5 Ways to Afford the Things You Want While Staying Financially Healthy
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Are you currently having a hard time paying off your multiple debts? From household needs to monthly bills and tuition expenses, debt can pile up fast. We know it can feel overwhelming, boss, especially when you don’t know where to start with your loan repayment.
In this guide, you’ll learn about the snowball method, one of the simplest and most effective ways for debt management. Discover why this method works well for Filipinos and follow our step-by-step guide to start using it today️.
The snowball method is a simple but effective way to pay off multiple debts. When you have several loans, it can feel overwhelming because you’re not sure where to start.
👉 The snowball strategy gives you a clear starting point: focus on your smallest debt first, putting bigger payments toward it while still making minimum payments on your other loans.
Once that smallest debt is cleared, you move on to the next smallest, just like a snowball growing as it rolls! This technique helps you build confidence as you pay off your debts one by one. Keep going until all your debts are cleared, boss!
It’s no secret that Filipino households juggle a lot of everyday expenses. In 2020, the average household size had 4.1 persons. Some major family expenses like bills, groceries, and tuition fees, can quickly add up. When these pile up like a snowball, the stress and pressure to manage debt grow with it.
That's why the snowball method works well for Filipinos dealing with financial challenges. By focusing on paying each debt little by little, your payments start to “snowball,” growing bigger over time until you finally pay off your last debt. Here’s why this method is effective for Filipinos, boss:
As you move from one small debt to another, you can quickly see a clear result. Whether that’s a credit card balance, a gadget installment, or an overdue payment on your cash loan, these small debts still cause stress and worry.
By using the snowball method to slowly pay off your debts, you can celebrate quick wins. One less credit is always a win, boss — no matter how small! Each time you clear up a debt snowball, you feel more mentally prepared for the bigger ones, making the whole journey easier to handle.
Managing debts from left to right can be tricky and confusing, especially since there are different due dates that you need to remember. The snowball strategy gives you a clear game plan: it requires you to focus on one debt at a time.
For example, you can prioritize paying off a huge chunk of your child’s tuition while making minimum payments on your credit balance or phone installment. By setting priorities each month, you become more mindful of your expenses and where each peso is going.
At the core of Filipino culture are strong family ties. Often, this means extending financial support. Whether that’s giving your children or niece allowance for school, or lending money to your cousin who’s in a tight spot this month, Filipinos always find ways to stretch their budget to help the family, even at the expense of their own needs.
By paying off small debts one at a time, you can take back control of your finances. Instead of giving all your funds at once without leaving any for yourself, the debt snowball method allows you to free up some room in your budget. So, you can continue helping your family while still leaving a share of funds for yourself.
To use the snowball strategy to pay off your debts, follow these steps:
Write down every product loan, cash loan, bill expense, or utang that you need to repay for the month.
Example:
If your monthly income is ₱20,000, and your budget for debt repayment is ₱10,000, put the biggest amount on your washing machine installment. For example, you can reserve ₱3,000 for this.
It's important to set aside money to make minimum payments on all your other debts every month. This keeps your account active and avoids late payment fees. For example, the distribution of your monthly payments could be:
Debt | Payment | Strategy |
|---|---|---|
Washing machine | ₱3,000 | Snowball focus |
Phone installment | ₱2,000 | Minimum |
Electricity bill | ₱2,000 | Minimum |
Cash Loan | ₱2,000 | Minimum |
Utang | ₱1,000 | Minimum |
Sample budget for the remaining ₱10,000
Now that you’ve fully paid your smallest debt, take the money you were reserving for the washing machine and put it toward the next smallest debt, which is your phone installment (₱2,500). Don’t forget to set aside money for your minimum payments.
Each time you pay off a debt, the money you free up gets added to your next payment. This makes your snowball bigger and helps you finish all your debts faster. In time, all your debts will be cleared, boss!
Applying the snowball method can help you clear your debts slowly but surely. And even if we all have different financial situations, this strategy has proven to be effective, no matter how many payments you’re handling.
If you have multiple Skyro loans, there’s an even easier way to help you stay on track. Did you ever find yourself needing more time to pay for your product loan? Try Flexi. This payment feature lets you change your payment amount or move your due date anytime, directly inside the Skyro app.
Unlike traditional loans with fixed due dates and payment amounts, Flexi allows you to adjust your payment terms to fit your budget. You can even increase your payment if you want to pay off your loan faster. Because when life changes, so can your loan, boss! Learn more about Skyro Flexi today.
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