Survey: 1 in 3 resident dependent on borrowing

A NEW survey showed that 36.9% of the respondents claimed they relied on loans as their additional funding sources for their needs.

Of the 630 respondents in the survey conducted by the Ateneo de Davao University Research Council in June that was released Monday, 17.1% of them relied on their relatives and .9% relied on the financial assistance of government.

The survey said about 30.1% avail of loans every month and 12% are once a week, while 1 in every 10 avails every two months or as frequent as every quarter.

The top five lenders are microfinance lenders, stores, those behind the five-six schemes, friends and credit cooperatives. The survey added that 78.6% of those who borrowed used the money for personal use instead of investing it on business.

Truly Rich Club member and a financial literacy advocate Edna Villegas-Cheng earlier noted the need to be financially literate to manage expenditures properly.

She said the proper handling of finances is following the 10-20-70 principle or the abundance formula of renowned financial mentor Bo Sanchez. Under the principle, 10% of total income should be allotted for charity works or the church, 20% for savings or investments, and 70% for daily expenses.

Meanwhile, the survey added that 72.5% claimed they have enough income while 17% said their income is not enough and that 83% of the latter claimed they were making efforts to reduce their expenditures.