Author: Lara

Death is inevitable. This means no matter what happens, regardless of the cause, we will all die eventually. This is why before that day comes, one must be able to prepare for it to avoid conflict among family members.

One of the most common questions asked is what will happen to debts in case the principal borrower dies. Upon death, does this mean the debt will be inherited by his or her heirs? Are the heirs obligated to pay off the principal’s loan?

Here’s what we know:

Debts Will Stay – Until Paid

According to Article 774 of the Civil Code of the Philippines,

“Succession is a mode of acquisition by virtue of which the property, rights, and obligations to the extent of the value of the inheritance, of a person are transmitted through his death to another or others either by his will or by operation of law.”

Consequently, Article 776 of the same law states that,

“the inheritance includes all the property rights and obligations of a person which are not extinguished by his death.”

What does this mean?

Death does not extinguish any debts or loan obligations. Unfortunately, it will remain until it is paid by the estate. Because of the rules on succession, both assets and liabilities will be passed on accordingly.

What happens to debts?

Don’t worry. When the principal borrower died, individuals or entities like banks and lending companies will NOT go after the heirs. This means the lender cannot harass any member of the family to pay off the loan obligation. The lender cannot also file a case against any family members to pay the debts.

Instead, any outstanding debt will be put against the estate, which includes assets the principal borrower owns and rightfully his up to the time of death. The lender must file a claim against the borrower’s estate that s/he owes them x amount in order to get paid.

According to Philippine laws, debts must be paid first before any assets can be distributed to the heirs. Don’t worry about the family home because the law, particularly the Family Code, Rules of Court, and Commonwealth Act No. 141 protects it against any claims as a result of unpaid debt.

What about debts with a co-maker or guarantor?

First, let’s define a co-maker. According to the BSP, co-maker is a person that promises to pay the principal borrower’s loan in case the latter is unable to do so. The amount depends on what is written in the loan contract.

There are possible scenarios:

• If the loan contract explicitly states that the principal and co-maker are “jointly and solidarily liable” to the loan, then that means the co-maker is liable for the entire debt and the lender can go after him or her.
• If there is a specific amount or percentage written in the loan contract, say the co-maker is liable only for 20 percent of the amount, then the co-maker can only be asked to pay up to 20 percent and the rest will be charged to the estate of the principal borrower.
• If there is no specific provision in the loan contract, then the co-maker is only liable for half of the outstanding debt.

Regardless of the scenarios, the unpaid debts will be assumed by the co-maker, depending on what is written in the contract.

The rules are different for guarantors. Guarantor is defined as a person or organization that guarantees the loan using his or her own financial status. The guarantor’s assets will serve as a collateral and in case of death, s/he will pay off the loan first on behalf of the deceased borrower.

Thereafter, the guarantor can run after the principal borrower’s estate and demand reimbursement. S/he must make a claim as well to be able to collect from the estate.

What can you do as a principal borrower?

Surely, you don’t want to burden anyone with debt. Even if unpaid loans will not be directly charged to your living family members, it could still cause stress and anxiety on them. You don’t want them to go through court proceedings, right?

Here are tips to remember before you apply for a loan:

• Borrow with a purpose. Don’t just borrow money for the sake of borrowing or buying material things.
• Set aside monthly payments for the loan. This way, whatever happens, there is a dedicated fund that will pay off the debt.
• Make timely payments. You won’t be able to incur additional expenses, too.
• Prioritize loan payment, especially if you have additional funds.

At the end of the day, you don’t want to burden your family. Spend your money wisely and borrow responsibly.

Covid-19 affected many things, including one’s financial state. Since you’re back in the Philippines, you might find it challenging to look for other sources of income. Unfortunately, lack of funds isn’t limited to lack of cash for groceries or payment of bills. This could also adversely affect your kids’ tuition fee.

Because of the pandemic and the sudden shift to online classes, you have no choice but to also spend on laptop or tablet, upgrade your Internet connection, and dedicate a space for your kids’ learning, which also means additional expenses.

The thing is at the end of the day, education is important. In case you are short in funds, student loan is something you can consider.

Here are some educational assistance programs you can look into to finance your child’s education:

CHED’s Unified Student Financial Assistance System For Tertiary Education

Also known as UniFAST, the CHED Student Loan Program is open to all Filipinos who are undergraduate, graduate, medicine, and law students enrolled in public or private schools or universities. You can also borrow up to P60,000 per academic year, payable for one year.

Interest rate is zero percent IF the loan is paid before the semester ends. Otherwise, six percent interest will be imposed.

As of this writing, CHED Student Loan Program offers the lowest student loan in the country. To apply, make sure you submit the following documents:

• Three copies of accomplished Application Form. You can access it here.
• Photocopy of the applicant’s Certificate of School Registration
• Photocopy of applicant’s school ID
• Income Tax Return, payslip, Certificate of Employment, audited financial statements, or other proof of income of the applicant or applicant’s parents
• Co-maker’s ITR, other proof of income, and government-issued ID
• Two 1×1 photo of both the applicant and co-maker

Once you have all the documents prepared, submit the requirements to the office in charge of student loan applications in your child’s school. Thereafter, the school will forward the application to CHED.

If approved, then you will also be asked to open an account with the Development Bank of the Philippines since this is where the proceeds will be credited.

You can also learn more about the program here.

SSS Educational Assistance Loan Program

Known as EDUC-ASSIST, this student loan program is open to all SSS members below 60 years old, with monthly income of P25,000 or below, and with at least 36 posted SSS contributions, with six of which must be posted within the last 12 months.

You can borrow up to P20,000 per semester and payable up to five years for four- or five-year course OR up to P10,000 per semester and payable up to three years for two-year or vocational courses.

Interest is six percent per year. Take note that there is also a maintenance charge of two percent and penalty of one percent per month in case of late payment.

Below are the requirements:

• Accomplished application form. You can access it here.
• Valid ID
• Assessment or Billing Statement from the applicant’s school
• Proof of relationship to the applicant such as birth or baptismal certificate
• Proof of monthly income such as latest payslip, Certificate of Employment, ITR, or notarized Affidavit of Source and Amount of Monthly Income
• In case you cannot provide proof, you can issue a notarized Affidavit of No Income

You can submit the requirements to SSS branch near you. Make sure to present the original and photocopies of the mentioned documents. If approved, then you can claim the check from the Administrative Section of the SSS branch where you applied.

Unfortunately, this educational assistance program is only limited to one beneficiary. Also, online application is not yet available, which means you have to personally submit the application.

PAG-IBIG Multi-Purpose Loan

The agency’s Multi-Purpose Loan can be used for variety of needs, including payment for tuition fee and other school expenses. So if you are an active PAG-IBIG member with at least 24 months contribution, then you can apply for a multi-purpose loan to cover school expenses of your kids.

You can borrow up to 80 percent of PAG-IBIG regular savings with 10.5 percent interest per year. The loan is payable for up to 24 months with two-month grace period.

You can learn more about PAG-IBIG’s Multi-Purpose Loan here.

LandBank I-Study Program

If you need bigger amount for your children’s education, then Landbank can help. Through the I-Study Program, parents who are struggling in sending their children due to the pandemic can still do so to ensure education.

The bank’s I-Study Program allows you to borrow up to P300,000 with five percent per year interest. You can pay the loan in one year in case of short-term loan but for longer term loan, the amount plus interest is payable up to three years with one year grace period for the principal.

Other charges include loan processing fee, Documentary Stamp Tax of P1.50 for every P200, and penalty charges in case of late payment.

The good thing about this educational loan is that it covers all levels and not restricted to kids who are in college. In case you’re interested, you must prepare the following documents:

• Accomplished loan application form
• Valid ID of the borrower
• Proof of income such as Certificate of Employment, pay slip for the last three months, and ITR
• Proof of billing address from at least two utility companies
• Enrollment or registration form from the school of the beneficiary
• Form 138 or Certified True Copy for the previous semester or quarter
• Certificate of Good Moral Character from the school
• Schedule of payment of school fees and other expenses related to enrollment for each semester or the entire year

To apply, simply visit any Landbank branch near you. Make sure to bring all documents for verification. If approved, then you will be required to open a deposit account from Landbank for disbursement of funds. You can also check this link for more details.

There are still several banks and private institutions that offer student loans but so far, the ones enumerated here have the most affordable rates. Check them out and see which one suits best for your child’s needs. Don’t hesitate to ask for sample computations. More importantly, prepare all documents and make sure that you have a copy of the originals.

Although it may not seem a lot, the amount you can get can be helpful in getting your kids back to school.

The Covid-19 pandemic taught us many things – the importance of having an Emergency Fund or savings, learning how to value non-material things, how to be resilient, and the list goes on. Aside from these, the pandemic taught us how to adjust our lifestyle to be able to save more, especially now that there is a halt in overseas work.

The truth is there are tons of ways on how we can save cash during challenging times like this. In case you are looking for ideas on how to do it, then let this list guide you.

Creative And Effective Ways To Save Cash

1. Set a budget – for everything. This is a must. Pandemic or not, having a budget is important because it helps you keep track of how much money goes in and out every month. This will also give you an idea on what expenses you can get rid of for extra cash.
2. Grow your own food. Having your own fruits and vegetables backyard will help you in saving money instead of buying them from the market or grocery. Herbs are popular nowadays, but you can also plant calamansi, pechay, ampalaya, and other veggies in your own home.
3. Unplug. Did you know that standby appliances could still consume electricity by as much as 10 percent? This could be added to your total electric consumption, which also means higher bill. Therefore, unplug unused appliances since it also promotes electrical safety and prevents the possibility of fire.
4. Go for energy-efficient appliances. Even if they are in use, consumption cost will be lower, which means you get to save from electricity, too.
5. Be mindful of your water consumption. Turn of faucet when not in use, use a glass when brushing teeth, use a pail when washing your car or watering the plants, and check for any leaks. Simple steps could go a long way when you save water. This will help reduce your water bill as well.
6. Reduce alcohol intake. Yes, we all need to unwind but drinking alcohol could eat up a chunk from the income. Limit, if not get rid of it to be able to save more.
7. Take advantage of sales and deals. 10.10, 11.11 – these are dates many are looking forward to because of sale and great deals online. If you NEED to buy something, then take advantage of these sales and promos so you could save more. P20 savings or free shipping fee are still savings.
8. Let the light in. Opening your windows and letting the sun in is a good way to keep your home well-lighted. Take advantage of it since it saves electricity, too.
9. Easy on takeouts. Cooking can be a tedious task but think about this: you get to save more. As much as possible, reduce your food deliveries.
10. Always stick to essentials when doing the grocery. It’s tempting to buy the food you see in the supermarket, but do you really need it? As much as possible, stick to essentials. This is where you will appreciate growing your own food because you can skip certain items since you have them on your backyard. This means more savings, too.
11. Cancel subscriptions you don’t need. Who doesn’t want entertainment? After all, we all need something to distract us from the negativity in the outside world. Still, if this form of entertainment is charging you with an amount that doesn’t suit your daily needs, then it might be best to cancel that subscription. There are many ways to keep yourself busy without breaking the wallet. But if you really need that streaming, then at least consider sharing. This way, you only get to pay half of the price.
12. Make your own coffee. Who needs P180-worth of coffee anyway?
13. Keep your bills. Doesn’t it feel good when you see P500 in the drawer that you accidentally forgot? If you have extra bills, then consider “hiding” them. This could come in handy during emergency.
14. Don’t forget the coins. Surely, you have lots of coins lying around the house. Put them in a coin bank and use it. You might be surprised to find out that the coins lying around is worth a lot.

These are just simple adjustments but could benefit you in the long run. At this point, we need to think of ways to maximize and stretch the money we have, and these tips could help us become more mindful and careful with our spending. This could lead to bigger savings, too.

Finding a job during this time won’t be easy. Even if you want to work, there is no assurance that a company will hire you, despite your qualifications. Unfortunately, this pandemic affected most business, with many forced to close down to avoid incurring further losses. Until there is a vaccine that could put an end to the Covid-19, it will take time before we can all go back to our normal lives.

What can you do? Putting up your own business while waiting for deployment is a good idea. Apparently, there are many who are already venturing into this and it won’t be long before the market gets saturated.

If you’re looking for a good way to earn extra, then consider becoming a contact tracer.

But first, what is contact tracing?

Contact tracing is the process of identifying, evaluating, following up, and managing individuals that could have been or were exposed to the Covid-19 virus. If conducted effectively, contact tracing could:

• Interrupt ongoing transmission
• Lower the risk of spreading the virus
• Inform and alert individuals who are at risk of getting the infection
• Offer preventive care or counseling

As of this writing, the government allocated P5-billion for this and are currently open to hiring 50,000 contact tracers. 20,000 will be deployed in Luzon while Visayas and Mindanao will have 15,000 contact tracers each.

What does it mean to be a contact tracer?

According to the World Health Organization, a contact tracer has three main responsibilities:

• Identification

As a contact tracer, you need to identify the possible individuals that the person with Covid-19 came in contact or interacted with. This includes members of the family, friends, co-workers, and even people in the places s/he went to.

• Contact Listing

This responsibility covers creation of list of all contacts of the infected person. Consequently, those included in the list will be notified regarding the status of the person with Covid-19 as well as what they can do in case of close contact. Contact tracers must also provide necessary information on how to prevent transmission.

• Follow Up

Contact tracer must also monitor symptoms and follow up contacts for possible signs of infection.

What do you need to be a contact tracer?

• Ability to collect data
• Understands and respects the concept of patient confidentiality
• Great interpersonal skills
• Can explain Covid-19 clearly and in a manner that is easy to understand
• Must have ethical and professional conduct
• Ability to conduct interviews while maintaining patient confidentiality
• Must be resourceful in collecting, locating, and communicating not just with the infected person but also individuals with possible exposure

Application is open to ALL, although applicants with a Bachelor’s Degree in Criminology and Health-related course will be given priority.

Is there a required training before you can become a contact tracer?

As of this writing, TESDA is offering an online course for contact tracer training.

With the help of the Department of Health and other health industry experts, TESDA was able to develop a training program that equips potential tracers with necessary skills needed for the job. The aim is to provide “world class and competent human resources for contact tracing.”

The training program will run for 15 days, which includes both online and face-to-face learning.

You can access the free training here.

How much can you earn?

Contact tracers have a salary grade 9, which means you can earn at least P18,000 every month.

Take note that the job is only temporary. although the agency is pushing for one year employment. Nevertheless, this is a good source of income in the meantime.

Where to Apply

The Department of Interior and Local Government, including its regional offices, are responsible for handling applications of potential contact tracers.

Are you interested? Simply visit the DILG office near you to apply because who knows, you might be qualified.