5-6 To Pay The Rent
No doubt that recession had hit the Philippines, I agree to the documentary show that loan sharks or commonly called 5-6, pawnshops and other same business are continue flourishing during global crisis in the Philippines.
Last year, when recession was predicted, some was already prepared, some didn’t bother to save and sad to say there are some that didn’t understand what will happen (already happening) in time of recession. I belong to the first group but no matter how I save for rainy days, business is not doing well. Savings are not enough to pay for the taxes, license, permits, utilities, salaries and other expenses. I assume, blog income is also affected to most pinoy bloggers.
Few years ago, I told my mom that I have plans of investing my small savings to lending. She told me that a 10% interest is against the bible. I don’t know if its true but never bother to continue with my plan. Then when I saw that documentary saying that its in the law that maximum interest is 12%. Correct me if I’m wrong here. But… Arggh! That was too much.
Pawnshop offers as low as 4% per month but since its a pawnshop, your valuable item serves as your collateral. If you haven’t paid in time, your collateral will be gone. What if you don’t have collateral? 5-6 is the solution for the immediate need of money.
Let me share this. One of our tenants continue borrowing money (for years) from different people to pay her rents and other business expenses until such time that she can’t handle paying them all and including us. She paid her taxes and business permits first, forgetting her obligation to pay the rent. We don’t want to play hide and seek anymore, we have lease contract and signed written agreement in Barangay Hall. Her business will be closed within the week for not paying her rent of 4 months. Actually, she asked for one week allowance to pay starting today. We could have use the money for our own obligations but we end up using our savings.
I’m hoping that she can settle this. Otherwise, there’s no income to vacant commercial establishment. If business is not doing well in our place, then its hard to choose the tenants on a first come, first serve basis.
Categories: EntrePinoy Tags: 5-6
