Debt Free Since 2017

Last year, I made a commitment to myself to stop borrowing for other people. It’s all because of several experiences that brought me to a rude awakening.

Let me do a flash back.

Admittedly, there were instances when I was asked to apply for a personal loan. And I was also asked to renew a personal loan. There were also times in the past when people related to me asked me to use my credit card for some of their purchases for daily living.

Yes, it was difficult for me to say no.  I have to admit there were times I was so stressed that I did not want to look at my credit card statement. I was promised that the person would pay what he purchased using my credit card. The due date came and the bank called me to remind me of my payment due for that month. Well, of course, the credit card was in my name and it was me that the bank had to remind, not the person who rode on my credit card.

Then, there were times, that I had to foot the monthly amortization for the personal loan when the person promised that he would pay the monthly dues. That happened more than twice. I recall the instance when it was two succeeding months that I paid for the monthly due for the personal loan. And then, my daughter had to be confined in the hospital. After my daughter’s confinement, I called the person who owed me money and politely requested for it. The reason was I took some money from the envelope that was supposed to cover my daughter’s tuition fee in order to pay the hospital bill. The person said, “Wala!!!” Ouch. That hurt. But later that day, a certain amount of money suddenly was reflected on my savings account.

It did not feel good living life like that.  Honestly, I felt so overburdened. I am trying to stand on my own two feet and survive. I do pay my bills on time, send my daughter to a good, private school and finance everything on my own. It is a burden too heavy to keep.

At some point last year, I reached my threshold. I finally decided to stop applying for personal loans for other people in my name. I also stopped letting people use my credit card for their needs.

Since May 2017, I have been debt free. I even told the person this year to stop borrowing money from financial institutions because of the high interest rates. I also advised him that it is not good to keep on borrowing money.

I feel so relieved. It feels good to be debt free at 40. Well, it is not just good. It is wise to be prudent in our finances.

I Fully Paid My Daughter’s Education Plan!

Nine years ago, I purchased a pre-need education policy from Sun Life. The policy that I purchased has to be paid for 10 years. I paid for it on a monthly basis. Well, I could only afford to pay it monthly even though I knew I would be able to save by paying annually.

The pre-need education policy is Sun Education Plus. I know it may not be enough to cover the whole expenses during my daughter’s college years. It’s better than not having an education plan at all. Since I only have one child, I can simply add funds during her college years by looking at the benefits I have. Since I am a regular employee, I have 13th month pay and leaves that are convertible to cash.

Now, the only thing that made the expenses bigger is the implementation of Deped’s K-12 program. It added two more years of high school education before entering college.

Because of the sudden change, I decided to fully pay the Sun Education Plus policy this year.  I paid it full on January 2018.  Where did I get the funds? I took it from my leaves that were convertible to cash. I changed the payment mode to annual to be able to save on the last premium payment. My proof can be seen below.

It’s a nice feeling to have fully paid this education plan. I am free of the premium payments now.   I know I made the right decision by purchasing this policy.  Aside from being able to fund my daughter’s college education, I will get the contract price in a certain number of years from the last availment in two payouts. It can be used to avail a health insurance plan for me. Now that’s money that has been properly managed.