While the Philippines is reported to have one of the lowest savings rate per capita in the whole world, it is a well-known fact that a majority of Filipinos avail of credit - or, even live on credit - at the slightest provocation. Whether it is for emergency reasons or for special occasions such as weddings and fiestas, trust the Filipino family to look for ways and means to avail of credit, be it from a single individual or from an agency or organization. SillimanUniversity, in an effort to look into the living conditions of selected municipalities in

Negros Oriental, particularly in terms of availing of credit in their respective areas, a group of management students of conducted a mini-research survey among identified respondents, asking them pointedly whether their way of life has improved as a result of credit acquired from various sources.

Although the activity was limited to a particular group of students enrolled in a particular course, the objective was doubly met inasmuch as it promoted credit consciousness among its audiences.

While the research may have elicited some limitations in terms of coverage and the number of individuals who were interviewed, the results have proven that, indeed, Filipinos in general know their responsibilities when they avail of credit from any source - that is, to pay back the amount they have borrowed.

We differ, however, on the manner we approach our work ethics especially in relation to improving our way of life.

Highly-developed countries like the United States and Japan boost their economy through the conscious effort of the people to improve their living conditions by taking on jobs that they were trained for. In the process of their working very hard, their efforts are well-commensurated, thus, owing to the high morale of the people.

In these countries the standard of living is high and the public has money to spend on consumer goods - the things we consider luxury items in developing countries like cars, air conditioners, state-of-the-art gadgets, and other sundry things.

This is not, however, the normal course of things in Third World countries like the Philippines. Despite the abundant natural resources that the country enjoys, unemployment, underemployment, and poverty are rampant among Filipinos.

While past administrations in the national government have promised jobs for all Filipinos by the year 2000, the fact remains that until today - seven years after the promise was made - a large percentage of our total working-age population has remained jobless. Moreover, those who have not been gainfully employed live in the rural areas where, as surveys have shown, there are not too many opportunities for decent jobs.

However, because of the widespread reach of advertising, even the rural folk - including those who may not be gainfully employed - also long for the good things in life. Because they see these wonderful things associated to modern living through advertisements, they want to satisfy these needs. Aside from these, there are essential necessities in people's lives, like food, education, medicine, and the like. Without the resources to acquire these requisites to a decent life, people will usually look for ways and means to sustain these needs.

If people have money to buy or purchase goods, or use money to pay for certain services, then money is poured into the economy, businessmen make profits, laborers earn more, industry expands, more people are employed, people's buying power increases, demand goes up, and people buy more. This is the so-called "vicious circle" that is healthy for the economy.

In developing countries like the Philippines, one way of boosting the national economy would be for the advertising industry to help raise the standard of living of the people and create a market by assisting in the development of correct economic attitudes and habits among the people.

Take, for example, credit consciousness among the people. While the Philippines is reported to have one of the lowest savings rate per capita in the whole world, it is a well-known fact that a majority of Filipinos avail of credit - or, even live on credit - at the slightest provocation. Whether it is for emergency reasons or for special occasions such as weddings and fiestas, trust the Filipino family to look for ways and means to avail of credit, be it from a single individual or from an agency or organization.

Corollary to this fact is another phenomenon, which is that Filipinos do not put their money in banks. One reason might be poverty, but that may not be the entire picture. There are people who have money, but do not put it in banks. Conversely, people and this is especially true among the rural folk, necessarily do not avail of credit in banks or other lending institutions because of the stringent requirements imposed on them, aside from the roundabout procedures they have to undergo, making the process tedious for them.

It is because of such desire to look into the way of life of the rural folk, their means of livelihood, as well as their credit awareness that a group of Silliman management students conducted interviews among selected residents of Bacong, Negros Oriental. Located south of Dumaguete City, Bacong is approximately 9kms from the city proper and is considered a Class D municipality. Some of the highlights of randomly chosen interviews are those that follow. Names have been changed in order to protect the privacy of those who trusted the interviewers with circumstances surrounding their lives.

Forty-year-old Nestor Flores is a native of San Miguel, Bacong who earns a living by selling "dirty" ice cream around the municipality. His wife does not have any source of income. The Flores couple is blessed with two sons, a 17-year-old who is studying at the Negros Oriental State University and a 15-year-old who goes to Dumaguete City High School.

Because of pressing needs of the family, most especially their day-to-day expenses and tuition fees for their two children, Flores availed of credit. His first attempt was through a "loan shark" (5-6) from whom he borrowed P500 payable in 30 days. He was given an interest rate of 20 percent, which is equivalent to P100, thus he paid P600 for his loan.

Flores again availed of credit, this time from a neighbor who charged him an interest rate of five percent for the amount that he borrowed, which was P1,500. Thus, for every P100, he had to pay an additional P5, or a total of P75 as interest. However, his neighbor was kind enough to agree to Flores' request to be allowed to pay the amount in full, including interest, in 45 days. Otherwise, the entire amount should have been payable within 30 days only.

Flores availed of credit once again in a pawnshop in Dumaguete. At that time, there was yet no pawnshop in Bacong, hence, it was rather quite expensive for him to be spending for his transportation going to Dumaguete and back to Bacong. According to Flores, he pawned a ring and was given P3,800 for it. He was given an interest rate of four percent. He added that he was no longer able to redeem his pawned item.

In all these experiences, Flores shared that his availment of credit did not, in any way, improve his way of life or contributed to make his livelihood better. The family's income has remained the same. He also said he has never experienced going to banks, credit cooperatives, and other lending institutions.

The group likewise interviewed 30-year-old Danica Junsay of Buntis, Bacong. She works as a food handler in a burger chain with a branch in Bacong. She and her husband, who works in a vulcanizing shop in Dumaguete City, have three children who are all in school, aged 11, 10, and 4.

Junsay said that she applied for a loan from a credit cooperative in Dumaguete worth P3,000. However, she received only P2,700 because the interest was already deducted from the loaned amount. The terms of payment was every week, although Junsay during the interview seemed not to know the procedures and policies governing the credit cooperative. She said that even if she signed some documents, she did not know whether she was already a member or not. Her reasons for applying for a loan was to open a mango stall which, unfortunately, did not work. She was able to complete her payment of the loan.

She then availed of credit at a pawnshop with a branch in Dumaguete by pawning a necklace worth P5,000 and a bracelet worth P2,500 with an interest rate pegged at four percent. She resorted to a pawnshop because of emergency health reasons. Unfortunately, like Nestor Flores, she was not able to redeem her jewelry. Her positive outlook keeps her going, though, because Junsay said that were it not for her jewelry she would not be able to borrow money the fastest way, especially during times of emergency. Even then, the family's way of life has not improved.

The third person that the group interviewed was 27-year-old Cherrie Milio, a carinderia and sari-sari store owner, who has three staff under her employ. Her store as well as her home is located in the town proper of Bacong. She has a two-year-old child.

Like the other two interviewees, Milio availed of credit through a pawnshop with a branch in Bacong, the first and only pawnshop in the municipality. She pawned a bracelet worth P5,500 and a necklace worth P10,000. Just like other pawnshops, the interest rate for the items was four percent. She resorted to pawning her jewelry because of health problems and other emergency reasons. She hopes to be able to redeem the items because her payment is still in progress.

It is the group's consensus that the interviewees were generally aware of various ways of availing credit, especially in their municipality and in nearby areas, in this case, Dumaguete City.

While the interviewees possess the qualities of credit consciousness, especially the responsibility of repaying a loan, the problem of poverty comes in. Much as they would have wanted to pay their loans, oftentimes the capacity to pay has to be considered because of many other obligations in the family.

From the aforementioned facts, observations, and assessment, the following conclusions are made:

a) The interviewees are aware of the existence of possible and immediate means of availing of credit or loans;

b) They have not experienced applying for a loan in banks or other major lending institutions because of the stringent requirements involved, thus, delaying the process of immediately availing of credit;

c) The reasons oftentimes given in availing of credit are health, emergency, school or tuition fees, and day-to-day needs, in this order;

d) Despite availment of credit, living conditions among the interviewees have remained the same, without considerable improvement;

d) Pawnshops seem to be very popular among the rural folk essentially because it is most accessible to them, as well as being the fastest means to avail of credit;

e) The interviewees are generally conscious of their responsibility as good borrowers, but because of poverty their capacity to pay is affected;

f) Generally, the interviewees are not ignorant of the ways of availing credit; they just need to be educated of other legitimate means of borrowing money.

All is not lost on these rural folk in terms of economic development.

Through the potent power of mass media, these channels of communication can be utilized to educate the Filipino in economics, credit consciousness, and adapting the savings habit through banking institutions, doing away with the so-called "piggy bank mentality" of many of our countrymen.