Ka-Abag O Babag? Exploring the Lived Experiences in the Context of Financial Well-Being of Microfinance Borrowers

Abstract

“In communities where poverty is persistent, microfinance reshapes daily life—supporting households while also deepening the very struggles it seeks to ease. This study addressed a gap in existing literature, as previous research focused heavily on quantitative measures of borrowers’ financial well-being without capturing their lived experiences. Guided by Lazarus and Folkman’s Transactional Model of Stress and Coping, and Sen’s Capability Approach, it explored how borrowers interpret, experience, and cope with debt. Using a qualitative transcendental phenomenological design, fifteen female borrowers from Argao, Cebu—with at least three years of borrowing experience and multiple active loans—were purposively selected. In-depth interviews were analyzed using Colaizzi’s (1978) method. Nine major themes emerged: Living on the Edge of Survival, Carrying the Burden of Family Responsibilities, A Pathway to Relief and Improved Living Conditions, Emergence of Debt Burden and Psychological Strain, Adaptive Financial Management and Resourcefulness, Emotional Resilience and Positive Mindset, Faith and Spiritual Anchoring, Microfinance as a Catalyst for Growth, and Microfinance as a Source of Continuing Burden. Findings revealed that microfinance provides short-term relief, promotes financial discipline, and enhances capability, yet can also perpetuate stress and debt dependency. Effective coping strategies, however, enable borrowers to navigate poverty more intentionally. The study concludes that microfinance has a dual nature—acting as both ka-abag (support) and babag (hindrance)—and recommends integrating financial literacy, psychosocial support, and flexible repayment programs to foster sustainable empowerment.”