Many people think that Overseas Filipino Workers (OFWs) has a lot of money since they are working abroad. But the truth is some of them are also in debt while abroad and worse, sent to jail due to unpaid debt.
Because of this Labour Attache, Ofelia Domingo advised OFWs to borrow money at home to avoid jail term in other countries especially when you are in the Middle East.
According to Domingo, 15 out of 205 Filipinos that put in prison in Dubai and Ajman jails are due to non-payment of personal loans or bounced checks.
Domingo said the following are main reason of OFWs debt;
- OFW lost their job
- OFW opened a business that went bankrupt and went further into debt
- They need to send money home for family needs or for emergencies
The official reiterated that Filipinos have an alternative borrowing money in the UAE or in abroad that does not put them at risk of imprisonment due to unintentional non-payment of loans.
An example of this is the OFW Reintegration Program of OWWA and Land Bank of the Philippines for those who wants to pursue business where they can loan from P100,000 up to P2 million pesos.
For OFWs who wants a loan for a house, there's a Pag-IBIG package for OFWs who are active members.
They can also apply for a loan in Social Security System (SSS).
“If they need to take a loan, it’s good to borrow from Philippine government entities or banks because, under Philippine law, no one can be imprisoned because of debt,” Domingo said. “They can apply for the loan here and processing will be done in the Philippines.”
OFW MUST SAVE
Balanga, Bataan Bishop Ruperto Santos, chairman of Catholic Bishops’ Conference of the Philippines-Episcopal Commission on Migrants and Itinerant People advice OFWs to save money and avoid debt.
SEVEN SAVING TIPS FOR OFWS
According to Bishop Santos, OFW must know how to spend their hard earned money wisely, since working abroad is not permanent.
He said OFW should not spend their money on useless things and beware of "sale" and of using credit cards with a big interest in case you fail to pay your balance on a due date.
9 TIPS TO BECOME "DEBT-FREE"!
WARNING: IN SAUDI ARABIA, BE WARY OF BEING A DEBT GUARANTOR, YOU COULD END UP IN JAIL
ANOTHER REMINDER TO ALL OFWS: BEWARE OF "UTANG" IN ABROAD
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SOME QUESTIONS ABOUT LOANS, DEBTS and FILING CASES FOR NON-PAYMENT AT SMALL CLAIM CASE