Frequently Asked Questions

Before taking any loan, consider these key factors:

• Your actual need: Only borrow what you truly need
• Repayment capacity: Ensure monthly payments don't exceed 30% of your income
• Total cost: Calculate all fees, not just interest rates
• Alternative sources: Consider family, friends, or savings first

To calculate the true cost, add up all expenses:

• Principal amount (what you borrow)
• Interest charges (daily, weekly, or monthly)
• Processing fees (usually 5-20% of loan amount)
• Service charges and other fees

Use our loan calculator to get accurate calculations.

If you're overwhelmed by multiple debts:

• List all debts with amounts and interest rates
• Pay minimums on all, extra on highest interest debt
• Contact lenders to negotiate payment plans
• Cut non-essential expenses
• Consider debt consolidation if beneficial

Legitimate lenders have:

• SEC registration number
• Physical office address
• Clear terms and conditions
• Professional customer service

Red flags to avoid:

• Asking for upfront fees
• Requesting ATM PINs or passwords
• Threatening collection practices
• No clear contact information

Generally, NO. The Philippines abolished debtors' prison.

• Regular loan defaults are civil matters, not criminal
• Only fraud or bouncing checks can lead to jail
• Lenders can sue for collection but cannot imprison you

However, you should still pay your obligations and communicate with lenders.