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Monday, March 23, 2009

The Big Difference: Why Filipinos Are Mostly in Debt?

What is the minimum salary in Philippines for a university graduate? The answer would depend on so many things: where you graduated; what profession or degree; where you are having a job. What can you afford as newly graduate? As a neophyte? As a newbie? As a freshperson? A cheaply paid job that is more often than not an insult to your education and effort to finish... or is it? I have to admit it really depends on which one you are: overqualified, underqualified or unidentified. I also have o admit that diplomas are rebuttable as the quality of education all over the country is not the same: others are superior while others, let's admit is, are... well you know what I mean, right?

The topic that I have had with someone last weekend it the poverty in Philippines. This person told me that television is sucking each and every soul of Filipinos. Why? Because of the commercials: buy this car, buy this phone, this TV brand, all the appliances and electronic gadgets you can think of. The truth is, how much does it cost? Say the cellular phone is around Php 10,000 (majority of and you bought it. If you are a newly grad, do you think you can still live for the remaining days of the month after you bought the phone? Say your gross income for the month (an even bigger estimate compare to average) is Php 15, 000, you still have Php 5,000 left. But the truth is, you still have to pay taxes and it's around Php 750. You are left with Php 4,250. Are you renting a place? Are you sharing expenses with parents? Are you buying load for that phone you bought? Are you eating at all? Are you commuting for work? In short, it is very difficult to live with such salary if one has to buy a gadget. Or an electronic appliance for that matter: television set, DVD player, sterio, MP3 player, washing machine and all these things. Add the fact that you have siblings to spend for.

What I am saying is, Filipinos has the same aspirations in terms of material stuffs as western people do. But is the income the same? Television has redefined what is a need and what is luxury: all that is advertised in TV now is somewhat a "NEED". And that is bad. People are having debts just to buy these gadgets... is it good? It is good if you don't get buried in debts which happens usually. It is good if you are not thinking of your future and save for yourself. Why? I have to tell you that you are not 100% healthy all the time. Do you have health insurance? Do you have dental insurance? These things? Think about your future. gadgets only cause you to spend more. Buy the necessary, not the poshy that you don't actually use those functions as I know people can ever hardly use the call function there. Phones are mostly use to brag and that is not so good.

Mind you, here in Netherlands, regular salary, the basic, the lowest salary for a newly graduate is €1,700. And how much is the price of a mobile phone? A colored, with camera, with radio phone can cost as low as €30 and that has a €15 load in it already. Now do you see the difference? The percentage to gross salary in Philippines versus here in Netherlands is 0.0176 % versus 66.67%. Now do you see? Save for your lives, these gadgets can be stolen, lost and even not be properly used. Bragging and making the gadget as a social symbol is a shame. Build your future instead!

38 comments:

  1. I don't know if Filipinos are more susceptible than other people to going into debt... newly "discovered" wealth without proper training on how to use it? But this problem is certainly not unique. Many, many college students in the US are lured into huge debts because credit card companies issue them cards on the potential they have to earn high incomes. I'm sure that some day this whole credit web is going to collapse. I try to stay out of its clutches.

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  2. Okay, i do admit that once upon a time, i was with those full of debt pinoy, but i was determined not to pursue it, i was tempted by shopping and with CC with me, i can just buy anything i want. not until i realized that i can't live a life full of debt. don't have savings because my salary goes for payment with my 2 CC, i guess pinoy needs to realized and stop having credit. try to save and control oneself.

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  3. Hi,
    May I invite you to please join Filipinos Unite!!!. You may do so by commenting on my blog stating your name, address, name of blog and its url or by sending an email to melalarilla@gmail.com containing the same set of information. Thank you very much. God bless.

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  4. The problem of debt is nearly universal. It seems we all have a desire to keep up with the people next door - or down the street - or across the world. The problem with debt is that it compounds the differences we have with income and taxes.

    There is a humorous post about taxes - http://www.faithandfacts.com/2008/11/07/bar-stool-economics/

    I hope you fulfill your dreams

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  5. Great post! Interesting topic, Thanks for sharing.
    keep on posting.
    Dr.doogle

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  6. Hey,

    This post has a very good insight on the situation of Pinoys. Thank God, I don't have these kind of spending habits. But I guess, a lot of other countries spend on unnecessary things. For instance in Japan, fresh-grads gets around $1700 a month and they can easily splurge on a branded bag costing around $1500. Even though, cellphones are free but the post-paid bills cost more $60-$80 a month.

    I'm also a Pinay and now living abroad. I have just started my own blog: TheShanghaiExpat. Please feel free to visit and let me know what you think for a link exchange.

    Cheers,
    Nikou

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  7. hello ilovephil
    just dropping by to say hi and have a great day
    happy blogging

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  8. That is very true sis, some people want to have material things and they would do anything to get it just so they can brag about it. It's a shame, if you can't afford to buy it, just don't...

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  9. It's part of Filipino life..
    Untill such time, they will discover, they have lots of debts to be paid of and no more ways to escape... but to hide.....

    Nice site... im PAT... hope to be part of ur friends.. :)

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  10. hello just dropping by here again
    have a great weekend

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  11. hello,i appreciate your blog,really it's the problem in Philippines, because most of the people are not satisfied of what they have,they don't even think about much of their future,if they have money, they will spend it right away,a one day millionaire. please visit my site http://myblueheart.org/
    thank you..keep it up.

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  12. hello just dropping by here
    have a great day and happy palm sunday

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  13. hello there just dropping by here again
    have a great day and happy blogging

    ReplyDelete
  14. hello there my friend
    just dropping by here
    have a great day and happy blogging

    ReplyDelete
  15. O yes your right, bluedreamer's here. Hi blue! ;)
    Thanks for your visit ilovephil.

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  16. by the way i just tagged you in my blog hope you can participate on this meme i just created
    http://bluedreamer27.blogspot.com/2009/04/top-five-hottest-blog-meme.html
    have a great day and happy blogging

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  17. As far as i know that philliphines is a country which is underdeveloped as compared to other countries
    so the people here are also not well educated
    there is poverty all over and thats the reason why people are in debts i guess

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  18. Debt can be good, but is often not used the proper way and becomes bad. Be warry of debt there in the Philliphines as you watch what excessive debt is doing to America and Europe. Iceland is a great example also. Debt can be a very double edge sword...

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  19. have a great day and happy blogging
    happy earthday

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  20. just dropping by here again have a great day and happy blogging

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  21. hello ilovephil
    just dropping by here
    have a great day and happy blogging

    ReplyDelete
  22. di naman sa ganon paraan may utang tayo..
    hndi pah tayo pinanganganak may utang nah tayo..
    sdjang maluho ang pinoy makpagsuot lang ng me brand e feel na feel nah.. di pa nkontento bumibili pa ng fake.. tunay nmn di bah? ngah pala an ganda nun ibah kong nabasa huh? pede kang writer.. ee. hahaha.. parang nagbasa n din ako ng kay bob ong.. balik sa topic kanina.. bili ng bili pag tagl nmn sira.. at bumibili ng wlang k kwentang kwentang bagay.. hndi nmn pag suot nyo yun ganon bagay.. maganda nah kayo e.. di yun nbbgo ng mgah binibili nyo.. sana isipin nyoh kada gastos nyoh yun pinaghirapan nyo bgo nyo yun kinita at.. kundi nmn nyo pinghirpan iyon sana iappreciate moh! yun lang hndi biro mag trabho.. sa hirap ng buhay ngaun.. at sa hirap mkipagkompetensya.. sa ibang empleyadong gusto mgtagl din.. bumili lang ng kailangan talagah... at yun mggamit pang arw arw.. be practical.. at isa pa.. cc ba kamo? haler... kung gusto nyo lala tayo mabaon sa utang cgeh cge.. itulot nyo yan para mapareho tayo.. sa america.. ngah pala problema sa pinoy wala p man din mayabang nah.. mag ipon at para dumami.. at kesa gastusin nyo.. yan pera nyo kung marami.. idonate nyo.. cguro mas kelangan yan ng mgah kapus palad..

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  23. ^^
    have a great weekend i love phil

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  24. happy mothers day to all mothers in the blogosphere

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  25. dude.. i never think of Filipinos being susceptible to debt.. the country IS, but not the countrymen.. paano kc... yung politician, maxadong corrupt.. kaya ang maxadong poor yung mga tao..

    come in US, and you will see the meaning of DEBT.. mas malaki pa utang mga americans.. lol..

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  26. It is a crying shame that our society dictates what we need and how much. The sad thing is that most listen instead of ignoring this propaganda. Once we maxed out our credit cards there is nowhere else to turn. We are trapper and who truly cares? I believe what part of the country we live in makes a big difference too. I hope that those in the Phillipines will not get in the same boat as most Americans. Thanks for your honesty in this post!

    Friends 4 Life!

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  27. hello got an award for you
    hope you like it
    http://bluedreamer27.blogspot.com/2009/05/interesting-blog-award.html

    happy blogging

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  28. hi there just dropping by here
    happy weekend to you and have a great day ahead

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  29. I think it's everywhere. Anywhere in the world is in recession and everybody is in debt!Here in the US... Almost everybody will die with many debt still unpaid! :(
    Anyway, I have an award for you HERE!

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  30. You have a very big point here.

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  31. I don't think that almost all philipinos are mostly in debt, because some others countries Let say, Malaysia, Indonesia, or Singapore, have some problems to their economy, and also have the tricks to break the problems. :D

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  32. You have a valid point about TV having a great influence on its viewers. Aside from the fact that they indeed set the pace with regards to consumers' needs, they also introduce violence and sex to children.

    And yes, the salary does not properly commensurate the effort and hard work people put in their jobs. Sometimes, it's whom we know and what we know that get's us to a prized job.

    The price of basic commodities are spiraling and we are helpless to do anything about it.

    Anyway, the only consolation we can get is that "we are not alone." lol....just kidding.

    What we can do is to do what we can out of our dismal situation..and hope for the best.

    Cheers.

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  33. That should read , " IT'S WHOM WE KNOW AND NOT WHAT WE KNOW THAT GETS US TO A PRIZED JOB..."

    My keypads...they have a mind of their own...

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  34. So true. As I've learned and experienced it firsthand, Some of them have an extravagant spending habit. They tend to be materialistic despite the hard economic-crunching times their pockets are experiencing.

    This is what lack of future planning will do. I am not generalizing though. This is what I've seen in most of the Filipinos I personally know.

    Like for me, to tell you the truth, I haven't bought one single mobile phone in my entire life. I am not a Filipino but I live and work here. I value my earnings. I use a mobile phone(the lowest end of them all) and I don't care how other people perceive me with that phone.

    I've trained my kids to do the same even though they are still earning by their allowance. My eldest son asked for an iPhone. I just explained to him why he should not spend on useless gadgets. I told him to join existing promos if he want and at the same time, limit his spending.

    gadgets are doodads. cars are doodads. just buy a functional car and you are good to go. no need for those high-end automobiles.

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  35. material things makes people happy...i like ferrari too! the filipino in foreign country can afford to buy cellphone in the philippines because they have a job in foreign country...so what happen is the filipinos in foreign country send money to their family in philippines to buy this buy that and that...i think if the foreigner stop sending money to the philippines the people will realize how hard to earn money to buy cellphone...the problem is the government kept the filipinos damm so that corrupt educated government continue corrupting.

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  36. This is soooooo true. We Filipinos usually like to covet material things in life just to what? of course, bragging! What we see new in neighbors we wanted to have it too as if we all have the same amount of income. And this are called "Coveting". "Thou shall not covet" is the 10th commandment of God. We should have fear; coveting will not lead us to Salvation. Filipinos be content.

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