Credit card debt can become a serious concern, especially during times of financial instability, as is faced by the individual in the provided query. In the context of Philippine law, it's essential to understand both the rights of the credit card holder and the obligations that come with credit card debt.

Question: What are my rights and obligations if I am unable to pay my credit card debt and receive a demand letter from the creditor?

Answer:

Communication with the Credit Card Company: If you find yourself in a situation where you're unable to pay your credit card debt, the first step should be communicating with the credit card company. Many companies are willing to negotiate payment plans or temporary arrangements, especially if the inability to pay is due to circumstances like loss of employment.
Understanding the Demand Letter: A demand letter is a formal request for payment. In the Philippines, creditors will often send this as a preliminary step before taking legal action. It's essential to respond to this letter promptly, explaining your situation and proposing a feasible payment plan based on your current circumstances.
Legal Obligations: Under Philippine law, failure to pay credit card debt can lead to legal action. However, imprisonment for non-payment of debt is not allowed under the law. Creditors can file a civil case to recover the debt, but they must follow proper legal procedures.
Seeking Legal Advice: If you're unsure about your rights or the best course of action, it may be advisable to seek legal advice from an attorney who specializes in debt-related matters. Philippine law provides certain protections for debtors, and a legal professional can help you understand your specific situation.
Commitment to Pay: As expressed in the query, a willingness to pay the debt when financially able is important. Documenting this commitment and following through when circumstances allow will often lead to a more favorable resolution with the creditor.
Understanding Collection Practices: The Philippine government has guidelines that regulate collection practices. Unfair or abusive collection practices can be reported to the appropriate regulatory bodies.

In summary, if faced with a demand letter for credit card payment in the Philippines, open and honest communication with the creditor, understanding your legal rights and obligations, and possibly seeking legal advice are essential steps. Always act in good faith, and don't hesitate to reach out to a legal professional if needed.