I’ve recently read a news article about credit card debt in the Philippines reaching “critical risk” levels, and it struck a chord with me. It reminded me of a challenging time that shaped how I handle money now.
In my 20s, I carried over ₱100,000 in credit card debt. I was young, new to the workforce, and didn’t know any better. I didn’t have an emergency fund. I leaned on my card to cover the gaps in my income from car repairs to bills. And it didn’t help that I also used it to fund my misguided shopping habits, spending on things I thought I “deserved,” even when I couldn’t really afford them.
The cycle was brutal. Interest piling up, payments I could never seem to get ahead of, and the constant anxiety and dread of opening my monthly statement. I felt trapped. Until one day, I’d had enough.
This is the story of how I broke free from that cycle, what I do differently now, and why I understand firsthand how easy it is to fall into credit card debt, and how possible it is to get out.
What’s Really Behind the Credit Card Debt Crisis
According to Singapore-based fintech firm Roshi Pte Ltd, the average Filipino credit card borrower now owes more than four times their monthly income. That’s a staggering figure, and it highlights how debt builds up for different reasons.
For many, credit cards become a lifeline for survival. They’re used to cover bills, emergencies, or the everyday gaps when income just isn’t enough.
But debt also grows from another force we’re all familiar with: consumerism. Flash sales, upgrades, and “add to cart” culture make it easy to spend beyond our means. Social media only fuels that pressure to own more, look the part, and keep up with others.
Credit cards make saying yes in the moment effortless, but they don’t make the consequences any easier. When the statement arrives and the balance keeps growing, the emotional weight of debt becomes hard to ignore.
How I Got Out of ₱100K in Credit Card Debt
Paying off ₱100,000 in credit card debt didn’t happen overnight. It took discipline and a shift in mindset. Here’s what helped me most:
1. I stopped using my credit cards completely.
This was my first step. When I decided I was done, I cut the cards immediately and committed to living without them. I needed to stop adding to the problem. It was hard at first, but it gave me space to reset. I spent the next couple of years paying off my balance, and lived without a credit card for a couple more years after that.
2. I tracked my spending honestly.
I used a simple Google Sheet to make a budget and track every expense. Seeing the numbers helped me notice patterns, understand my spending habits, and make better decisions.
3. I built an emergency fund.
This was really important. An emergency fund gave me confidence and stopped the cycle of borrowing for every unexpected expense. When I completed my emergency fund, I remember the moment with a sigh of relief.
4. I paid more than the minimum.
Whenever I had extra income, I added it to my credit card payments. I followed the snowball method and paid off the smallest balance first. It gave me momentum and motivation to keep going.
5. I accepted that it would take time.
There were no shortcuts. It took me more than a year to pay it all off, but each small win gave me hope. Slow and steady really does work.
How I Use a Credit Card Today
I made myself a promise: no credit card use until I had built a solid 12-month emergency fund. That fund became my foundation. And only when I felt truly ready with systems, habits, and a buffer in place, did I start using a credit card again.
Now, I have a credit card again (just one), but only because I feel equipped to handle it responsibly. I use it strictly for planned expenses that I have already budgeted for. That usually means subscriptions I use, online travel bookings, concert tickets (often card-only), or bigger work purchases like a laptop upgrade.
I use my card for convenience and to take advantage of rewards. I never treat my credit card like extra income or to cover gaps like I used to. I always pay the full balance on or before the due date every month and make sure every swipe fits into my actual budget.
For example, when I recently bought a new MacBook Air, I transferred the full amount to my card ahead of time before making the purchase. I know I’m capable of paying it off, but I still want to avoid tricking my brain into thinking I have “extra” money that doesn’t actually exist. My credit card is now a tool I use on my terms, not a fallback when things go wrong.
A Mindset That Supported Me: Practicing Minimalism
Minimalism wasn’t my main strategy for paying off debt, but it supported everything I was trying to do.
It helped me pause before buying. It helped me recognize the difference between needs and wants. And it reminded me that I don’t have to upgrade or replace things just because they’re not trendy or new.
I started asking better questions before spending:
- Do I really need this?
- Is this purchase solving a real problem or just filling a moment of boredom or stress?
- Will I still value this next month?
You don’t have to go full minimalist to feel the benefits. Sometimes, simply slowing down and being more intentional with your money can change your financial life.
Key Takeaway
Credit card debt doesn’t mean you’ve failed. It often just means you’ve been doing your best without the right tools or guidance. The good news is that change is possible. With a little structure and support, you can take back control on your terms and at your own pace.
Action Step
If you’re currently dealing with credit card debt, here are three small but powerful steps you can try:
- Stop using the card completely while you work on a plan.
- Open a separate savings account, preferably with a digital bank, and begin setting aside money to establish your emergency fund. Start small and work your way up.
- Track your spending to understand where your money is going. You can’t plan what you don’t track.
Progress doesn’t have to be fast. It just needs to be steady. If you’re working on paying off credit card debt, know that you can get to the other side, and it’s worth it. Life feels lighter, freer, and more in your control once you’re no longer carrying that weight.
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