Originally published February 28, 2024 | Updated September 2026 | Crestine Carson
Debt is something many of us face, especially when starting a new life abroad. As a Filipino who migrated to New Zealand, I know how hard it can be to manage money in a new country. From converting my visitor’s visa to a work visa, to funding my studies to become a Registered Nurse, I’ve had to plan carefully every step of the way. Many OFWs and new migrants will recognise this story, and the good news is that it’s possible to get through it wisely.
At Pinoys in NZ, our goal is to help you settle, then thrive and prosper. One of the biggest hurdles for newcomers is taking on too much debt too soon, especially car loans. The excitement of a first paycheck can lead to quick decisions. Slow down and think ahead. Here are six tips to help you steer clear of debt pitfalls:
- Understand your debt. Know the difference between debt that builds your future, like a mortgage or student loan, and debt that holds you back, like high-interest credit cards, store finance or unnecessary loans. Always check the interest rate, fees and total amount you’ll repay, not just the weekly or fortnightly payment.
- Budget wisely. Build a budget around your income, essential expenses (rent, food, transport, utilities), money you send home to family, and any debt repayments. Include the remittances in your plan so they don’t squeeze you into borrowing later. Review your budget regularly, especially when your income, hours or rent change.
- Build an emergency fund first. Before taking on any loan, set aside a buffer for unexpected costs like car repairs, medical bills or a gap between jobs. Even a small amount saved regularly can keep an emergency from becoming a debt.
- Be careful with “Buy Now, Pay Later” and easy credit. Interest-free instalments and quick approvals can feel harmless, but missed payments add fees and can affect your credit record. If you can’t afford something outright, ask yourself whether it’s a need or a want.
- Research and compare before you borrow. If you need a loan, compare interest rates, fees, terms and conditions from different lenders, and read the contract before you sign. For personalised guidance, reach out to one of our Trusted Kabayan partners, who can help you understand your options and make sure any loan fits within your means. You can also check your own credit report, which is worth doing before you apply for any loan.
- Live within your means. Once you start earning, it’s tempting to upgrade your car, phone or lifestyle right away. Pay off existing debts first, and let your income grow before your spending does.
Debt can be a tool, if you use it wisely
Used carefully, debt can help you grow: buying a reliable car for work, paying for tools or training, expanding a business, or handling a true emergency. Used carelessly, it becomes a source of stress that follows you for years. Being mindful and disciplined is what makes the difference.
If you need to borrow because driving is a must for your job, you need tools or equipment for work, you’re expanding a business, or you’re facing an emergency, contact us for guidance. Our Trusted Kabayan partners will walk you through your options so you can make informed decisions and avoid the debt traps.
At Pinoys in NZ, we support each other so that we don’t just survive, we thrive and prosper together.
This article is general information only and is not financial advice.
Consider speaking with a qualified financial adviser or lender about your own situation.
We have a trusted Partner you can talk to.
