Pay Off a Loan Early or Invest The Money First?

I've written before about choosing between paying off a loan early or investing the money. And I thought it's worth revisiting that as I'm about to make the same choice myself.

A few years ago I got a car loan. However, I didn't follow most experts' advice. I did give a little bit more than the usually required down-payment and sought the lowest interest available. But I got a 5-year loan. That way I could get the lowest monthly amortization.

Most experts' advice is to instead get the lowest loan total - that is, get the option that pays the least interest.

Not the most savvy move, specially for a guy with a personal finance blog. But sometimes numbers aren't what they seem at first.
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How to Bring Down Your Monthly Car Loan Payments

One of the most frequently read posts in this blog is the one about Car Loan rates. And consequently I get asked a lot about various stuff regarding car loans. But the most popular question seems to be about bringing down the monthly amortization/payments. So I thought it would be a good idea to tackle it in more detail here.

So what can you do to bring down your monthly car payment?

Let's tackle them in chronological order:
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Car Loans - What You Need To know

Thinking of buying a car? Or know someone who is? Then this article is for you.

My article on car loan rates is one of the most popular articles on this blog. And consequently I got asked a lot of questions about car loans in general. So I thought it would be useful to post everything I know and learned here.

So here's some of the usual questions and decision points I encountered.

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How to Get an SSS Salary Loan

You typically don't want to take on debt, but when you do, it's good to be smart about how you do it.

Which is why you typically want to avoid loan sharks (5/6). And you definitely don't borrow against your credit card.

Unfortunately there are instances when banks won't lend to you. But if you really need a loan, at least try borrowing from the government through SSS (or PagIbig) before resorting to loan sharks (or even micro lenders, since their interest rates are also usually high).

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Review of Philippine Banks' Home Loan Interest Rates and Process Part 2

In part 1, we discussed the minutiae of home loans here in the Philippines. Now, we tackle the key aspects: The interest rate and years to pay.

So who's got the best home loan rates?

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Review of Philippine Banks' Home Loan Interest Rates and Process Part 1

Since my post on car loan rates is one of the most read posts in this blog, I figured it would be equally helpful to find out more about home loans.

So during some free time, I went out and talked in person to several banks about their home loans. And were you aware that there are different types of home loans?
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11 Useful Credit Cards That Can Help Your Budget

You've probably heard of people having multiple credit cards. Great way to get buried in debt, right?

If you have no financial discipline, that's the most likely outcome.

But if you can control your spending, some credit cards can actually give you an edge. Here are some examples of useful credit cards that can help you with your budget.
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Is it ok to get a loan?

Being in debt isn't always a bad thing. There's good debt and bad debt, and it's important for us to be able to tell which is which.

But sometimes it can get confusing. Like, is it better to save and invest for a house rather than buy it through a housing loan?

To give you an idea, here a 6 examples of when it's ok to get  a loan, and 6 examples of times you're just burying yourself in debt.
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CMAP and You

Last time, I wrote about the CiC and the possible new role our credit information and history will play in our finances.

However, as a source of credit information, it's not unique nor even the first in the Philippines.

For about 80 years now banks, credit cards and other lenders could get credit information from CMAP - Credit Management Association of the Philippines, Inc.

So what's CMAP?
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The Credit Information Corporation and You

Last time, we tackled the establishment of the Credit Information Corporation, and what having an individual credit rating means for ordinary folks like us.

So now that it's here, here's a Q-and-A style run down of what we can expect.
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Credit Ratings and You

If you're reading personal finance blogs and/or searching for finance/money related articles on the net, then you've probably seen ads or spam for it.

Get a free credit report. Know your credit rating - or fix it, raise it, or whatever.

It's mostly a U.S. thing (or some other foreign country like the U.K.). There's no such thing here in the Philippines - until now that is.
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Pag-ibig Housing Loan

As I mentioned in my earlier post, there's a few important things that are left unsaid on the Pag-IBIG official site. It's instead discussed in the loan counseling session that you're required to attend first. (note: I've read elsewhere that it isn't required anymore. I would still attend though, because of the info shared there that might not be on their site.)

I haven't attended myself, so I relied on two coworkers who have attended and loaned from Pag-IBIG. (I'll post an update once I am able to attend the seminar/orientation)
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Pag-IBIG's benefits

I've been digging up on Pag-IBIG (HDMF) trying to find out more about it's housing loan. But along the way I stumbled across a few cool facts.

Did you know that Pag-IBIG actually stood for Pagtutulungan sa Kinabukasan: Ikaw, Bangko, Indusria, at Gobyerno?

And did you know that you could withdraw everything you've contributed to the fund? Including the part your employer contributed (if any)? And also including all dividends earned?
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9 Debt Payment Techniques

Paying off debt, at it's core, is pretty simple. Just fork over money equal to the debt, right?
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6 Step Plan For How Parents Can Teach Their Children How To Properly Handle Credit Cards

When I say parents can give credit cards to students, I'm not focusing on students getting credit cards.

I'm focusing on parents taking charge of their children's financial well-being and future. Don't just give it to them, teach them what it is and how to use it properly.

Avoidance is an ineffective response to something that will not be avoided. Waiting, on it's own, will not guarantee a better outcome.

And if our children will eventually end up with credit cards (and they most likely will if the parents have one themselves), then it's much better to be proactive and teach them the right habits.

But how can we do that?

Just giving them a credit card and "winging it" would be fatal (financially speaking). That's no different than just waiting for them to get jobs and get one on their own.

Instead we have to be systematic about it.
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Why Students Should Be Taught How To Use Credit Cards By Their Parents

A while back I featured a guest post about how students can apply for a credit card (along with some tips on handling it).

It was pretty run-of-the-mill, though I thought the concept of students handling credit cards was novel and I excitedly endorsed the idea. (As it turns out, it wasn't all that novel.)

I got a few random likes, but in one facebook group it was lambasted. The idea was apparently backwards and would result in disaster.

I had a long moment of self doubt. But as I thought deeply about it, I reaffirmed my earlier conclusion.

If you're a parent, and you're handling your credit card very well, then it's really a good idea to have your child get a credit card.

Why?
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Best Personal Finance Tip

Don't get into debt. Simple as that.

And you don't have to just take my word on it; hear it form Warren Buffet yourself.
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Be Financially Secure - Manage Your Finances

Managing our finances is an integral step in achieving financial security. And today, we have a guest post from Marie with helpful tips on how we can manage our finances.
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