Learn about the advantages of paying a little extra each month

Whether it is a vacation, a car, a house, or a gadget – the reasons why we get a loan are endless. According to the Bangko Sentral ng Pilipinas (BSP), the top three reasons why Filipinos borrow money is to buy food, to fund school related expenses, and to pay for emergency situations.

Having too many loans may not be bad but it could hurt your financial health and prevent you from buying things you need. It can also hurt your credit score which could make renewing your loan or borrowing from other financial companies difficult, causing you financial stress. If you are already in this state, good news is, there is still something you can do to get back on the path to financial wellness.

PS Bank Debt-Free

Dealing with loans and at the same time being able to save is easy than you think. It only requires a bit of planning, discipline, and perseverance on your part.

Here are some tips on how to manage or totally eliminate your loans and save money at the same time.

1. Pay on time, every time. It is important to always pay loans and credit card bills on or before the due date. You will not only show that you are a responsible borrower, but you will also avoid late payment fees and charges.

2. Pay more. Do you know that you can save from paying more than your monthly loan amortization?

In PSBank, its Home, Auto, Business, and Flexi Personal Loans comes with a Prime Rebate feature. It lets you earn rebates in the form of “interest discounts” on any advance or excess payments made on the PSBank loan.  Over time, you can use the rebates to lower the loan principal, shorten the loan term, or even both.


Advance payment.  When you pay five days before your loan’s monthly due date, you will earn a rebate on a daily basis from the day your payment was posted to the day before your loan’s due date.

Excess payment. If you pay in excess of the amount required on your due date, you will earn a rebate on a daily basis from the date of posting up to the day before the next due date.

So, whenever you have extra money coming from a bonus at work, cash gifts or other sources of income, allocate some in paying off your loan or paying a bit more on the amount due. By doing so, you can pay your debt faster and consequently lessen your payables, leaving you with money for your savings and emergency fund.

3. Find ways to generate extra income. Having other sources of income is a great way to accelerate paying off your loans and adding up to your savings.  It is also a great opportunity for you to make the most of your talent, skills, and hobbies.

4. Build your savings. While paying off your loans, you can also start building your emergency fund by establishing good spending and saving habits.

To start building your savings, you need to trim your expenses.  Control and cut your spending on discretionary items such as entertainment, clothes, vacation, recreation and the like. The amount that you save from these depends on your commitment to eliminating your loans and goal of having enough money for your emergency fund. The more committed you are, the easier it will be for you to give up on unnecessary amenities in life.

Add or increase the amount that you place in your savings account by placing a portion of your extra money from annual raises, bonuses, etc. and other sources of income.

There are a lot of other ways to achieve your goal of being debt-free and being financially healthy.  The most important aspect of it is when you decide to start the journey.

For inquiries on PSBank loans with Prime Rebate, visit  www.psbank.com.ph , your nearest PSBank branch or call our 24/7 Customer Experience Hotline at (02) 845-8888.

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“Good to Know” is PSBank’s public awareness campaign that provides financial education, relevant information, and helpful tips on how to manage, maximize, and protect your hard-earned savings and investments.