We all try to avoid debt, and that's totally fine. You have peace of mind knowing that you don't owe anyone anything, and you're undoubtedly in the green financially. But while this is your best case scenario, there will be times when you'll need to borrow money—and suprise there's actually nothing wrong with that.
The concept of utang in itself is not a bad thing when the debt is managed properly. In fact, governments and companies borrow money from people—that's where bonds come in. When it comes to personal finance, a Huffington Post article notes that there is good debt and bad debt. Jeff Burke, a financial planner and the owner of 7th Street Financial, explains in the feature: “Debt can make sense when it is targeted toward an investment in yourself, an opportunity to increase earning power or using that leverage to purchase an appreciating asset.”
Appreciating assets include real estate (because people usually need home loans to acquire them). Cars are often seen as things that depreciate overtime, but when they're treated as an investment (such as how vintage cars are) or if they further your goals and offer you other opportunities in the form of jobs and businesses, then your car loan is actually good debt.
These kinds of loans are done through banks. FN's Loan Calculator can help you see which terms suit your finances. The key is to find the best rates and pay within a reasonable period so that you don't get stuck with your utang for too long.
This brings us to credit building. Even your credit card debt can be good debt if you pay your dues on time, as being religious with payments profiles you as a person who tries to clear her debt regularly. This allows you to borrow more next time.
Debt only becomes bad when it's borrowed money you can't afford to pay back. It's spending more than what you're actually financially capable of, and this leads to compounded interest which becomes harder to pay month after month.
So the bottomline is to not be afraid of debt, but to properly manage it. Be smart about rotating your funds. This way, you'll be able to reap the benefits of credit, without being buried beneath it.