Credit card companies are probably making more money out of you than you want. Now is the right time to shift to a smarter and cheaper method of financing. Ask us! We have the answer.
According to the 2016 Euromonitor report “Financial Cards and Payments in the Philippines,” the use of credit cards has seen significant growth. Filipinos are now financing their spending more with credit cards instead of paying in cash. Additionally, for other Filipinos, local pawn shops are the quick and only available source of funds for emergencies or unexpected urgent expenses. Both cards and pawnshops provide much needed cash, but do we realize how much these money-lending institutions earn off us? Let’s break it down.
The average monthly interest rate of credit cards in the Philippines is at 3.5%. Some even entice unsuspecting consumers with a 0% interest rate, but oblige the person to religiously pay on monthly cut-off dates or risk getting charged higher interest rates. Some start juggling balances and card due dates to finance their other cards then get trapped in the vicious debt cycle of balance transfers and compounding interest charges plus other fees.
Moreover, in our country of over 7,100 islands, pawn shops are as common as ATM machines with over 18,500 shops operating across the Philippines, as opposed to in Western countries, where pawn shops are sparse and usually viewed as a last resort, “don’t-get-seen” place.These pawn shops require collateral from a borrower, but only release loans that are less than 50% of the item’s fair market value. Common items like gadgets – say an iPhone 5 that costs P15,000 to P18,000 – would be used as collateral for a loan of P3,000 to P4,000. Like credit cards, pawn shops charge a 3.5%, or higher, monthly interest rate. But the amount one would end up paying is even higher, since the interest charge would be added to the outstanding balance.
For some, these ridiculously high interest rates won’t matter when making the borrowing decision. They need money for an emergency or some other urgent necessity, the monthly payments look seemingly affordable, so they go for it.
But if you are faced with a financial situation when you need funds, know that there is now a smarter and cheaper financing alternative! When you need a trustworthy cash source for unexpected expenses, an emergency, or even funds to grow your business, or to take that dream vacation, FundKo has you covered.
FundKo is a secure online Peer-To-Peer lending platform. It connects a crowd of honest and altruistic lender investors who are ready to fund qualified borrowers at lower rates and flexible terms, to offer truly affordable monthly payments.
Through FundKo, borrowers can apply for loans from P10,000 to P500,000 for as low as 1% per month for 3-36 months. What’s more, borrowers apply without the need to put up collateral. FundKo Lenders can also loan to small and medium-sized business enterprises additional funds for their expansion, renovation, and other business funding needs.
Why is FundKo better? Using advanced technology and best practice procedures to process loans, it becomes easy and convenient for borrowers to get the maximum amount of funds they can pay for when they need it. And since enterprising individual Filipinos directly lend to fellow Filipinos, FundKo cuts out the middle men (banks, credit card companies, pawnshops). By directly connecting borrowers and lenders, FundKo removes unnecessary costs and beats unreasonably high interest rates. FundKo is a smarter and better financing alternative!
FundKo is a subsidiary of Guevent Investments Development Corporation (GIDC) – a multi-billion peso company backed by 50 years of successful business in the Philippines, so you can be sure about getting your cash and having your privacy respected.
As a bonus, FundKo Lenders get better return on investment than deposits or bank investments while helping their fellow Filipinos. FundKo Lenders are rest assured that their investments are safe as FundKo uses proven technology and experienced teams to do all the work of validating identities and creditworthiness of borrowers, disbursing funds, and collecting payments.
Break free from lousy interest rates, shift to the better way of borrowing money. Apply now for a personal or business loan at FundKo.com!
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