Debt is not your enemy Mismanagement is How to use credit without losing control

Let’s face it, most people fear the word ‘debt.’ It sounds heavy, dangerous, and shameful. But here’s the truth: debt itself isn’t the enemy — how you handle it is.

There are two kinds of debt: the kind that helps you grow and the kind that holds you back. The first builds your future; the second buries it. The difference isn’t the amount — it’s the mindset.

Many of us grow up hearing, “Avoid utang (debt) at all cost!” And yes, debt can be destructive if it is misused. But when managed wisely, it can actually become a powerful tool.

Think about it: most people can’t buy a house or start a business with cash alone. They borrow, use the money productively, and pay it back on time. That’s healthy debt.

But the problem begins when we borrow not for growth, but for gratification.

We swipe the credit card for things that fade fast: new clothes, gadgets, trips, and fancy meals. These don’t multiply your income; they multiply your bills.

That’s not borrowing — it’s bleeding.

Let me share a story. I once met a young professional who was deep in credit card debt. When I asked what happened, he said, “Coach, I just wanted to live like my friends.” He didn’t realize that many of his friends were also living on borrowed money.

Comparison is a debt trap. And the longer you stay in it, the harder it is to climb out.

So how do you manage debt the right way? Here are some principles I live by:

1. Borrow for purpose, not pleasure. If the debt helps you earn, learn, or save in the long run — like for education, business, or a home — it’s potentially worth it. But if it’s for short-term satisfaction, it’s not worth your peace.

2. Pay on time, every time. Late fees and interest are silent killers. Automate payments if you can. A small delay can snowball into months of stress.

3. Know your capacity. Don’t borrow more than you can realistically repay. The goal is freedom, not pressure. If your monthly debt payments exceed 30 percent of your income, you’re living too close to the edge.

4. Avoid the “minimum payment” mindset. Paying the minimum feels convenient — but it’s a trap. You’ll end up paying double, even triple, the original amount you owe over time.

5. Don’t mix emotion with money. Never borrow to please others or to prove something. Pride can’t pay interest; discipline can.

The truth is, debt doesn’t destroy people — disorder does.

When you learn to manage debt with discipline and purpose, it stops being a burden and becomes a bridge. A bridge to education, to business, to stability.

So the next time you think about borrowing, pause. Ask yourself: Will this bring me closer to freedom — or farther from it?

If it leads to growth, plan it. If it leads to stress, avoid it.

Because real success isn’t about avoiding debt completely — it’s about mastering it.

(Chinkee Tan is a wealth coach, author, and motivational speaker helping Filipinos achieve financial peace. Follow him on YouTube and Facebook @ChinkeeTan for more money lessons, motivation and daily inspiration.)