Expect clear examples, quick calculations, and a realistic weekly system you can follow: stop new debt, lower interest costs, restructure payments, and grow an emergency fund at the same time.

If you are paying multiple loans, using credit cards for monthly expenses, or saving “when there’s extra,” this article will give you a cleaner plan you can execute starting today.

Saving While Paying Off Debt

The Debt-Free Wealth Strategy Expert Financial Stewardship by David Angway, RFP.

[0:00] – How to balance saving and paying off debt? Mastering the "Panalong Diskarte."

[2:30] – How to audit your personal finances? Facing the truth about your financial status.

[5:15] – Should I save money or pay off debt first? Solving the priority dilemma.

[8:45] – How does the debt snowball method work? Building momentum with small wins.

[12:10] – How to get out of credit card debt? Why high-interest rates kill wealth.

[15:30] – What is a starter emergency fund? Creating a safety net to stop new debt.

[19:05] – How to make a budget that actually works: Habits for tracking cash flow.

[22:40] – How to stop lifestyle inflation: Keeping expenses low as your income grows.

[26:15] – How to consolidate high-interest loans: Technical strategies for debt management.

[30:50] – Why hire a Registered Financial Planner (RFP)? The benefits of expert advice.

[33:20] – How to shift your money mindset: Developing discipline for long-term stewardship.

[35:15] – Where to find David Angway on social media: Join the community on YouTube and TikTok.

Panalong Diskarte: Saving Money While Managing Debt

Guests: David Isaiah Angway (Registered Financial Planner)

Hosts: Pam and May

May: Welcome to "What’s In, What’s Hot." Today we are discussing the proper way to save money while reducing debt. Who doesn't have debt these days? Even young professionals like Pam, who looks like she just graduated, likely face these financial pressures.

Pam: Many people start businesses while they are still students, so they have likely experienced debt at one point or another. But are we managing our debts and limited income correctly during this time of inflation and financial pressure?.

May: It is vital to learn how to save even when we have existing loans. How can we achieve financial security and gradually reduce our debt without sacrificing our future?

Helping us today is Registered Financial Planner David Isaiah Angway. Welcome to Panalong Diskarte, David!.

David: Thank you so much for inviting me, Pam, and May. Good morning to everyone watching, and Happy New Year!.

May: As a financial planner, do you have debts yourself?.

David: I do. I have a business loan and a personal loan. Almost everyone has a loan. Research shows that most Filipinos have debt, and a study from October found that the average credit card loan for Filipinos is around ₱94,000.

Pam: Is that ₱94,000 average for just one credit card?.

David: Yes, that is for a single card. If you have multiple cards, that debt grows. Our economy is driven by consumption, and many of us fall into a "budol" (impulse buying) cycle every month because of shopping apps, free shipping, and discounts.

May: For someone with a large debt and a modest salary, how do you find a balance?

David: There are three main strategies:

• Identify the Source: Think of your finances like a bucket. To fill it, you must first plug the holes. Identify where your money is leaking and cover those "holes" so you aren't always at a zero balance.

• Increase Income Streams: I always tell my clients that "skills can pay your bills". The more skills you have, the more you can afford. You don’t necessarily need to sell tangible products; your skills are enough for a side hustle.

• Reskilling and Upskilling: By 2026, AI is a major competitor for jobs. However, human-centric roles—like a reporter doing on-the-spot reporting with follow-up questions—cannot be easily replaced by AI. Double down on what you are good at.

Pam: Speaking of loans, how should an individual prioritize which debts to pay first?.

David: First, consolidate your debts. Don't rely on "mental accounting" or memory; use a notebook, planner, or a smartphone app to track everything.

• Prioritize Interest: Focus on the debt with the highest interest rate first. For example, credit cards can charge an average of 3% per month.

• Communicate: Whether it is a bank or a neighbor, you must talk to them. Institutions hate it when you ignore their calls. If you communicate, they may offer a restructuring program to stretch out your payments. Sometimes, collection agencies will even settle a ₱100,000 debt for ₱30,000 to close the account.

Pam: How important is discipline and control? Is it really necessary to have 11 credit cards?.

David: Lifestyle inflation is a heavy burden. Research shows we make about 30,000 micro-decisions every day, and our willpower and discipline can get exhausted. To stay on track, I recommend:

• An Accountability Partner: Find someone to nudge you when you are overspending.

• A System: Use lists and planners to avoid impulse buys.

• Learning to Say "No": We are often addicted to saying "yes" to notifications and friends who encourage spending.

May: What if you lose your job but have scheduled payments like insurance and subscriptions?.

David: This is why an Emergency Fund is crucial.

• Employed: Aim for at least 3 months' worth of expenses.

• Freelancers/Business Owners: Aim for 6 to 12 months because your income is variable.

• Annual Projections: Don't just budget month-to-month. Look at your year as a whole to see your spending patterns.

May: What about insurance? If you stop paying, it lapses, and the money is wasted

David: There are different types. Term insurance usually lapses after a 30-day grace period. VUL (Variable Universal Life) has a fund component that can help sustain the insurance for a while, but it can be depleted depending on market forces. Always talk to your financial advisor for guidance.

Pam: Some people feel overwhelmed or shy about hiring a coach. Is it expensive?

David: Many Filipinos are shy about asking for help. You can start by joining Facebook groups or reading Reddit posts to equip yourself with knowledge. When you're ready, you can hire a professional for holistic advice. There are different business models for coaching:

• One-time session: A 1-2 hour consultation.

• Program-based: A 3-month guided program.

• Subscription-based: Annual audits of your finances. Some coaches even offer free advice if they see you are heavily burdened. Just ensure they are licensed so they are held accountable for their advice.

May: You mentioned using skills to earn extra. Can you give examples for those who don't know what their skills are?.

David: * Digital Skills: If you can design YouTube thumbnails, content creators need you.

• Monetizing Hobbies: If you are good at singing or giving relationship advice, use free platforms to monetize that.

• Service-based: If you are good at laundry, cooking, or cleaning, turn it into a subscription service for your neighbors. Sign a contract to handle their needs for a year. If you get too busy, you can even hire others to help, effectively starting a business.

May: We’ve learned so much today! David, where can people follow you?.

David: You can find me on Facebook (David Angway), my website (davidangway.com), YouTube, LinkedIn, and TikTok. I don’t dance on TikTok; I only give sound financial advice!.

May: Thank you, David! Happy New Year!

David: Thank you, May and Pam. Happy New Year!.