Help! 3 Ways To Get Emergency Cash in Singapore

Help! 3 Ways To Get Emergency Cash in Singapore

Emergencies can happen to anyone and at any time. It may be important for you to consider where you can get your quick cash from when a sudden need arises. Certainly, you would have to calm yourself first. This way you will be able to figure out a way and obtain your funds. You will be able to easily evaluate your options and find the best solution to your financial challenges.

Among the below-listed options, you may need to consider the one that would be more accessible to you.

Line Of Credit Or Credit Line

The line of credit is a pool of money readily on hand for you for easy access. Like the credit card advance, you simply need to go to your nearest ATM and withdraw the amount of money you require. This amount can be used with any intention that you have, at any time you require it.

How It Works

You will be required to visit your bank and ask for a “line of credit” or credit line. The bank will need you to give the required documents for them to assess your creditworthiness. While this is being done, you will have to wait for some days to obtain the approval.

Limitations

Although you might say that you have instant access to cash, you will, however, have to make an application and then wait for some days.

Once your application has been approved, you are issued an ATM card. This is what you will use to have access to the money on your line of credit account. You are able to borrow any cash amount without attracting withdrawal charges. However, it is important for you to recognize that you will be charged an annual charge whether the money is used or not.

You are required to have a good credit rating for you to make use of this service. This is because most banks are risk averse concerning loans. Some banks will even require you to offer collateral while other banks simply offer this loan facility to individuals who have to be their customers for a long time.

Help! 3 Ways To Get Emergency Cash in Singapore

Credit Card Cash Advance

When you get a credit card, it means that you also hold the key to accessing quick cash from all the affiliated ATMs within the island. It is important for you to be aware that all the cash you withdraw will be charged directly to your credit limit. It’s very easy; you will require entering in your one-time PIN. Please remember that you need to make withdrawals within your cash advance limit. This amount is often lower than your credit limit on your credit card.

Limitations

This service is only available for credit card holders whose credit standing is good. Meaning, that you need to be able to repay your credit card bills for the month on time.

The cash Advances are a short-term loan facility from banks. You should expect high-interest charges starting from that day you make the cash withdrawal. Cash Advance interests range from 28%-29.9% for each year.

You need to be aware that cash advance interests are compounding. That means that interest is charged on the existing balance and not on the withdrawn principal loan amount.

The more time you take in settling your cash advance, the more you will end up paying. This might also drag down your credit score as well.

Help! 3 Ways To Get Emergency Cash in Singapore

Instant Cash Loans

When you are in need of emergency cash payday loans issued from registered moneylenders are among the best options. Often times the loan process is a lot faster compared to that of bank’s personal loans.

Most loan companies in Singapore often offer short-term loans which are can be paid either each week or on a monthly basis depending on what you prefer. You can also make use of loan calculators to assist you to get an idea of the amount of money you can borrow. This will also help you know the interest charged and the monthly instalments as well as the loan tenure.

There are some moneylenders who work online to process loans. This means is faster since the process takes from 30 minutes to about 24 hours.

Limitations

You need to be very careful when selecting a moneylender. Ensure you borrow from registered moneylenders by checking the Moneylenders’ Registry found in the Ministry of Law’s official website.

Although moneylenders are helpful during emergencies, there are loan sharks who act as if they want to assist you financially. They, however, end up sucking on your finances. Discover ways of spotting loan sharks to help you avoid falling for their scam.

Conclusion

When you are considering accessibility to loans, personal loans may be your best option. When you are facing an emergency, credit cards might be used without paying much attention. And the inability to repay its monthly dues on time may well put you into further financial distress.

A line of credit requires that you have a good credit record as well as have a credit line account on hand to be able to make use of. The process of opening your credit line account can take some days. On the other hand personal loans will only take hours for you to be able to have the ready cash in your account.

When you are applying for emergency cash, ensure you learn the advantages and benefits of the options available to you. It is advisable that you shop around for a moneylender that will offer you the best solution even with the pressure the urgent situation may have.

And regardless of what the reason for your payday loan may be, make certain that you take the time to read all the conditions and terms to avoid making mistakes. Although there is an urgent need for money, you should not allow this urgent need be the cause of your financial ruin.

In addition, it’s still suggested that you keep emergency funds. Although it is helpful to get ways for borrowing cash, having ready money savings is certainly a lot more helpful for you.

Death Of A Breadwinner: What Happens When Household Income Is Not Enough

Death Of A Breadwinner: What Happens When Household Income Is Not Enough

Loss of a dear one is not easy on anyone. In most cases, many people often find themselves unprepared as soon as it occurs. As most people mourn the loss, it’s only expected that most will wish to give their dear one a befitting send-off. This can be a respectful and simple wake as well as a funeral. This will be as meaningful as a way to express their sorrow and also pay their respects. This can be helpful for you in dealing with the departure on an emotionally level.

How To Cope With Loss

With the death of the family’s breadwinner, having to confront the sudden cut of the major source of your household income might appear overwhelming. This is especially so when you are dealing with this loss emotionally. This means that you may have a number of financial matters that you need to quickly attend to before it escalates into an impossible situation.

Death Of A Breadwinner: What Happens When Household Income Is Not Enough

Below are a number of financial suggestions to assist you during this challenging time:

Financial Adjustments

You may consider starting by making adjustments to your expenditure and budget help you adapt to this change in your home finances. You will also need to review your existing lifestyle as well as your financial goals. At the same time be ready to lower several of your expectations. This may be the time for you to tap into the emergency savings to help tide you over the difficult period.

Talk To Your Lawyers

When it happens that your dear one left a Will, be sure to speak to the executors to make sure there is a smooth allocation of the estates to you and relatives. You might have to do a formal transfer of any assets as well as existing investments to be under your name. Be sure to speak to the banks and moneylenders to recover the money from your joint or their personal bank accounts. When you are a chosen nominee to their CPF savings, Singaporean CPF Board (CPFB) certainly will contact you for the smooth transfers.

Handle Any Debt Swiftly

If you have any existing personal loans or debts, make sure that you get in touch with the moneylenders right away and see what has to be done to handle the debt. If the amount is manageable, do consider taking a personal loan to consolidate all the debts into one so that repayments are consistent and easy.

Look Into Insurance Claims

Take the time to consolidate all their insurance policies as well as confirm whether there will be any payments following the death. Also be sure to confirm the nominees to these policies are. Thereafter, you can submit a claim to their insurance companies. when it happens that your loved one had an insurance policy under the Protection Scheme for Dependants’ (DPS), you could get in touch with their insurer (this can either be NTUC Income or Great Eastern’s Life) to present your claim application.

Most insurance companies in Singapore may advise you regarding the claim processes as well as any extra information that you may have to present to them for the processing requirements. It is important for you to keep in mind the set time limits for making the death claim. You will need to report the claim immediately to help prevent any delays or complicated claim processes.

Once the claim has been approved, your loved one’s insurance companies often times make payments in one huge amount, totalling to the amount assured. When your dear one had an insurance policy under the Singaporean Scheme for Home Protection (HPS) and they hold an existing housing loan, Singapore’s CPFB will certainly contact you as well as your family members regarding the claim process.

Investing Your Future

It is recommended for you to look for help when you require planning for your finances in advance. Do take time to carefully think about your family’s needs as well as the circumstances. When you aren’t able to afford to lose your money that you got, you need not take these unnecessary risks. You may consider aiming for lower risk or even the conservative investments.

Although these investments come with a little lower returns, you need to be aware of the greater risk of losing the family’s capital you may face through taking higher-return products. It is also important for you to remember that every investment products, even including the insurance policies such as the products linked to investment (ILPs) as well as endowment policies. These investment products often carry a definite amount of risk. When unsure, it is best to have a chat with a professional.

Conclusion

When you have received some benefits from your loved one’s insurance payment or have been left some assets and money, you may most likely be trying to figure out ways to manage the money.

Although it might seem like its a big amount of money, it’s important that you keep in mind that these amount of money is for paying for both your family’s everyday requirements as well as future needs. You may also have to take care of your aging parents (both your own and your spouse’s), pay for the children’s education as well as take care of any existing personal loans.

Even under such challenging circumstance, it is important that you be aware that you have a significant role in ensuring that the cash lasts longer to help meet your family’s future needs.

Several Singaporeans might not have assets or existing savings to depend on. When times get tough, instead of obtaining extra cash through illegal loan sharks, approach any legitimate moneylenders for a personal loan to tide the emergency financial period. Such loans are usually quick to approve and easy to apply with simple documentation required.

What You Should Do In 2018 To Improve Your Finances

What You Should Do In 2018 To Improve Your Finances

If “saving more money” was on your 2017 to-do list, then you may well possibly still keep having it there in 2018. Even then, you may need to consider having specific and easy-to-fulfil resolutions. Such as transfer an $x to your savings account at the start of each month can be a lot more successful. This can also prove to be better than inventing a vague, big resolution that you have no clue of how to accomplish it such as becoming a billionaire.

Therefore, here are some simple things you could commit yourself to doing in 2018 that can help put you in good financial health.

Look For New Credit Cards To Sign Up For

Since your earlier favourite credit cards may possibly no longer be of use to you, it may be time to consider taking new ones. The new cards may have been modified or released, and could now be just the thing for your present spending habits.

During the New Year, you may consider it to be the best time to withdraw those credit cards that you no longer use. Thereafter you could sign up for the new ones that will be your go-to credit cards for 2018.

Hence take your time to look through a number of Singapore’s moneylenders’ card guides to help you find the ideal credit cards for groceries, cash back, online shopping, entertainment, shopping, rewards, dining, petrol and air miles.

Make Sure That You’re Suitably Insured

When you already have an existing form of insurance, it is possible that you bought these policies several years ago. For this reason, 2018 may be time for you to evaluate your existing insurance policies to make out whether they are still useful for you.

Despite the existing insurance policies, it is important for you to make sure that you are sufficiently insured. At this point, you may consider taking a personal loan or even a payday loan to help you repay your insurance. This you may have to do depending on where you at present are in life.

For example, for young working adult, it is possible that you may by now have bought medical insurance for yourself. However, for someone who is slightly less young, already married and at present expecting the first child, you need to without doubt consider taking a life insurance too.

The beginning of the New Year may be a good time for you to also properly compare your existing health insurance plan to the other offerings in the market from the other companies in Singapore.

What You Should Do In 2018 To Improve Your Finances

Cancel Credit Cards That Are No Longer In Use

The credit card world is rather fickle. One day, your favorite credit card is offering you rewards with 8% cash back on all that you might possibly buy. The following day, the banks have revamped their whole benefits programme. They have even added on a minimum spending condition that is more than you make in a month.

With these conditions, the credit card is at this time even less handy for you. You could use a payday loan to help you pay off any existing credit card debt before you can get rid of it.

Therefore, when a credit card does not serve your purposes, it may be a good financial decision to cancel it as soon as possible. You may think that there is no harm in having your credit card lie innocuously in the wallet. However, the more time you let it stick around, the higher the likelihood you will end up getting charged yearly fees unknowingly. You will even have to pay them if you are paying using Interbank GIRO. You could even fall victim to credit card scam.

Verify Whether It’s Time To Refinance The Home Loan

If it has been a number of years since you took out your home loan, it is possible that your interest rates are no longer as competitive. For this reason, refinancing your home loan using a personal loan could mean that you may have to switch to a loan that has more attractive rates, in so doing you will end up saving some extra money.

You will need to take time to consider whether 2018 is the year that you have to refinance your current home loan. You could make use of bank’s refinancing applications to help you find out.

Consolidate All Your Existing Bank Accounts

It is possible that you have over the years opened a number of bank accounts then later abandoning them. It is possible you will be leaving a little money on every account so that you wouldn’t need to pay fall-below charges.

However, 2018 could be the time for you to consider consolidating all your existing bank accounts. This means you will have to withdraw the cash from all your accounts that are no longer serving you. Thus closing these accounts along with depositing the cash in one of your accounts that you wish to continue using.

You will need to think about which account you need to be using. For the mass of the cash savings, it is an excellent idea for you to look for a high-interest savings account. These accounts need to be offering you rewards that are a little more for keeping your money in there.

When this isn’t the bank account you need to be withdrawing cash from (a number of high interest attracting savings accounts could reward you a lot more generously when you do not make withdrawals), you will want to consider maintaining a second bank account that will give you access to a good distribution of their ATM machines.

Conclusion

Saving more money may be in your 2018 resolutions, however, there are a few things to take into account to make this a reality. It is also advisable that you come up with resolutions that can easily be fulfilled. You could start by getting rid of credit cards that no longer serve your interest.

Also, take time to shop around for suitable cards befitting your current spending. You may also need to consider whether your home loan needs refinancing which may end up saving you more money. Above all ensure that you have insurance that serves you where you are in life.

3 Situations Personal Loan Makes Perfect Sense

3 Situations Personal Loan Makes Perfect Sense

The majority of Singaporeans think that taking a loan isn’t a healthy thing, as far as their finances are concerned. There is a belief that loan only interferes with you saving money because of the debts to be paid every month. To them saving a huge portion of your salary is better than having to use a fraction of it for settling debts.

Thus, budgeting can get a bit tricky because of the loan payments you have to make. Even then the question is, whether loans are at all bad and if they serve any purpose at all. That is beside helping you experience a difficult financial life situation.

Personal Loans

There are many types of loans in Singapore you may use for different purposes. Different from other types of loans, personal loans are normally of a smaller amount that you can obtain for emergency purposes. Usually, people obtain personal loans for uses like covering an unforeseen expense as their emergency savings aren’t enough.

Although personal loans work much like credit cards, there are, however, different interests and repayment terms, depending on your lender. It is for this reason that you need to have a clear understanding of all the details set in the loan contract. This will be important in ensuring that you adhere fully to the conditions and terms of the licensed moneylender.

When you end up in a tight financial spot in life, a personal loan will be useful for you. But do remember that the loan is not meant for spontaneous and low-priority spending. A personal loan has a bigger function, and below are top reasons as to the use of a personal loan.

3 Situations Personal Loan Makes Perfect Sense

Furthering Your Education

There are different reasons as to why people want to further their studies after college. Some of the reasons could be them having a strong desire to learn more about different fields. Others want to have another degree for greater career prospects. While others further their studies for them to get an opportunity for a promotion at work. With these great reasons, you will certainly have an incentive to having an additional degree with regards to a salary increase or a career promotion.

Even then, continuing your education is not exactly cheap to do. It involves a specific budget, which may possibly not be enough for individuals who aren’t earning a lot of money from their job. Luckily, taking a personal loan offers you the opportunity to continue your studies. When you decide to get a personal loan for your studies, you can choose to split the amount into terms. For example, you could consider repaying your loan for a 7 year period. This will help make your monthly instalments a little smaller as well as more affordable.

In most occasions, personal loans that have a longer tenure are generally more appealing to individuals who would like to repay lower fees for each month. However, there is also another option that you can use to shorten the time of the loan if you consider you have extra money available to pay every month. In so doing you will be saving yourself a large amount that you would have paid due to the longer tenure.

Managing Your Debts

To help you manage your debts there is an option whereby you to obtain a single loan and use it to repay all your outstanding debts. All that you need to do is get the total amount of the credit card bills you owe and then borrow an amount equal to the total debts. Once approved, you then just pay off your huge debt, then remain with a single loan that you can focus on and is easy to manage.

The main idea about this method is for you to get debt-free as soon as possible, even though you still owe money on the personal loan. On the other hand, you will have one debt to manage instead of many. With one loan you can focus on paying it based on the period you decide on, be it 6 months or longer. Through consolidating your credit, you will slowly be able to work towards being debt- free.

Maybe your only challenge would be in making the monthly loan repayments. Being alert to the exact date when you have to repay your loans is essential to prevent the accumulation of the high interest through penalties. Together with that, this can help give you the opportunity to achieve financial freedom and be debt-free sooner.

Improve Your Credit Score

A low credit score can affect your eligibility for a loan when you need it. It could be that you need a home loan you’d wish to take out when you are ready to make a purchase of a home of your own. But this may not be possible if your credit score is rather low. When you are frequently taking credit line on your credit card, it does affect your credit score rather negatively. This is one reason why some Singaporeans find it hard to access a loan when compared to others.

  • What To Do About This

The suggestion here is for you to obtain a loan, however, you make sure you repay it on time. Starting with a smaller loan is better, as this will let you make regular payments based on the period set by your moneylender or a bank. By making regular monthly instalments will also prevent massive fees because of late payment penalties. Though at the same time it will be helping you keep track of your monthly budget and expenses.

Ensure you only get a loan that you know you can repay with ease. Try and limit your loan amount to a few hundred to begin, and then ensure you pay it off in good time. This will help you in building your credit record over time, which will make you appealing to many financial institutions. Before long, the credit rating will have improved, together with your financial well-being. All things considered, a personal loan provides you with a win-win situation.

Business Loan Myths In Singapore Busted

Business Loan Myths In Singapore Busted

Business loans can be a good source of money to help you run and grow your business. This type of loan can be used in the purchase of business machinery, new premises, finance your company or for paying your employees bonuses and salary.

When applying for a business loan from licensed money lenders in Singapore, it is important that you have a clear outline of how you plan to use the money once your loan has been approved. By so doing, your money lender will be able to get a clear picture of how you intend to use the borrowed money.

When a bank has turned your loan request, you may get worried that this spells the end of your business. There are numerous business owners in Singapore who unaware of the concept of Singapore’s private lending companies. They miss this helpful option because of the misconceptions floating around. When you are in urgent need of funding for your business, but you are not sure about of how you can get your business loan accepted.

The below pointers will help you clear some of the doubts you may be having. Read through the points below to identify whether some of the mentioned ones may be preventing you from getting a business loan from legal moneylenders.

Business Loan Myths In Singapore Busted

Only Banks Offer Business Loans

Under normal circumstances, most SME in Singapore usually turns to banks as well as other similar money lending institutions for money. This could be the custom in the industry you are in, however, rest assured there are many other options for you that are worth exploring.

Besides the banking institutions, licensed private moneylenders also offer working business loans to borrowers. These moneylenders also do so with little paperwork attached to the loan application process. Once you have presented all the necessary documents, you will be able to access your loan money within a week.

Of importance is you take time to shop around for the right business loan for your business. Compare interest rates offered by various licensed moneylenders in Singapore before settling for one lender. And always make sure you read and understand the loan contract before signing. Also, make inquiries about any charges that you might incur in case of late and early payment and any other charges included during the loan processing.

A Perfect Credit Score Is Needed To Have The Business Loan Approved

Having poor credit scores can create an obstacle when you are seeking to raise money from banking institutions or through government-issued grants. A lot of Singaporean licensed money lenders will on many occasions approves your loan even when you have a bad credit score. This is provided that you are able to satisfy a number of business loan requirements.

Some of these requirements range from business size, annual profits and revenue, type of industry, business age and cash flow. Therefore other factors are considered by moneylenders besides your credit score making them a reliable option for your business loan needs. So do not hesitate to contact your nearest licensed moneylender to see what they are able to work out for you and help you meet your financial business requirements.

Lenders Prefer Giving Large Company Loans Than SME Loans

Although legal moneylenders in Singapore do profit from working with huge advances and long-term loans types, they work and are open to doing business with different types of establishments available in Singapore both small and large. Therefore do not allow this misconception stop you from looking for SME funding from them.

Look at Focusing instead on the cash flow as well as your ability to pay off the debt for you to know the amount of loan money you have to borrow. You can seek financial advice from the moneylenders to help you know the best loan type for your business they may have for you. Even then they are ready to support you on your journey as you grow your business.

All Private Moneylenders Are Scammers

Although well-meaning some well-wishers could advise you on getting your business funds from banks only, while your company stagnates and suffers from lacking a much-needed financial boost. However you should not let past, bad loan experiences cloud your perceptions of getting private funding. Once you decide to work with moneylenders in Singapore, choose reliable and the licensed lenders over the unlicensed hacks. Licensed moneylenders follow the right business practices and are professional. Through them, you are able to get your business loans under reasonable terms as well as on time.

Focus Only On Interest Rates

There are individuals who solely apply for loans based on the loan’s interest rates. Even then you are not the only one who makes such a crucial lending mistake. Although you need to choose lower interest rate loan, it is important that you consider other aspects of a loan as well. These may include processing fees, loan amount, monthly instalments, tenor, penalties on missed and delayed payments, prepayment charges, hidden charges, and loan extension plans.

Unsecured Loans Have Strict Payment Plans

The long-established bank loans often come with fixed loan tenures as well as EMI rates. Using the bank loans you will be repaying the money on a set schedule, regardless of how your business is doing. This can be challenging for a small-scale business or if you produce seasonal goods since your business has its flows and ebbs. This can greatly affect your ability to repay and it puts a strain on the finances. However, working with a licensed moneylender, you will be able to get a flexible repayment plan and loan tenures based on your business needs. Therefore choose short-term loans for passing cash needs.

It’s Hard Getting Funding For Startup Businesses

Most small businesses in Singapore, unfortunately, believe this myth. Business partners and Individuals miss out on chances of turning their ideas into reality as well as expanding their growing enterprise. Some licensed moneylenders give loans to startup businesses and may well fund your advertising campaigns. These loans will range from the short-term SME loans to the start-up loans for the salaried, self-employed and contract individuals.

How Do You Manage Your Loan Repayment?

How Do You Manage Your Loan Repayment?

Taking out a personal loan can be a scary for some individuals. Regardless of the interest being charged, both high and low, a personal loan is a debt that might burden your finances. This can create obstacles to your journey to attaining financial freedom. Even though taking loans is often the last option on anyone’s mind, there are situations that do call for the urgent need for cash that personal loan offer.

Often times people take loans for different reasons such as to finance a business project and for the need of a home. However, once received, a lot of borrowers are troubled by the matter of managing their monthly loan repayments.

Some borrowers have shocking stories to tell regarding loans stretched out till their retirement, late EMI’s, heavy penalties and even the harassing calls received from their moneylenders. The one reason that makes people face difficulties when repaying their loans is a lack of planning their finances.

By taking a closer look at the outflow planning and financial health of your money will help you settle the matter of personal loan repayments. When you have recently taken out a loan and you have a difficult time managing them, below is a short guide that will help you manage the repayment of your personal loan.

How Do You Manage Your Loan Repayment?

Prepare A Monthly Budget

Having a working budget is always useful as you work towards gaining financial freedom. Drawing up a monthly budget will greatly ease your loan repayment plan. Make sure you list down your expenses for the month as well as your income, including small details of everywhere your money goes. This will come in handy as you analyze on areas that you need to cut back on to help pay back your loan much faster. Additionally, you will get an idea regarding your savings and salary that will assist you in prioritizing your loan repayments.

A key point to take note of is ensuring that your debt commitments for the month do not go above 35% of the gross monthly earnings. Always be aware of this every time you are requesting for loans as it can be useful.

Prioritise Settlement Of The High-Interest Loans

Although the repayment of a single loan is a lot easier, lots of Singaporeans face some difficulties in managing several loans. The reason for this is that many people fail to rank the repayment of their loan even after they have drawn up a budget. The reality that you hold a debt is certainly a burden, but what adds-on the pressure are the interests charged. The higher the interests charged, the more the pressure to repay the debt. Reducing the total interests being paid on all your loans can help ease up the weight of your finances.

A helpful strategy is the use of a debt avalanche. This strategy works by you putting a maximum amount against the high-interest loans without affecting the repayments of the other loans. You will first need to list all your loans along with their interests. Then allocate the highest amount of the loan that has the highest interest such as credit card bills. Once that is cleared, move to the next using the same strategy. This strategy will help simplify debt management for you.

Increase Your Regular Repayment Amount

If you have recently received a pay rise or a fat bonus you can use it to pay off some of your debts. Gains will come in a variety of ways such as bonuses, pay hikes, profits on some of your investments, tax refunds, etc. putting some of your financial gains to repay debts can help ease your financial obligations.

Every time you have extra cash to spare, contact your moneylender asking whether you can increase your instalment. If you have accumulated a good amount, you can even consider paying off in a lump sum. However, ensure that no penalty charges are attached to your early payment.

A few loans may have conditions such as penalties on increased or early repayments, therefore be giving an advanced notice ahead of increasing regular payments. Make sure you confirm with your licensed moneylender during the contract signing phase.

Use Schemes And Investments For Debt Commitments

Debts are divided into two; bad and good debts. Debts with a futuristic monetary gain or that pay you are good. But debts that don’t bring gains to your economic value are in fact a burden. Debts like car loans and credit card payments are bad and only add a load on your financial commitments. Although using other investments or your retirement savings is typically the last choice, they might be helpful if your debts go beyond and you are near insolvency.

Furthermore, Singapore provides some schemes such as Debt Management Plan, Debt Consolidation Plan, and Debt Repayment Plan to individuals who are struggling with repaying their debts. While DRP and DMP help you to repay your amount outstanding, DCP merges all your debts owed from different money lending institutions into a single debt to help you reduce your monthly commitments. Be sure to read through the conditions and terms of your investments along with those of the schemes to ensure you get the right one.

Adjust Your Lifestyle To Help Repay On Time

Expenses and your spending practices can affect the ease with which you repay your loans. Besides the above-mentioned guidelines, there are other habits that will ease your debt obligations and bring you closer to achieving financial freedom.

Check your spending practice to identify how you often use any extra cash you get. If you, however, splash your money aimlessly instead of putting it down on clearing debt then you could do with changing your lifestyle. Work towards trimming your expenses such as movies, shopping, and dinners, so that you are able to repay your debts faster.

Balanced financial habits are great, but ensure you prioritize your obligation in alignment with your goals. By being aware of these strategies it will be easy for you to manage the process of repaying your personal loans. Maintain balance is the answer. Adopting healthy financial practices will guarantee you become debt-free and achieve financial freedom

4 Misconceptions Borrowers Have About Loans

4 Misconceptions Borrowers Have About Loans

Most people do make the use of loan from time to time. It could be a home loan, study loan, personal loan or even a car loan. Although most people in Singapore consider study loans and home loans to be essential forms of loans because of the purpose and the amount.

There are individuals who will be more undecided when it comes to getting a personal loan. Them being undecided could be coming from the idea that taking out a personal loan needs to be considered as a last result. Or it could be to them getting a personal loan means a person has got into a desperate state thus they opt to use credit cards for purchases instead.

In addition to that, there are some Singaporeans who think that it will be hard for them to have their loan request approved. For varied reasons most people don’t trust that they are able to get personal loans from licensed moneylenders in Singapore. Even with the different reasons, it is important that you take the time to understand the different ways a personal loan can work for you by contacting your financial advisor or moneylender near your area.

Below is a quick look at some misconceptions that once clarified, you will be able to see the benefits of you taking out a loan.

4 Misconceptions Borrowers Have About Loans

Borrowers Require Good Credit Scores

In Singapore, having a good credit score is certainly very important, especially when you want to get a loan from the banks. What most Singaporeans fail to consider is the fact that there are other options open for them when accessing a personal loan is concerned – accredited moneylenders.

Licensed Moneylenders maintain a credit bureau of their own. And are a bit more relaxed when they are considering your creditworthiness based on your credit score. The legal moneylenders also rarely reject borrowers loan requests unless they have past records of defaulting on their repayments.

Each Lender Provides Similar Interest Rates

It is easy for many people to think that in Singapore, most money lending institutions give their borrowers the same interest on the loan in order for them to remain competitive. But this is not even the case here. Starting with personal loans to home loans, the different moneylenders available in Singapore offer varying rates. And it should not come as a surprise that other factors do come into play in affecting which loan type a borrower will eventually apply for.

Also, it is important to note that many money lending institutions will offer varying loan interests depending on the level of credit risk status you hold. This risk status may be based on your financial needs, ability to pay off loans, as well as ability to provide collaterals. The lenders in most cases want to know the risk level you are as a borrower and they are able to recover their money once it has been lend to you.

You Have To Be Employed To Get A Loan

Although having a steady job is a requirement when getting a loan from money lending institutions, it is not the state for you to qualify for a loan. As long as you can prove your ability to repay the loan taken, most moneylenders are willing to work with you in helping you find the suitable financial solution for your needs. This is in particular regarding a lot of startup entrepreneurs as they may not have adequate savings to cover them during the startup phase, or they could risk facing cash flow problems.

For those individuals who are self-employed, they are able to request for loans provided that they present income tax statements and an official proof of income to the money lender they are dealing with.

There are useful schemes available in Singapore like Business First Loan, a collateral-free business loan offered by Singapore’s SPRING Micro Loan Programmes. This programme is intended for new business startups to be able to get funding in the fastest and in a hassle-free way. It comes with a flexible repayment time of 4 years or less. However, you will need to have a guarantor and be able to let the bank review the financial status of your company.

You Must Always Get A Loan With The Lowest Interests

As earlier mentioned, it is possible for you to have more than one feature to consider when you are thinking of taking out a personal loan form a legal moneylender. Although interest rates are equally important criterion you need to consider since it determines the general borrowing costs, there are other factors that you will have to think of. These include administrative and processing fees, loan tenor, prepayment penalties as well as the ease of your application process. All these factors will greatly affect your choice of loan type you end up making use of from a moneylender.

Given that you want to take out a loan amount of $5,000 which you intend to pay off within 3 months. It is important to consider if you would rather pay a somewhat higher interest and have the loan repaid in three months or opt to stretch out your loan tenor to about a year with which you will get a slightly lower interest rate.

Bearing these aspects in mind will help you make a better-informed choice. As you will choose the one loan that will offer you the best deal, convenient loan period and manageable monthly instalments.

Conclusion

There are individuals who will be more undecided when it comes to getting a personal loan. Their indecision could be coming from varying misconceptions which will make them hesitate to take out a personal loan. Some of these misconceptions many people face in Singapore include; you have to be employed to get a loan, borrowers should have good credit scores, each lender has similar interest and you should go for loans with the lowest rate.

Even with such convictions, it is important that you gain an understanding of what your financial needs are and what a loan can mean for your financial health. And above all always take loans you are able to repay with ease and on time.

3 Situations Where A Personal Loan Could Save Your Ass

3 Situations Where A Personal Loan Could Save Your Ass

Sometimes, getting a loan is necessary.

You need to settle some medical bills and you are low on cash? Get a loan.
Have you some bills to pay before your next salary? Get a loan.
Have you to make car payments? Get a loan.

Getting a loan is a good idea. You can borrow from friends or family. You can exchange valuables at a pawn shop for some money. These are fairly easy ways to get loans. Then there are personal loans.

The hype about a personal loan makes it sound too good to be true. It can be an unsecured loan if you go to a licensed moneylender. You can get a personal loan instantly, in cash, from a licensed moneylender. Before you go for a personal loan, however, be sure that you can repay it. That said: try your possible best not to get a personal loan. Personal loans are some of the most expensive loans to get in Singapore. The fact that they can be used for just about anything shouldn’t fool you. Repaying a personal loan can be tough. If you need money for payments on your car, get a car loan. Have medical bills to pay? You should opt for insurance. An emergency sprung up out of nowhere? Borrow from a relative. Better yet, you should have an emergency fund for such situations. Need money for a vacation? You should first decide if that vacation is really necessary at this time.

Nevertheless, there are some situations where a personal loan is necessary. In these instances, personal loans are your best bet.

3 Situations Where A Personal Loan Could Save Your Ass

Here are three situations where it is advised that you obtain a personal loan.

  1. Get a Personal Loan to Get Out of Credit Card Debt

Credit card debt is a serious issue for Singaporeans. Studies suggest that it is very easy to spend money with credit cards. This is because the money isn’t physical, i.e. you can’t see the cash. So you just make purchases and overspend using your credit cards. Another thing you may not realize is that credit bills have staggering interest rates. And every month you default on repayments means another stain on your credit report. So, it is a great idea to obtain a personal loan to pay off your credit card debt.

You may think that this still leaves you with another debt. That is true. But it is preferable to repay a personal loan than credit card bills. For one thing, the interest rates on personal loans are lower.

Banks may offer the least interest on personal loans, but they are harder to acquire. Plus, you may have to pay a lot in application processing fees and annual fees. That is how the banks make up for the low interest they charge on personal loans.

A licensed moneylender is a great option for personal loans. Their requirements are minimal. Processing your loan application takes minutes. Plus, there are many licensed moneylenders to choose from. Compare their interest rates and their terms and conditions. Then you can choose the moneylender you want and set up a loan repayment plan that suits you.

You should also burn your credit cards. Use cash only. You will be less likely to overspend and fall into debt.

  1. Get a Personal Loan to Settle Huge Credit Card Payments

There are instances where you have to make huge payments using your credit card. You are someone who is very particular about paying off your bills on time. Then you have to pay a lot for something that usually requires a free 30-day trial. You decide to pay for it with your credit card, and then take out a personal loan to clear the bill. You have to know that credit card companies want you to spend a lot on your credit cards. They can charge you a lot of money as interest only when you do this.

For instance, there is a way some card companies charge you interest. Maybe you made a transaction of S$3500. That is huge. They will charge the appropriate interest on that, which is huge. After you have paid off the bill and you have S$35 to pay, the company will still charge you interest on S$3500. The interest is charged on that original transaction amount until you finish paying it off.

As such, it is cheaper to take out a personal loan and repay it. All the rewards on your credit card will still come to you this way as well.

  1. Get a Personal Loan to Settle Emergency Cases

As said earlier, you should have an emergency fund for emergencies. However, it is true that there are circumstances that delay the setting up of such a fund. And then an emergency arises. Now you need a loan.

Not every financial need requires a personal loan. You should understand this first of all. If the situation is such that you cannot delay, then a loan is a good idea. Situations such as mortgage, car repairs, or something health-related may require instant monetary attention. These are good reasons for getting a personal loan.

If the emergency is a wedding, well, most would advise against getting a personal loan for that. Weddings can be postponed. No one wants to start happily ever after paying off loans. If your emergency is a vacation, you need to take a good look at your priorities.

A licensed moneylender is a good option for getting a personal loan. You can get the cash just two hours after applying in most cases. You can compare interest rates of several moneylenders and choose one. You don’t even need to have good credit to get a personal loan from a moneylender.

Pawnshops are another option, as long as you have something valuable to exchange. The option with the lowest interest rates is banks, but you know how banks are. Assess the situation you are in critically before going for a personal loan.

4 Effective Ways To Escape Spiralling Debts To Prevent Being Broke

4 Effective Ways To Escape Spiralling Debts To Prevent Being Broke

It is not uncommon to take loans in Singapore. It has become a way of life. Despite the fact that it was despised a while back, loans are something that is essential to living well in Singapore. Very few people can afford to live life on their income alone. As such, loans are not a strange thing and neither is debt.

Facts have come out, showing the trend of debt that Singaporeans have fallen into. The Monetary Authority of Singapore has been advising Singaporeans in debt to pay off their debts. The Repayment Assistance Scheme was created because the government knew how bad the debts were. It wanted to help those whose annual income is less than S$120,000 pay off their debts.

Because these debts can affect the Gross Domestic Product of the nation, the Monetary Authority of Singapore has enacted very strict rules on getting loans. This doesn’t seem to stop people, though. Singaporeans still get into debt way over their heads. The major reason why you fall into debt is that you overspend.

4 Effective Ways To Escape Spiralling Debts To Prevent Being Broke

So, how do you know that you are in spiralling debt?

  • You can’t seem to get an approval for your loan application

It is very normal for banks to reject loan applications for a myriad of reasons. But when a moneylender also rejects your loan application, then you are in trouble. But how do they know that you are in spiralling debt? Before you can get a personal loan from a lender, they assess your risk. They do some research to find out just how risky it would be to grant your loan request. It is not difficult for them to access your credit report, you know. Another reason could be that you have borrowed from them before, and they had repayment issues with you.

  • You have a highly-unbalanced debt-to-wage ratio

Calculating your debt-to-wage ratio isn’t at all hard. Get the total of all your loan/bill payments for a month. Then get the total of your income, per month. If what you earn is lower than your repayments, you have a bad debt-to-wage ratio. You should probably get some financial counselling.

  • You find it difficult to the minimum on loan repayments

If for some reason your income isn’t enough to sustain you and pay off your debts, you are in spiralling debt. If you can’t even pay the minimum on those repayments, your spiral is worse than you know.

  • Other issues make it even harder for you to repay your loans

Not only do you have bad credit, but other things have come up. You got seriously injured and have no money for medical bills. Your house is acting up and needs a ton of repairs. You suddenly got fired from your job. Your car broke down. These issues can make you fall into more debt than you already are in.

This looks very dire indeed. How can you get out of spiralling debt? Is it even possible for you not to be broke? Yes. It is.

To Stay Out Of The Debt And Broke Zone, These 4 Methods Will Be Of Great Help.

  1. Assess your debts, and pay them off from worst to least worst

There are good debts and bad debts. The good ones are loans that you take for your house. The bad ones include a personal loan you got from a moneylender to settle your gambling debt. A bad debt could also be a maxed-out credit card. As you make plans for repaying your loans, assess your debts. Group them into Good and Bad. And then start paying off the bad ones. Once you have successfully settled those ones, repay the good debts. Your credit report will show that you made late repayments, but at least you will be debt-free.

  1. Assess your bad debts, and pay off those with the most charged interest

Typically, the bad debts have the highest interest. A personal loan is one of the most expensive in Singapore. Not every moneylender charges quite the same interest, but it would still be high, about 18%. Credit card debts charge a whopping 24% interest. These are the ones you should pay off as quickly as possible. Late repayments on these debts will make it even harder for you to repay them in the future.

Here is an example. You made a large money transaction on your credit card. Maybe a transaction of S$4000. The company is charging you interest based on that amount. Then you are able to pay it off till you are left with S$4 to pay. The company will still charge you the interest on the original transaction figure. See how necessary it is to prioritize debts with high interest?

  1. Make a repayment plan

To make a repayment plan, you need to first make a good budget. Your problems probably began because you never budgeted your earnings well. Create a budget for your income, including expenditure, savings, and emergency fund. This budget will include money for debt repayments. It shouldn’t be strange to you that you will need to restrict your expenditures to the barest minimum. You need to get out of debt.

Then make a repayment plan. Write down all the loans you have taken. Note their interest rates besides them. The debts should be arranged from worst to better. This way, you have a repayment schedule, and you should stick to it.

  1. Take yourself to a financial support group

These support groups teach you a lot of important things. They teach you how to borrow responsibly. They help you with ways to settle loan sharks (if you got money from them). They don’t exactly provide you with cash, but they help you psychologically. From what you learn in the support group, you can plan your affairs better.

If you got a personal loan from a moneylender, don’t run away. Meet the moneylender and explain your situation. Most of them are willing to create or restructure your repayment plan to suit your repayment ability.

How To Successfully Settle Credit Card Debts

How To Successfully Settle Credit Card Debts

Debts are a scary thing. They cause sleepless nights and constant angst. While being in debt may not be odd for Singaporeans, it isn’t a good thing. While some fall in debt due to overspending, others have very different reasons. You may have made an important payment using your credit card. The importance of that transaction still doesn’t change the fact that you will be charged high interest rates till you pay off that credit card bill.

You cannot afford to skip repayments. You need to have a good credit report. Avoiding your moneylender or the banks won’t help you either. Here are ways that you can successfully settle your credit card debts and live a debt-free life.

Pay Off Your Debts In Full

Singaporeans seriously misuse your credit cards. It seems you think having a credit card is equivalent to having free cash to spend. Well, the credit card companies don’t mind if you max out your cards. They will just charge you high interests and wait for you to pay your bills.

You, on the other hand, complain about the unfairness of it all and pay only the monthly minimum. The best thing to do to help yourself is to settle your debt in full. Ignore the fact that you might not have to pay a monthly fee for late repayments. The banks and credit card companies make up for that by charging you high interests. And the interests do not reduce as you owe less. The interest amount remains the same, whether you still have S$5000 to pay or S$5. If you can afford to, then pay off your debt at once, in full.

Pay The Minimum Amount

If you cannot pay the full amount at once, then make sure you pay the minimum every month. By paying the minimum amount, you get to avoid the late repayment fees that apply. While the interest rates will still be there, paying the minimum is better than accruing more debt. For most credit card companies, the minimum amount you pay monthly is 3% of the total amount, or S$50 a month. To be sure, you should inquire from your bank.

Paying the minimum amount helps in cutting down the debt bit by bit. However, it is not a long-term answer to your debt problem. If possible, avoid paying only the minimum amount. This should not become a habit. It is unhealthy financially.

Another thing you should be mindful of is using your credit card while repaying your credit card debt. This is counterintuitive. It will just compound your debt issue. Put your credit cards away. Use only cash while you repay your debt.

How To Successfully Settle Credit Card Debts

Get a Personal Loan

Personal loans are loans that can be used for a variety of things. You can use a personal loan to pay for your car. You can use a personal loan to pay for your house. You can use a personal loan to pay for tuition or to make house payments. You can also use a personal loan to settle your credit card debts. Personal loans, in general, are charged a lower interest than credit cards. You can get a personal loan from a licensed moneylender, the banks, or from a pawnshop.

Licensed moneylenders offer comparative interests on their personal loans. They can also give you instant cash, approving your loan application in less than two hours. You can also work out a repayment schedule that suits your needs and your ability to pay. Personal loans are unsecured loans from moneylenders. This means you don’t need collateral to get a personal loan. It also means that the amount you can borrow from a moneylender is limited by your annual income.

Pawnshops and banks require collateral. You can get a loan from a pawnshop by exchanging valuables for cash. If your valuables are worth S$3000, that is the loan amount you will get. If you fail to repay the loan, the valuables are sold.

Banks offer the lowest interest on personal loans. However, the processing fees are many and more than make up for the low interest. Also, banks are not known for their fast loan approvals.

This gives you three options to choose from. Get a personal loan and pay off your credit card debts. It will be easier for you to pay off the personal loan.

Consolidate your Credit Card Debts

You can create a debt consolidation plan for your credit card debts. For instance, you can get a debt consolidation loan. These loans are basically cash loans that you can use to clear your outstanding credit card debts. Debt consolidation loans are a cheaper alternative to personal loans. You can get debt consolidation loans from banks, and also from licensed moneylenders.

This way, the credit card debts are taken care of. You just have to focus on paying off one loan with its interest rates. It works the same way as personal loans do. Debt consolidation is a great plan for you if your total debts are 12 times more than your monthly salary.

Obtain a Zero Rate Interest Loan

This type of loan is called a balance transfer. What you do is you get a new credit card from another bank. Then you use it to pay off the debts of your old credit card. The first 6 months come with 0% interest. With this, you have some time to regroup and plan your repayment strategy. As you pay off the old debt, please do not use your new credit card. Wait till after that debt is paid.

These 5 methods of settling credit card debts are very effective. However, you need to create a good repayment plan. After you successfully clear your credit card debts, refrain from spending so much money again. Always budget your income. Account for what you spend, what you save, and set up an emergency fund. If you must make a large financial transaction, get a personal loan. You can get one from a licensed moneylender at nothing more than 4% interest per month.