We all have needs. There are stuff that can only be acquired if we have money in our pocket. Some are blessed to have more than enough, but some lack of it. We need money to buy things to sustain us every day to provide for our family. But what about those who don’t have anything, even a single penny. What are they going to do? Where will they go?
People tend to buy things that they don’t need. That is why some are tempted to borrow money because they think that’s the easiest way to get hold of something. Why would anyone take the chance and incur debt? Truth is there are many reasons people take on debt, some within our control, and some outside our control; some are choices we make, and others are driven by circumstance.
This practice exists in our organization. Most of our soldiers incur debt thru finance units and lending institutions. If you take a look at someone’s payslip, you can see three loan deductions that are payable for up to three years, some for five years. And the sad thing is our soldier’s net take-home pay is no longer enough to provide for their everyday needs.
Loan dito, loan doon. Is this a good practice? Absolutely not.
In 2008, a memorandum was published banning new soldiers to avail loans and other measures. This was crafted due to the violations of the existing policy that an officer, enlisted personnel, or civilian employee should have served at least one year or more after the date he/she has joined the Philippine Army before he/she is eligible to apply for loans.
It has been observed that excessive accumulation of loans generally promotes performance mediocrity, degradation, poor motivation, efficiency, and personal problems concerning family relations. Heavily indebted soldiers are more prone to violate good order and soldiery conduct.
We discourage our soldiers from incurring excessive debt or loans. We consider their situation; however, we have to make sure that the very purpose of why they will apply for a loan is really to meet their needs and not just to satisfy their wants.
Poor money management, compulsiveness, pride, necessity, reduced income, divorce, gambling, and limited savings are just some of the reasons our soldiers accumulate debt.
With that, the Army rescinded the previous policy on the loan application. To enhance the system of our control measures and minimize if not eliminate the excessive loans of personnel and likewise help them uplift their standard of living. A soldier who now applies for a loan should have a Net Take Home Pay (NTHP) of P6,000.00 after all authorized deductions have been taken off, excluding the Subsistence Allowance (SA). Officers, enlisted personnel, and civilian employees must have served for at least one year to be eligible for loans. Also, soldiers are only allowed to contract loans payable for not more than three years. They can apply for reloan if they have already paid 70 percent of the total amount of their previous loan.
This policy will limit them from borrowing more than what they need, and that they can still receive a part of their salary during payday.
Getting into debt is not a good idea. Debt essentially makes us a slave to the one who provides the loan. At the same time, in some situations going into debt is a “necessary evil.” As long as money is being handled wisely and the debt payments are manageable, you can take on the burden of financial debt if it is necessary.
The Philippine Army adopts a stricter loan application process to help our soldiers manage their salary or finances well. That is one way of teaching them to set priorities.
If money is handled well, our soldiers will have good relationships with their wives/husbands, their children, co-workers, and they can even be more effective in their job. We can expect quality performance from them.
To our soldiers, the LOANdon Syndrome has a cure – you. Believe that it is possible to live without debt. Just set your priorities.
Have a debt-free, stress-free life, soldier.
