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Personal Loans 101: Making Sure You’re Ready For A Personal Loan

Taking a personal loan can seem like a simple and effective way to move ahead in life, but you need to look at your goals and your finances so that you ensure you’re taking your loan for the right reasons, and so you don’t fall behind on your loan payments. Here are 3 things to consider before you apply for a Citi Personal Loan.

  1. Monthly Debt Obligations

    When planning your personal loan, take into consideration your monthly spending and any outstanding debts you currently have. Perhaps you have rent for housing, or a monthly car payment; how much liquid cash does that leave you to be able to pay your debt obligation for your loan? Would you have to adjust your monthly spending habits to be able to make your repayments? These are important things to map out so that you can ensure you’re not delinquent on your payments. For even more tips on managing debts and finances, you can read about them here.

  2. Repayments and Auto Debit

    We get it, there’s a lot of things going through your mind at any given time. We have schedules, commitments, and friends and family to worry about. So we can understand if your monthly loan repayment may slip your mind. When taking a personal loan, you are required to make monthly repayments for the duration of your loan. That’s why it’s important to always have a reminder to make your payments on time so you don’t incur any penalties or hurt your credit score. That’s why we always recommend setting up an auto-debit of your minimum monthly required payment, and we also encourage you to pay as much as you can in any given month if you are particularly liquid at any given time.

  3. What do you want to get out of your personal loan?

    If you’re taking a personal loan, there must be a good reason for doing so. Therefore, you should be asking yourself the question: what am I getting out of this? What goals do you have outlined for yourself, and how will taking this loan get you closer to reaching those goals? Maybe it’s an investment in yourself or your business that will yield higher future income, or maybe it’s just a cash advance you need to make an improvement in your life. Either way, you need to think about your ability to repay the loan, and if the loan is intended to boost your personal income, at what point will you start to see returns on this loan and how will you be able to make payments on it in the short-term.

    If you’d like to learn more about Citi Personal Loan, please visit our loan page here

This product is sold by Union Bank of the Philippines, using certain trademarks temporarily under license from Citigroup Inc. and related group entities.

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