In the Philippines’ economic climate, where confidential funds are everywhere, and families struggle to make PHP1,000 last a week, borrowing money — or “utang” — has become a typical band-aid solution to our financial woes. But how do you even go about borrowing money without rubbing people the wrong way? Here are eight tips on how to borrow money responsibly:

1. Ask yourself: Do you REALLY need to borrow money?

Before rehearsing your ‘pwede pautang‘ monologue, it won’t hurt to think about why you’re hitting up people for cash. Is borrowing really the best option? There might be money-saving tricks you haven’t tried yet, like cutting down on unnecessary splurges to heal your inner child or channeling your inner frugal guru. 

2. Borrow money from the right people

3. Be honest about your reasons for borrowing

Don’t want to tell people why you need the money? Your best-case scenario for that is getting major side-eye. No sane person would throw cash your way without giving any reason why. Even if the reason feels a tad too personal — whether it’s for overdue utility bills, extra funding for an upcoming trip, or some TLC for your crumbling home — a little context can go a long way. People are more likely to open their wallets if you’re upfront about your money dilemma. 

4. If you get rejected, don’t take offense

While you probably know some people who’d lend you money in a heartbeat, the reality is some won’t even give you the time of day, let alone their money. It’s okay to feel bummed when they say no, but you don’t get to be the money police either. 

Whatever people do with their money is none of your business, and you’re not entitled to people’s hard-earned money. The sooner you wrap your head around that, the better.

5. Repay as agreed

Great! You’ve got a real-life money genie, but avoid making promises that sound too good to be true when it’s time to repay. The foundation of lending and borrowing money is trust. If you swear the debt is gone within a week, you better hustle to make it happen! Otherwise, you might find yourself known as the never-on-time borrower everybody secretly avoids. Not a good look.

6. Express gratitude

Although this is a no-brainer, some people can’t spare a minute to thank whoever saved them from their financial misery. Once you receive the money, a simple “thank you” does wonders. Don’t be that person who reeks of ungratefulness, okay?

7. Communicate regularly

Life is full of surprises, especially when you’re in debt. There are moments when you can’t pay a cent, no matter how badly you want to, because your current finances are playing hard to get. You can ask for more time to settle it or throw in some interest if it’s part of the deal. Whatever happens, keep the lender in the loop and don’t just vanish into thin air. 

8. Learn from the experience

And lastly, if you’ve had to borrow money due to financial difficulties, take it as a cue to make smarter spending choices. Start by identifying your spending quirks, creating a budget, or saving any extra cash to avoid similar situations down the road. Here’s to being debt-free and having the freedom to splurge on what truly makes you happy!

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