Author: Michelle M. Zaragoza, Rose A. Arceño

Abstract: There are identified positive consequences in borrowing money. The teachers were able to support their education as well as their family members’ needs. They maintained their total well-being without being affected by financial problems. Borrowing money solves the day-to-day problems of teachers. As manifested by the teachers, their lifestyle improved in such a way that they surpassed the daily difficulties, not minding the negative consequences like decreased net pay, generated more debt, experienced difficulty in coping with monthly loan payments, and financial instability. Furthermore, it was found out that there is a significant relationship between teacher’s profile and the reasons of borrowing money, a significant relationship between the profile of teachers and the consequences of borrowing money; and a significant relationship between the consequences of borrowing money from lending institutions to the public elementary school teachers’ job performance. The main contribution of the study is to improve the financial literacy by integrating the proposed guidelines in financial decisions. Among these items are set up a budget, getting the budget back on track, get everyone in the family involved, cutting household bills and mortgage, be flexible, paying off loans and credit cards, and set a savings goal.

Keywords: Consequences of Borrowing Money, DepEd Teachers, Job Performance, Lending Institutions, Philippines.

DOI: 10.24001/ijels.2.5.20