Now that your short term loan got approved and the cash is now at your hands, what’s your next step? I know that you have the main purpose of where to use it! So don’t be distracted on other expenses that may ruin your plan. Here are several tips on how to properly manage your short term loan!

1. Make a Budget.

If you’re not used to creating a budget before, then you should start doing it now! Having a short term loan can affect your finances. Create your monthly budget including your short term loan payment and ensure to follow it. You can list down your budget in a sheet of paper like what you’re seeing below:

Monthly Income20,000Percentage
Water payment1,0005.00%
Electricity payment1,0005.00%
Rental, apartment2,00010.00%
For education4,00020.00%
Debt/short term loan5,00025.00%

If you’re a techie person, then you can also maximize mobile applications like Expensify, Wally, and Money Monitor. There’s no standard anyway. Just do wherever you feel easy and comfortable.

2. Track Your Spending and Cut Back!

Check and track all your spending. Review your current expenses by listing down everything even how small it is. This will keep you on track and never overspend.

If you haven’t done this yet, you can list down daily expenses at first. This will allow you to check where every cent goes and adjust when necessary:

FoodBreakfast meal at the canteen (1 cup rice,1 adobo)100
TranspoPedicab going to LRT20
FoodLunch (1 cup rice, 1 ulam)100
OthersGo to mall with officemates. Had some milk tea300

You also need to watch out your spending habits. If you’ll assess the above example, you can still adjust your transpo – pedicab going to LRT (blue highlight). Maybe you can just create a time allowance and walk specially if it’s not that far.

Or you can also skip frequent going to malls with your officemates. Nope! This is not bad. But if you think your budget is limited and you have so many bills to pay including your short term loan, then you need to prioritize.

Understand your wants and needs. This won’t help you alone in paying off, but this will help you in the long run in creating a good spending habit.

3. Find Ways to Save.

After tracking your spending, find ways to save. Allot at least 20% of your monthly budget but if it’s not possible yet due to loan or big expense for bills, then you can initially assess your spending just like on our example in number two. Make sure that every little cutting back on spending will be allocated on your savings.

Your savings will serve as your emergency bank. In case an emergency happens, you have something to pull-off. You’ll not ruin your budget and accidentally spend the budget allocated especially on your short term loan.

Keeping savings will let you feel confident!

4. Create an additional source of income.

If you really think paying-off your short term loan seems hard upon assessment your budget and tracking your expenses, then maybe it’s about time to create an additional source of income. You can have a side business or a part-time job. Just make sure that it won’t affect your day or fulltime job.

Several side hustles you can try are:

  • Selling your own stuff (clothes and other things you’re no longer using). You can have some money plus you’ve got a clean and fresh cabinet or place!
  • Freelancing (if you’re good in writing, editing videos, or online teaching)
  • Selling cakes or whatever hobby you have right now. Let your friends know that you’re open to ordering!

There are so many ways to increase your income. This won’t just help you to pay your short term loan. This will also increase your monthly cash that you can add on your savings too!

5. Be disciplined in Paying Your Short Term Loan on Time.

Be a responsible borrower! The lender helped you with your emergency so you should do the same too. Pay on time to avoid extra costs. Lenders may remind you through SMS or you can also create a reminder on your own. Set an alarm on your calendar at least three days before the due, or you can list in on your planner, or whatever medium you’re comfortable.


Having a short term loan is not bad. But you need to be responsible as well. Manage your finances. Remember you only had the short-term loan because you have an emergency. Avoid being caught and be in serious debt!

May these ways help you finish paying off your short term loan smoothly!

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