Is This a Good Solution?

Availing Loan To Pay Off Credit Card Debt

I’m writing this as I wait for my monthly statement of credit card account to arrive this week. I keep a track on my expenses and knows when is my due date payment but I still need to check my SOA just to be sure. I have thought of several options to trim down my credit card debt. Although it is not much, I am not quite comfortable knowing that my expenses have exceeded to what I could really afford. Hmpf! But don’t get me wrong, it is not about impulsive buying or that I have used the credit card just for the sake of buying something unnecessary. I do pay a little higher on my minimum balance due but what I really want is to at least pay off my credit card debt in half.

Anyways, going back to the question, is taking loan to pay credit card a good decision? According to the tips I have read over the net, taking a loan to pay credit card is one good solution like me could opt. I consider following this advice but where to? It also stated that when looking for loan institution; choose the one that offers the lowest interest rate.

My best choice would have been SSS if I didn’t fall one month short of its required number of contribution. Blame it to their delay of posting. Tsk. HDMF is another good alternative but I how much do they grant? A multi-purpose loan only grants 60% of the total TVA which I don’t know how much I have contributed as a member as yet. This is payable in 1 to 2 year term at 10.75 interest rate per annum. Good deal right? Calamity loan could have a higher loan proceeds but as what it’s called, there should be a calamity first before you could avail this.

Here are the qualifications and instruction I browsed in their site.

Who May File

• The member has made at least 24 monthly contributions.
• Members with active Fund membership at the time of application with commitment from
• both the employee and employer to continuously remit contributions at least for the term of the loan.
• For members who have withdrawn their membership contributions due to membership maturity, the reckoning date of the updated 24 monthly contributions shall be the first monthly contribution following the month the member qualified to withdraw his Pag-IBIG contributions.
• A member with an outstanding Pag-IBIG housing loan that is not more than 9 months in arrears and is not yet cancelled or foreclosed.
• A member with an outstanding Pag-IBIG housing loan that is more than 9 months in arrears but is not yet cancelled or foreclosed may be allowed to avail of an MPL, provided that the purpose of the MPL is to update his/her housing loan arrearages.

How to File

• Secure the Pag-IBIG Multi-Purpose Loan Application Form (MPLAF) from any Pag-IBIG Fund NCR/Provincial branch.
• Accomplish 1 copy of the application form.
• Under PACSVAL/PDDTS releasing, attach photocopy of passbook or Automated
• Teller Machine (ATM) card reflecting the account name and bank account number.
• Submit complete application, together with the required documents to any Pag-IBIG Fund
• NCR/Provincial Branch. Processing of loans shall commence only upon submission of complete documents.

LOAN FEATURES

Loan Amount

The loanable amount shall depend on the number of contributions made, based on the following schedule:

No. of Contributionsnt--------- Loan Amounto

24 to 59 months ------- Up to 60% of the TAV

60 to 119 months -------- Up to 70% of the TAV

At least 120 months -------- Up to 80% of the TAV

Interest

10.75% per annum for the duration of the loan.

Release of Loan

Through a check payable to the borrower or shall be credited to the borrower's account through LANDBANK's Payroll Credit Systems Validation (PACSVAL)

Loan Term/Payment

The loan shall be paid over a maximum period of 24 months, plus the applicable grace period of 2 months for local accounts and 5 months for centralized accounts. Centralized accounts shall refer to employers that prepare the payroll in advance, usually at the head/central office. All other accounts not falling under the category of centralized accounts shall be classified as local accounts.

• For employed members, payments shall be made thru salary deduction
• For voluntary members/individual payors, payments shall be made through any of the following modes:

- Salary deduction

- Over-the-Counter;

- Auto-debit arrangement with banks;

- Other modes that Pag-IBIG Fund may adopt in the future

Loan Renewal
Payment of at least six (6) amortizations.

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I have already filled up an MPL form and gave it to our company HR for signature and computation of my NET pay. Just wish she will do it ASAP before this month ends. My due date falls on the 1^st week of each month!