Debt with dignity: How to choose digital lending facility for outstanding loans
MANILA, Philippines — Let's face it. No matter how hard you try to manage your finances and keep your expenditure well within your regular income, there are times when you need some extra money for a good reason.
Bridge an income gap perhaps, finance a small business you've been planning to put up for years, help pay for the medical procedure that your mom needs to undergo, or simply keep your household moving like a well-oiled machine when it has been chugging and stalling for a while now.
With the rise of digital lending in the country, regulated platforms have brought formal credit closer to underserved Filipinos long excluded from traditional finance, yet abusive collection practices by rogue lenders continue to weaken trust in the system.
Some digital lending companies present themselves very impressively and make their terms seem like the easiest to comply with for those who need the extra money fast, so quite a number of people end up dealing with them.
That is to find out later on that there are hidden charges needed to be paid, unreasonably high interest rates, and, should they be remiss with even one payment due.
They are harassed with constant threats, text messages, and calls, even acts of public shaming with no let-up until they pay. There seems to be no way out once you're trapped in their system.
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This is why it is important to choose the right digital lending company to partner with and not be lured into a shady deal by sweet promises and attractive terms. If a deal feels like it is too good to be true, it probably is too good to be true and you better beware.
So how do you land with a legitimate digital lending company that will honor the terms of your deal and treat you — and your debt — with dignity and respect?
Do your research. Make sure you look up the company and find out everything you need to know about them.
Find out if it is a legitimate digital lending company, duly registered so that they will be legally bound to fulfill the terms written on the legal document you will sign up for, and check people's reviews on the company's performance.
Deal only with a legitimate company that offers good loan packages, has received glowing reviews, and comes highly recommended
Find out all the terms involved in the loan that you are planning to secure. The terms should be clear and upfront, fees and payments should be transparent, and there should be a fair collection scheme. There must be no hidden terms, charges, or collection schedules and practices.
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