Daily survival has become more challenging for many working Filipinos. Inflation rose to 4.1 percent in March from 2.4 percent in February due to the war in the Middle East. Prices of basic necessities, such as transportation, food, housing, water, electricity and gas, are increasing while wages remain stagnant.
Even if you might think that these price hikes do not affect your life, you are not completely safe from financial setbacks. No one is completely immune to economic shocks.
A study conducted by the Philippine Institute for Development Studies concluded that emerging from poverty did not exclude households from the vulnerability and risks of financial instability.
If a low-income household has transitioned to middle-income status, a single uncontrollable crisis (i.e., a sudden hospital admission or a typhoon) can plunge it back to low-income or even poor standing.
Poverty lingers as a possibility despite the illusion of financial stability.
Just like preparing for natural disasters, you can also prepare for sudden financial crises. Applying for a loan can sound like falling into a trap at first. There are predatory loans that will bury you with interest rates and hidden fees. However, not all debts are inherently bad. Low-cost loans exist with fair structuring.
Used wisely and deliberately, loans can be a powerful financial tool to help create a better future. They can provide a supplemental safety net for essential needs while you are actively building your emergency savings each month.
There are loans that can assist your needs without depleting hard-earned savings for education, property ownership, business expansion, or unexpected daily living expenses.
First Circle supports small and medium enterprises (SMEs) by providing business credit lines and offering salary loans to their employees.
The loans are interest-free and can be used for healthcare, education, or instant cash flow. As time progresses, the loan does not balloon since it is non-compounding, unlike traditional ones. Employees only pay a one-time convenience fee and the principal.
First Circle understands that an employee’s welfare should be one of an SME’s top priorities. Boosting employee morale can affect productivity and retention. If employees perform well, the company performs well.
Working Filipinos deserve to have comfortable and dignified lives. They should have access to consumer-friendly financing options that can improve their socioeconomic standing. By reframing financial tools not as burdens but as strategic defenses against potential risks, we can turn the illusion of stability into a solid foundation.
Workers are the backbone of our economy, but they are the most susceptible to inflation and vulnerability. Their financial health must also be considered a key performance indicator for their employers. Companies must see these efforts as an investment rather than expenses from their end.
By partnering with institutions that understand the importance of strengthening employees’ socioeconomic backgrounds, we ensure that no matter the crisis, our communities and businesses continue to move forward together.
Annabella Garcia is a sociology graduate with a background in operations for traditional banks and fintechs.
