Jump into your goals with loans — here’s how

When it comes to loans, some people tread with caution — and for good reason. It's not easy to be tangled up in debt. But if you know your loans, there’s really no need to be afraid: loans can help you reach your goals faster, and in a way you can manage. Let jump-rope queen Lovely and financial rookie Issa guide you how you can jump into loans in the fifth episode of The Flex Series. 

1. Find your rhythm. 

The first thing you need to determine when getting a loan is what type to get. There are car loans, home loans, personal loans, and a whole lot more you can apply for by visiting your bank’s website. You can even apply for a Special Installment Plan (SIP) for purchases made on your BPI credit card, simply by reaching out to your branch or via the BPI Contact Center. All these different types of loans have different terms, so you’ll need to decide which one you need most.

There are several factors: your income, the interest rate, and the number of months you can repay the loan. Lucky for you though, there are a couple of online loan calculators that can help you get an idea of how much you’ll need to pay each month. Try the BPI loan calculator below:

2. Coordinate your pace.

The key to handling a loan is balancing your budget. Since you’ll be making monthly payments, it’s best to take stock of all your regular expenses and things you’re saving for — a car, condo, travel, or business — and see if your sample calculation will fit into your monthly budget. It’s going to take a bit of math, but it’s nothing a simple spreadsheet can’t handle! 
 
Some auto loans, for example, can have payment terms starting from 12 months. In some cases, such as with BPI MyKotse, the payment term can extend up to 84 months. This longer pace of payment can provide greater flexibility and can help lower your monthly payments, making car ownership more manageable.

Here’s a quick guide to help you decide: 

 
📊 How much is your monthly budget? Can you handle bigger payments, or do you prefer smaller ones spread out over time? Shorter terms save on interest, but longer terms are easier on your wallet. 

🤝 What is the total loan cost? Do you want to save on interest or keep your monthly payments light? Shorter terms cut costs, while longer terms offer more breathing room. 

🤸‍♂️ How flexible are your finances? Do you have wiggle room for other expenses? A longer term can free up extra cash if you need it.

 
If you want to take your budgeting a step further, check out this guide to budget like a boss.

3. Keep your eyes on the prize. 
 

Taking out a loan is a long game, and the key is to stay focused. Remember to take on only what you can handle — if you’re jumping too many ropes, you can trip over your finances. And if you ever feel like you’re losing balance, don’t be afraid to ask for help. For example, Virtual Financial Coaches from NEXT by BPI Preferred are here to give you guidance and support and make sure you stay on track.

Once you find the right rhythm, getting into loans can be like a walk in the park. Remember, loans are a tool for reaching your goals — not something to be feared. Loans can help you invest in your future by addressing your most immediate needs while getting some breathing space for your finances. So, will you finally jump into loans?

Want more financial education content? Visit NEXT by BPI Preferred’s The Program.