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.

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.

Pro And Cons Of Instant Cash Loan In Singapore

The financial industry is in itself very tough. Even with the money lending business that is present within it. Singapore’s money lending industry is continuously looking to adjust to the many changes. These changes are often resulting from the government policies enacted as well as the innovative changes in the economy. This oftentimes leads to high competition among the different moneylenders in Singapore. Each lender uses attractive personal loan offers to attract borrowers. The current economy is also contributing greatly to the rise in competition. This is because of Singaporeans’ salaries and wages have stagnated and job opportunities are on the decline.

This has led them to seek out personal loan options as a way of having the quick cash to fix their financial needs and desires. Singapore has many different personal loan types available to its citizens. The instant cash loan being the most frequent loan type offered to borrowers by the lenders. Both moneylenders and banking institutions offer the instant cash loan. This loan type is at times referred to as cash loan. The loan name may not be the issue. But of importance is that borrowers need to carefully weigh the different pros and cons off getting this loan offer.

Pros Of Cash Loans In Singapore

The following are some of the benefits an individual enjoys when taking a cash loan in Singapore. This has made it easy for potential borrowers to be able to take out personal loans from lenders. One thing to bear in mind is to always deal with a certified money lender for your loan transactions. This will ensure you enjoy competitive interests and are safe.

  • Fast Approval

The Instant cash personal loans allow borrowers to have access to fast cash pretty quickly. Since there ate fewer credit checks and no collaterals needed, this loan type is made easily available to you. Many lenders in Singapore are able to offer a quotation based on your income for each month. This is on many occasions done through an email request. Lenders often reply to loan requests within 1 to 2 working days.

  • Easy Application Process

Owing to the rapid growth in the use of the internet, many moneylenders are offering their loan services online. This, for a potential borrower, means you can go online to have your loan pre-approved without physically going to their offices await an approval. This has made it possible for a potential borrower to get several quotes from different moneylenders. This also allows borrowers to be able to first survey the market, obtain quotes. And also compare the different loan offerings thus end up making more intelligent choices in future.

  • Flexible Repayment Plan

Moneylenders offer cash loans that are a lot easier to understand. All a borrower needs to do is show proof that they have a steady source of income. In general, a borrower is able to get a loan amount of 2-4 times their monthly income. Normally, your credit score does not affect the approval process of your loan application.

  • Less Paperwork

When making a loan application from a moneylender, you are required to meet a few requirement for you to get a personal loan. Some of the requirements include proof that you have a stable income source and proof of residency. These allow the loan application process to be speeded up. Make sure you confirm with your lender the needed documents before you make a loan application.

Cons Of Cash Loans In Singapore

There are some downsides of cash loans that a borrower needs to consider carefully.

  • Purpose Of The Money

Experiencing a cash influx might lead a borrower to have no control. It is easy for A borrower to splurge the newly found money. This is instead of meeting your financial needs and also settling your debts needs. Once you have received your cash loan, you will need to lots of control, discipline, and a purpose for the loan money. It is recommended that you always put a plan in place for your money resources. This will ensure you get bills paid and you meet your financial obligations.

  • Interest Charged

Although the interests charged on loans are generally high, it is possible for a potential borrower to find a lender who is offering a suitable interest to suit your financial needs. Make sure you shop around before settling for a particular lender. This will ensure you get the best loan offerings available in the market.

Summary Of Cash Loans In Singapore

Singapore’s government has put in place new control measures. This regulations and rule have now capped the interest rates at 4% for each month. The new ruling has lead to moneylenders being careful on whom they give loan money to. For this reason, it is advisable to be upfront when you have any problem or even an action plan. This will greatly influence your chances of getting hold of loans issued to you from moneylenders.

When you find yourself in doubt, it is always advisable to check in with your loan officer. This way you will get the chance to clarify and seek further explanation on the loan of interest. A cash loan is an easy loan scheme; even then, it is advisable to be cautious when you are borrowing. And of importance is to always read the loan terms and conditions given in the loan contract.

When you have any questions, be sure to ask your loan officer. This is especially in regards to the repayment terms packages available for you. And also be sure you inquire about any additional fees and charges you will incur during the loan processing.

Ensure that you are well informed and are a smart borrower. This will let you make better loan choice decisions. And above anything else, be sure to find a certified moneylender you are comfortable with. And one who is more than ready to transact with you.

Always take time to shop around, make inquiries and read reviews here. These are some good sources of the much-needed information that will enable you to make the best financial decision.

Differences Between Payday Loans Vs Credit Card Cash Advance

In Singapore when you are researching and making a comparison between payday loans and credit card cash advances, you will get confused by their different offerings.

Many credit card companies are increasing the competition as they compete against different lenders and amongst themselves to give fast cash loans to individuals.

In Singapore, it is easy to get a loan with the various schemes for the various package loan facilities. Licensed moneylenders, banking institutions and variation of loan companies offer varying loan types to suit their different consumers. To get a clearer picture below are differences between the credit card cash advances and payday loans.

Payday Loans

When you generally look for a personal loan, you may have come across many different words used interchangeably. These words may include; personal loans, Payday loan, fast loan and cash advance. A payday loan is a type of a personal loan.

Payday Loan Definition
This is a short-term loan that enables individuals to borrow a loan amount depending on their monthly income. There is a minimum cap on each month’s income depending on the rules guiding moneylenders. This cap also applies to individual borrowers who have a higher monthly salary which allows them to borrow more cash.

Payday Loans
Also referred to as personal loans and payday advances – is a version of an unsecured loan. This means no collateral is required to take out this loan type. Payday loans are normally approved depending on your income. They also come tailored to an individual borrower’s ability to repay in a given timeframe. Every now and then payday loans are paid back in several split payments. Even then, the entire loan amount is to be repaid with the fixed interest.

Although licensed moneylenders offer this loan type, the interest charged varies accordingly. A notable advantage of taking a payday loan is the adjustable or negotiable repayment plan. This greatly helps a borrower with regards to money management. This makes this loan type a better plan for individual’s finances.

An additional advantage that licensed moneylenders present their customers is simple policies on rates charged. Interest rates charged on loan amount taken with no hidden charges.

Credit Card Cash Advances

The credit card cash advance is issued to an individual depending on their accessible credit limit instead of your monthly salary. The credit card advance is normally treated as though it were a purchase made using the credit card. The credit cash advance repayment terms and conditions are often times strict.

Cash advance on your credit card might or might not give you a deal which is better than a payday loan. This is however dependent on your credit ratings and if you are creditworthy. A number of credit companies may charge interests that are higher on cash advances than the payday loan given by moneylenders.

Cash loan advance comes with the monthly credit card bills and it needs to be reimbursed accordingly. The interest rate is compounded each day and a substantial application fee is required when you make a loan request.

This credit card cash advance has hidden charges on the principal amount which might be late payment fees, withdrawal fees, transaction fees, card fees, banks service fees and setup fees. These charges are often not known to the borrower.

In addition, a lot of the credit card companies need you to make repayment on all the existing non-cash balance onto the credit card cash advance.- these are normal purchases you will have made using your credit card. This for a borrower means that you have to pay up this amount first with a lower interest. This is the cash advance amount outstanding is untouched and it will keep increasing and the interest compounded.

If you have ever received credit card cheques in your mailbox from credit card companies, then you need to know that these cheques are always treated as cash advances. Although these cheques offer you big sums of money, the misconception that many people have is that they come with the accompanying negatives. Most people tend to think this is an easy form of credit without them realizing that this loan type comes with multiple charges.

Credit companies in Singapore put a ceiling on the maximum loan amount depending on your credit limit. Cash advances often attract heavy interest rates and finance charges starting from the first day the loan is taken till when it is fully repaid.

The cash advance has its advantages where the borrower is able to request for loan transfer into their account. The borrower is also able to easily make withdrawals at the credit company’s ATM. Some credit card companies offer loan applications through the phone either by SMS or cash-on-call.

As a rule, you can avoid the huge charges when you make payments on the credit card statements each month. Do ask the card issuer to clarify for you how the interests are worked out. Ask them to also provide you with a working of an exemplary loan amount.

Evaluation And Results: Make A Wise Choice

The best way a borrower can go-about these loans. Payday loans may at times have high-interest rates compared to cash advances. This is because moneylenders take a high risk of borrowers defaulting.

Nevertheless, when you have been a regular customer and have a great history of timely payment, licensed moneylenders will often give you a better repayment policy or better rate. You can also discuss with loan officers for a convenient repayment plan suitable for you.

Payday loans have great flexibility in regards to repayment plans. When the repayment time period is taken into consideration, you are better off taking a payday loan. Payday loans, on the other hand, have no hidden charges. This allows lower-income individuals who cannot access credit card to access a loan.

Based on the loan requirements for your loan type, make the right and suitable choice. Regardless of the loan type, you are looking for, do a thorough research, read through reviews and also check out what the competition may be offering.

Pros And Cons Of Payday Loan

Payday loans are unsecured, short-term loan type that attracts high-interest rates. This type of loan can be used to cover bills, rent, and other urgent expenses that cannot be off until the next salary. Payday loans are good sources of quick cash in case you are faced with financial emergencies. In Singapore, you can access a payday loan if you have a stable source of income and a bank account.

Unlike traditional bank loans which offer 2-3 times of your monthly salary, payday loans allow a maximum amount of half the monthly salary you get.

There are ranges of pros and cons that are associated with the payday loan. Some of which include:

The Pros Of Applying For A Payday Loan

Payday Loans may not be that different from the traditional bank loans you have access to. The main difference is payday loans are designed for a short period of lending i.e. under a month and then you repay back the loan. Payday loans are great when you repay them back before the agreed due date. They can also help get you through a passing cash problem.

  1. Simple Online And Fast Approval Processes

Money lenders have made it possible for individuals to apply and also have the loan approved all via the internet. This offers a customer a 24-hour type of customer service. This medium ensures quicker transfer of information and approval. Therefore you are able to attend to your urgent commitments within a short period of time upon application.

  1. Cash Is Made Available Fast

Payday loans offer you quick access to cash. It normally takes less than 24 hours to process and disburse the money to your account. Traditional bank loans, on the other hand, take a number of working days for you to receive the cash.

  1. No Collateral Required

Payday loans do not need you to have any form of security, what you present to the moneylender is 3 months current payslip and bank statements. Thus you do not need to put in any of your property as security.

  1. Licensed Moneylenders Offer This Loan Facility

Although you can access loans from unlicensed moneylenders, it is, however, advisable to deal with moneylenders that are certified. Licensed moneylenders follow set lending rules, unlike loan sharks who answer to no authority. Licensed moneylenders are issued with licenses by MAS.

  1. Less Paperwork

Credit checks and other paperwork are not needed for your loan to be approved. Traditional bank loans normally take long to approve your loan since they do extensive credit checks. This makes it possible for more Singaporeans to easily access loans even when they have a low credit score.

The Cons Of Taking A Payday Loan

  1. Expensive rates

Payday loans attract high-interest rates almost as much as those charged on credit cards. This can be a drawback especially when the loan taken is a small loan which is payable within a short period. These rates applied on a loan which has a short duration i.e. it could be bi-weekly or weekly compared to the annual scale. The rates are usually higher since the money lender is taking risks and a financial liability.

  1. Possibility Of Recurring Debt

When not careful, taking a payday loan can potentially ruin an individual’s financial future. You may have finished repaying a previous loan but come mid-month, you find that you need urgent cash for bills. This may prompt you to apply for a second payday loan. When this is done through several months, you will find yourself piling debt into more debt. This also leads to financial uncertainty as you will find yourself in the never-ending financial cycle.

  1. Non-Payment Charges

There are fees that you will be charged when you miss making a payment. This is often stated in the loan contract. Failure to make payments or making late payments can lead to you repaying more money than is necessary. This is so when you have taken a small loan amount which is payable in a short period.

  1. Possibility Of Ruining Your Credit

Even when money lenders do not do extensive credit checks, they keep records of non-repayment and late loan repayments. Falling behind in making payments for your outstanding payday loan can ruin your credit.

  1. Not A Good Long-Term Way Out

This loan type should not be treated as the only source of fast cash when you are in financial difficulty. There many other solutions to your financial problem. Risking your future paycheck is not one of them. Missing a payment or late repayment is expensive and can even put you into more debt instead.

In Closing

Taking out payday loans will still have an effect on the amount of loan you may borrow from banks. This is especially so when you plan to take a bigger loan an example being the home loan.

When used wisely, payday loans are lifesavers and will offer you the much needed financial backing. This is more so when your savings end up being pillaged by daily expenses and bills. When used badly, payday loans will be a source of your misery. This loan type will put into a never-ending vicious financial cycle. This for you the borrower will mean each cent you earn goes into repaying your creditors which includes payday loan lenders.

The take away is that you need to treat payday loans as an alternative to the last result when you require some fast cash. When an urgent need arises and you must take a payday loan, make certain that you do so since you actually require money. Also, ensure that you can and will reimburse it within the set time period.

On time repayment of your outstanding loan will ensure you do not ruin your credit. It will also help you avoid being charged the late repayment and the non-payment fees. This fees can make you end up paying more than you needed to should you miss a payment or even make late payments.

Is A Payday Loan Right For You?

Living in Singapore, having cash emergencies is not unusual. You forgot about budgeting for this month’s rent. Maybe you need to make small payments on your car. These issues came up suddenly, at a time when you didn’t have any money. And then you thought of a payday loan.

A payday loan, a payday advance or cash advance loan, is a short-term loan. The loan amount is usually small, and the loan is unsecured. Payday loans are popular with Singaporeans. This is because applying and the requirements are simple. Also, the loan approval time is quick, and so is disbursement.

As the name implies, a payday loan is one that you have to repay on your next payday. Your payday could be the week after you take the loan or in a month. For emergency cases, payday loans are a great option. Despite their usefulness, their interest rates are high. Their rates can even be higher than the interest on typical bank loans. This is because they are short-tenure loans. This makes payday loans dangerous for you, especially if you don’t plan and use them well.

How, then, do you know if a payday loan is a right thing for you? Here is an outline of what you should and shouldn’t do with a payday loan. Use this to guide your decision when considering applying for a payday loan.

What You Can Use Payday Loans For

1. You Can Use A Payday Loan For Emergencies

You cannot plan and account for everything. Every once in a while, life throws something at you that you just weren’t expecting. As you were rushing to get to work, your car didn’t start. You don’t have the money to call the plumber, so you don’t have running water in your house. Extra curriculum costs requests from your child’s school. A medical situation has just come up that needs urgent attention. You can’t wait for your next paycheck to pay for all of this. Getting a payday loan is just the thing to set off these emergency costs.

2. You Can Use It As A Temporary Cash Flow

Sometimes you run out of cash before you have settled your monthly expenses. Sometimes, even the best budgets are overdrawn. For instance, you receive your salary. You have planned how much you will save and how much you will spend. Then other things come up. The money you kept for groceries has to go for paying the plumber. The money for utilities is converted to pay for an important subscription. When these things happen, you run out of cash. Or the cash you have just isn’t enough to do everything.

Getting a payday loan or a cash advance can tide you over to the next paycheck. A payday loan allows you to carry on as you would with your paycheck for the month. Since payday loans are small, you can get one and repay it with your next salary. Limited funds can’t keep you from living normally again.

3. When You Need Funds Urgently

Payday loans may attract high-interest rates, but they are very convenient. Bank loans, or getting a new credit card, may be cheaper than payday loans. However, they take too long process. The application process is lengthy and rigorous. The approval process can take weeks before you can get your cash.

So what if you need the money for an emergency with a deadline? The best option is to get a payday loan. Also, moneylenders can be found online. They also stay open after banks have closed. Your loan application can be processed and approved in minutes. Cash disbursement can happen within the hour. This makes payday loans most suitable for urgent occasions.

When You Shouldn’t Use Payday Loans

Payday loans are good for any number of purposes. However, there are instances where it would be wise NOT to use payday loans, such as:

1. Using A Payday Loan To Make Payments On Existing Loans
This is a very dangerous habit, and you would do well to stay away from this. Payday loans are notorious for their high interest rates. This is because the loan is unsecured and is a short-term loan. The lender is the one at risk, so that interest has to be high. Borrowing to pay off another debt will just put you in even more debt. Falling into a debt cycle like this will harm your opportunities of keeping a clean credit report. You will also get into the habit of defaulting on repayments. It wouldn’t be wise to default on a payday loan repayment. If this seems like it could happen, meet with your lender and discuss on a repayment plan that is suitable for you.

2. Using Payday Loans As A Supplement To Your Income 
The standard of living in Singapore is high. It is true that you may need a loan at some point in your life. However, if you keep getting payday loans to help where your income can’t cover, you are making a mistake. Payday loans are not meant to be a supplement to your income. They are just a short-term solution to an urgent financial need. If you constantly borrow payday loans to pay for rent or utilities, maybe you need to reconsider how you are living and make the necessary adjustments.

3. Using Payday Loans To Make Purchases That Aren’t Important
It is important for you to consider what a payday loan is costing you before applying for it. The interest on these loans is high, so you shouldn’t borrow one to spend frivolously. Always budget your expenditures and stick to them. A Payday loan should only be used for what you need, not what you want.

You must understand that a payday loan is a short-term loan, and is only good for emergencies. Be sure that you can repay it with your next salary without going broke. If you need a larger amount of money, a payday loan may not be right for you. If you think you won’t be able to repay with your next income, check out other short-term loans instead of applying for a payday loan. It may not be right for you in that situation.

Top 10 Benefits Of Payday Loans

Payday loans are handy for getting out of sticky situations. However, many Singaporeans do not know about the benefits of getting payday loans. Singaporeans, as a general rule, do not like getting loans. Some turn to it as a last resort, because they are tired of borrowing from family and friends. A payday loan is a fast solution of cash, but a lot of people do not know how to go about acquiring such a loan.

A payday loan is a small loan. It is also a short-term loan that you can get to settle some monthly bills. They are most effective when you don’t want to miss any payments or explain about post-dated checks that have bounced. If you have any financial emergencies that require instant attention, a payday loan is just the thing for you. There are financial lending institutions in Singapore that offer payday loans like ours.  There are many benefits to getting a payday loan.

The Benefits Listed Here Are The Top 10 Advantages Of Getting A Payday Loan

These include:

  1. You Can Apply And Qualify Easily
    Unlike with other, larger loans, it is easy to obtain payday loans. Whether it is a payday loan or a cash advance, you will qualify for one easily. This is because the requirements for getting a payday loan are simple. You just need to have an adequate monthly salary. You also need to have a good loan repayment history. Since payday loans are to be repaid when you get your next paycheck, it is important that your repayment history is good. Once these two particulars are covered, you can get your loan.
  2. Your Personal Information Is Kept Confidential
    You don’t have to be afraid of your banking details getting out. All information provided to the lending institution is kept highly confidential. They are not authorized in any way to give your personal or banking details to anyone. You can apply for a payday loan knowing that your details are safe with them.
  3. The Loan Application And Approval Process Are Fast
    Personal loans from banks are the most common type of loans that Singaporeans apply for. However, the application process is long. The approval time is also quite long. It can take up to weeks for your loan to be approved. With payday loans, this is not the case. The application process is brief, and your application can be approved within minutes. Most moneylenders will even give you a guarantee of one hour to get your money once they deem you qualified for it. This makes payday loans great for emergency cash situations.
  4. Payday Loans Are Flexible
    Knowing the tenure of a loan helps you plan better for repaying it. Payday loans are loans with short tenures, i.e. short-term loans. However, they are flexible in that you repay when your next paycheck arrives, and not before.
  5. The Amount You Can Borrow Depends On Your Monthly Income
    At any given time, you can only borrow as much as your monthly income allows. While some may see this as a disadvantage, it actually works to your advantage. Repaying loans is easier for you this way. It also serves as a deterrent, stopping you from borrowing more than you need. Furthermore, you effectively avoid falling into a debt cycle.
  6. There Is Legislation In Place That Protects You As A Borrower
    This is an important fact that many Singaporeans do not know. The government has put in place rules that protect you from unscrupulous lenders. Some loan sharks go about, giving loans and charging exorbitant interest rates on the loans. There are laws that in place to keep you from getting high-interest rates. It is necessary that you know these laws before going for a payday loan.
  7. You Can Use Your Loan For Anything
    Typically, a payday loan doesn’t have any limitations on what you can use it for. For example, bridging loans are a specific type of loan used for obtaining property or selling/buying a house. Payday loans can be used for anything. That makes them a good option when you need instant cash to solve a problem.
  8. Payday Loans Are Convenient
    Getting a payday loan is very convenient. This is because most lending institutions (that are not banks) stay open after normal banking hours and open on weekends.  These factors make them easy for you to apply for loans and get them. They also provide you with a quick solution in case of an emergency.
  9. They Are Very Useful For Emergency Cases
    Circumstances that require money can crop up at any time. They are emergencies when they occur when you do not have any money at hand. Whether it is the rent, credit card bills, or to pay off a debt to a friend, payday loans are good for that.
  10. There Are Caps On Fees And Interest Rates
    The government has placed limits on how much payday loan lenders can charge borrowers. There is a maximum interest rate that they can charge you. There are also limits to the fees that can charge. Fees may even be limited to a one-time administrative fee and a fee for late repayment.

Payday loans are the perfect solution if you need to settle some bills without defaulting. A payday loan is also safe to go for if you want to keep your credit score clean. If you are considering getting a payday loan, you should think of the benefits. Payday loans are easy to obtain, and they are flexible when it comes to repaying.

Rules have been set in place to protect your interests. These prevent payday lenders from charging you high rates or fees. Most importantly, they are the best thing to get to settle immediate financial needs. With payday lending institutions everywhere, you can conveniently access one with a loan. Remember these pros when you want to get a payday loan.

 

How Finance Companies Help SMEs Obtain Funds

During the tough times, small businesses often struggle to remain profitable amidst rising costs. A sustainable business needs to be profitable since without profits it cannot develop or transform. The possible methods that can be used to ensure increased profits are either cutting costs or increasing revenue.

Increased competition and world economic downturn have posed a major challenge for SMEs who are struggling to remain profitable. Many small and medium-sized enterprises are not given the attention they need for their sustained growth, yet they are a very important part of a country’s economy. Small and medium-sized enterprises (SME) are the biggest employment base of a country and are always employing new employees increasing the job creation and training aspect of an economy.

In an effort to increase revenue, SMEs face the challenge of financing. Most of the SMEs in Singapore lack the capital to help increase their production capacity, as well as improve branding marketing for their products both locally and overseas. Access to efficient and reliable financing channels is very important if the SMEs are to succeed. Singaporean SMEs face the challenge of unfulfilled customer payments which were as result of the slowing economy. This is made worse as some have been operating without any form of insurance to alleviate such risks.

Finance companies were always under strict business regulations that have made it difficult to offer financial services to small and medium-sized enterprises. This has negatively impacted the growth and expansion of these enterprises, especially during the slow economy. These enterprises need to make profits which are to help sustain them but with no funding, they are unable to expand and grow sustainably.

Monetary Authority Of Singapore (MAS)’s Announcement

Monetary Authority of Singapore (MAS) recently made an announcement that it will ease finance companies in Singapore business restrictions. This was aimed at helping small and medium enterprises (SMEs) have access to financing.

This announcement was made following the central bank announcement, on its taking measures to offer stronger financing channels for upcoming Asian growth companies. The central banks financing was also aimed at investing in supporting technology infrastructure in support of the Future Economy’s recommendations.

The set regulatory changes will help SMEs access financing without collateral, therefore, the business clients will be ready to contract more easily. This also allows SMEs to be able to borrow larger amounts of loans without offering any collateral.

Impact On SMEs Trying To Obtain Financial Help

Owing to the Monetary Authorities of Singapore (MAS) announcement, many SMEs will be able to restructure their business and increase their investment capabilities to help them become more efficient and effective. This will also enable SMEs to borrow money to help meet their working capital requirements.

The financing channels will enable SMEs to review how they operate their businesses so they can be more productive and competitive.

Small and medium-sized enterprises (SME) will also be able to clear all pending business transactions and pay their business clients and help strengthen their business ties.

SMEs are the largest employment base in Singapore, their expansion and growth will continue creating jobs for the population, therefore, making major positive economic impacts on a country’s growth index.

SMEs will now be able to access larger amounts of loan funds, which will help increase their investing power, hence increasing the employment rate, increase production and make goods and services available in the Singaporean market and the world over.

Reasons Why Business Financial Help Is Needed

The MAS announcement has come at a time that SMEs needed the financial channels to help support their business sustainability. Since SMEs are able to access loans without offering any collateral they are able to generate more profits.

Business expansion/outlets expansion/move to a new office

The availability of financial support for SMEs will help support their business expansion plans. Such a funding move will make it possible for SMEs to establish themselves in the local and international market hence opening up of business outlets which will help grow the Singaporean economy.

When small and medium enterprises (SME) access financing, they are able to embark on financial organization capabilities which will ensure better management of their business decisions and investment plans.

Tide over business delayed transactions

The loans extended to SMEs will help provide working capital. Small businesses will be able to complete all pending business transaction, therefore, reviving business for their clients as well as their business. A good business atmosphere will ensure the different business venture are working together, supporting each other in the growth and development of their businesses. Production will also be increased hence more revenue is realized.

Required Bulk Purchases To Facilitate Business Needs

Bulk purchases by the small and medium enterprises will ensure their products are readily available in the market. Increased production will help positively impact the economy during the crisis period. In addition, with the extra funding, many businesses are able to source investment and collaboration overseas. Most of the Singaporean economy is supported by the SMEs; therefore the availability in the market will help address the demand in a market.

– Important Impact On Singapore’s GDP

SMEs are very important to the health and stability of any country’s stability. The small and medium sized enterprises are the greatest source of employment base, therefore, providing the majority of Singapore’s goods and services. Supporting and nurturing SMEs ensures there is high employment rates, sustainable growth for the small and medium enterprise and continuous expansion of the business venture.

Conclusion

Singapore’s small and medium sized enterprises (SMEs) have been affected greatly by the economic downturn. These enterprises have also been impacted due to the limited access they have to access loans and financing channels.

Many finance companies in Singapore were previously not extending loans to small and medium sized enterprises due to the risk involved. The recent announcement made by the Monetary Authorities of Singapore has offered the support and necessary channels needed by SMEs to grow and expand their businesses. The ease in the business restriction made on finance companies will enable them to extend loans without collateral to SMEs.

Do You Know The 10 Types Of Loans Available In The Market?

In Singapore, there are various types of loans for a borrower to access the banking and other financial institutions. There are loans for renovation for your new home, personal loan when you need fast cash for your personal needs, education loan to allow you to pursue higher education or payday loan to tide you over until your next payday. This makes the choice of the right loan type for your needs rather difficult if you do not know their different uses.

Below is information about the different types of loans found in the Singaporean authorized lenders, the benefits these loans have for a borrower and how each loan is tailored to suit your needs.

Personal Loan

In Singapore, a personal loan is the most popular loan offered by the approved moneylenders. A Singaporean personal loan has a lower rate compared to home loans. Individuals normally apply for these loans to help pay for a wide range of their financial commitments, including debt consolidation, electronics, car loans among others.

Benefits Of Personal Loans

  • You can borrow loan amounts up to 4 times of your monthly income
  • Personal loans have fixed interest rates
  • This loan has an early repayment alternative.
  • The monthly repayment amount is the same every month

Payday Loan

A Singaporean payday loan lets you borrow a small sum of money at a high percentage rate. This loan needs to be repaid in a span of thirty days or until your next take-home earnings.

Benefits Of Payday Loans

  • This loan is flexible and convenient to a borrower
  • Payday loan has fixed interest rates
  • The loan application is approved fast
  • It is easy for a borrower to qualify for a payday loan.

Foreigner Loan

A Singaporean foreigner loan is for foreigners who hold a valid work permit and employment pass. Once you provide the required security it is used as collateral against the borrowed loan amount.

Benefits Of Foreigner Loans

  • This loan type has a low-interest rate
  • A borrower receives the required loan amount fast
  • When applying for this loan type, the number of documentation needed in order for your loan to be approved is very minimal
  • A borrower is not subjected to detailed credit records checks.

Business Loan

Business loans in Singapore are financial resources extended to different kinds of businesses by a financial institution, individual or a bank. This loan type often needs to be reimbursed within a specified date and includes an agreed upon interest amount. The requirements of the borrower, the interest rate, loan amount and the repayment date vary from one borrower to the next.

Benefits Of Business Loans

  • Business loans are easily accessible and convenient for a borrower
  • This loan type is a short term loan used to solve a businesses’ cash flow problem
  • Business loans are often approved faster compared to loans offered by banks.
  • This loan type offers varying repayment options.

Instant Cash Loan

Singapore’s instant cash loan allows an individual to make use of a loan amount which is often subject to their income. This loan type has a very high-interest rate and it is often extended to individuals who are facing financial emergencies and so they need quick cash fast.

Benefits Of Instant Cash Loans

  • A borrowers credit score is not needed to qualify for a loan
  • With proof of income, you can qualify for this loan type
  • The loan amount a borrower can take is up to 2-4 times of their monthly income.

Cash Advance Loan

In Singapore, cash advance loans are similar to payday loans in that you are able to borrow a given amount of money from a certified lender before your next paycheck. Although this loan type has a very high-interest rate, most people qualify for this loan.

Benefits Of Cash Advance Loans

  • You can access this loan type without putting in collateral
  • The approval rate for this loan is very high
  • A simple and easy application and collection loan process are used.
  • Fast and quick cash is made available to a borrower.
  • The loan amount you can access is dependent on your monthly earnings.

Education Loan

Student or education loan is intended for helping students pay for their university tuition, books, and living expenses. The repayment plan starts soon after a student graduates and the interest rates are often very low.

Benefits Of Education Loans

  • Education loans have a very low interest-rate
  • This loan type is easily approved
  • Nearly all students qualify for the education loan

Renovation Loan

Singaporean renovation loans are intended for borrowers who want to fund their home or apartment improvements.

Benefits Of Renovation Loans

  • The loan has a large loan limit
  • A borrower can choose between a variable and a fixed interest rate.
  • This loan type allows a choice of the preferred repayment method; whether to make monthly or weekly repayments.

Vacation Loan

Vacation loans are exclusively used to pay for a vacation.

Benefits Of Vacation Loans

  • Money is made available to you right away
  • There are no hidden charges
  • The repayment period starts soon after you are back from your vacation

Short Term Loan

In Singapore, the short term loan is also referred to as caveat loans. This loan type is aimed at helping businesses fix their cash flow issues and be able to straighten out their finances.

Benefits Of Short Term Loans

  • Application fees are not required
  • The loan is flexible and easy to access
  • The loan approval period is within hours
  • Credit checks are required.

Conclusion

Singaporean legal money lenders offer various loan types for their borrowers. The instant loan approval Singapore makes access to quick cash very convenient for any borrower. Once you identify your needs and the loan type that will suit your financial needs, approaching a legal moneylender in Singapore for assistance is very easy.

Most of the loans offered by the lenders require minimal documentations to help you have an instant loan approval Singapore. The various loan types’ help an individual meet the different needs they may have for renovation loan for home improvements and student loans for funding their education.

Pros And Cons Of Debt Consolidation Loan In Singapore

In a pile of unresolved debts? You may wish to consider debt consolidation loan.

Debt consolidation is a form of loan taken to pay off many other consumer debts. This type of loan can be secured with collateral or unsecured. Multiple debts are pooled together into one large loan debt. Debt consolidation loan Singapore has a more favourable way for you to pay off your debt due to the lower interest rates, therefore, lower monthly contributions. These form of loans do not get rid of your debt; they just transfer all debt to a different lender as a lump debt. Many people in Singapore are currently under a lot of financial obligations of meeting day to day expenses as well as other urgent expenses like car loans, home loans, business loans and renovation loans.

Debt consolidation can be a good payment plan for individuals who may have challenges managing their different loan debt types they owe. The challenge faced by many Singaporeans is that the different loan debts they are servicing carry varying payment interest rates. This makes the tracking and control of expenses rather hard for them.

In Singapore, there are several credit unions that offer individuals a chance to access the consolidation loan facility. This loan type helps take away a lot of stress and financial strain and you are able to pay off all your debtors and focus on repaying a single loan amount. As you look for debt settlement options, below are pros and cons of consolidated loans that will help you in deciding whether this form of loan is best for you.

Pros Of Debt Consolidation

You only need to make a single payment. In consolidating all your debt, your monthly contribution is reduced to a single payment which minimizes the chance of late or missed payments. Additionally, by dealing with one creditor means writing only one check thus saving you a lot of time and energy.

In understanding the interest rates on other loans and credit card debt, an individual is able to consolidate their debt into low percentage rates, making it easy to pay down debt and truly make noticeable progress.

When consolidation loans are well managed an individual can end up saving some money in their budget instead of spending the entire monthly earnings on bills.

Since you only make one payment it will mean your monthly payout is lower. The interest rate is lower, making the loan repayment period less hence faster debt payment.

When a borrower is hardly making payments every month, debt consolidation loan will assist in your catching up on your payments and even getting ahead. This will help take off the financial stress off your finances.

Cons Of Debt Consolidation

There is the potential of getting into more debt. Having a single payment will mean more funds are available to you. For some individuals especially gamblers, however, it means having more to spend thus getting themselves further into more debt.

Even with the lower interest rates, there is a possibility of taking longer to repay your debt. This, in the long run, will mean you pay greater interest. In order to avoid this, you can stay focused and pay off your debt as fast as you can.

By failing to stick to your payoff plan, you might end up with more debt than before. In some occasions, some creditors agree to remove penalties and any added interests once you consolidate your debt. However, when you fail to make payments as agreed upon, the penalties and interests will be brought back.

Although a borrower has received some relief off of their finances, does not mean they have got hold of their spending habits. To avoid getting back in debt, the borrower can learn new money management skills which will go along way in cultivating better spending habits.

Where Can You Get Debt Consolidation Loan In Singapore

Singapore was one of the countries affected by the bad economy, which saw an increase of borrowers. Following the recession, many Singaporeans have been submerged in debt which they want to be paid off within the shortest time and at lower interest rates.

The introduction of the debt consolidation facility has been viewed by many as a God-sent intervention to help them pay off their debt. This debt repayment plan helps in tracking the monthly payments, which have been reduced to a single repayment amount. In addition, lower interest rates make the repayment period less than it was with the multiple creditors.

In Singapore, several financial institutions offer the debt consolidation loan facility. These include:

Banks

Singapore’s debt consolidation plan is designed to bring together loans that are over 12 times more than your monthly income.

Only Permanent residents and Singaporeans, with outstanding debt balances of 12 times more than their monthly earnings can apply for this loan facility.

If you decide to switch debt consolidation plan to other banks, you can only do so three months after the approval of your latest debt consolidation plan.

Once in a Debt Consolidation Plan, all your existing unsecured debts and credit cards are suspended. You will, however, be issued with a revolving credit offer corresponding to one month’s salary.

Moneylender

Like the banking institutions, moneylender’s debt consolidation plan is open only to Singaporeans and permanent residents.

You are required to be between ages 21 and 65

You are required to earning a minimum income of above S$20,000 per year

You are required to produce your identity card during application.

Conclusion

Debt consolidation loan in Singapore is a type of loan that combines all your existing loans in a single loan. The single repayment means you are able to manage your finances easily and even have some extra for your saving every month.

Debt consolidation loan helps you make lower monthly contributions with low-interest rates. This helps you only focus on one monthly contribution and thus have less financial strain. Debt consolidation loan Singapore helps negotiate with your creditors for penalties and interests to be removed, making your loan amount lower. In Singapore, banks and moneylenders offer this loan facility.

How Payday Loan Works And Where Can You Get It

A Singaporean payday loan is aimed to be a short-term borrowing service available to salaried individuals. The loan repayment period is often arranged over days before your next take home earnings but can also be spread over several months. Payday loans are good sources of quick cash in case you are faced with financial emergencies. The payday loan has fixed interest rate which is often higher than other most of the other borrowing loan alternatives. This loan type is a convenient way for an individual to have some extra cash for their day to day use before their next paycheck. When a borrower defaults in repayment of the payday loan, the loan amount taken can quickly grow into large and hard to repay the loan.

The payday loan application process is fairly simple and once it is approved, usually after you have submitted all the required loan application documentation, the money is disbursed to your account within 24 hours. Payday loans when not properly handled can hurt your credit score. When lenders see payday loans, it already shows them that your finances are already strained. Although standard credit reports do not show short term loans, it is advisable to ensure you repay your payday loan as soon as possible. This will also prove to lenders that you are a responsible borrower. Defaulting on payments can jeopardize future attempts at taking mortgages or loans. Payday loans are often time unsecured loans

How Does Payday Loan work?

Singaporean payday loans are aimed at offering quick cash to individuals who have financial commitments to attend to. The amount, once approved is transferred to your account and at the end of the month, it should be repaid plus the interest it has attracted. However, longer repayment periods can be negotiated with your legalized moneylender. How payday loan works are by ensuring the borrower is offered a quick financial solution to the funding crisis they may be experiencing. The lender requires you to provide them with your personal information and documentation which serve as proof of the information you have offered.

Once you have the required documents, you are expected to fill a loan application form which is often to find on the licensed moneylender platform. The loan officer from the moneylending institution then contacts you, usually within a few minutes after you have submitted your application. The loan application and approval process are very easy and fast therefore ensuring you receive the loan amount within hours after you have applied. The terms and conditions of the loan are always contained in the loan contract. This contract indicates the interest rates charged on the amount you have taken, the repayment period and the expected contributions.

It is advisable for a borrower to ask for clarification when the loan officer is working out the loan with them to ensure there are no hidden charges. As a borrower, you need to consider the implication of any defaulting and penalties you will incur.

Payday loans are best paid quickly as they attract high-interest rates, therefore, the longer you take reimbursing the loan the more you end up paying. It is also important to remember that any loan contract you sign, you are legally bound to honour the terms and conditions stipulated in the contract of the loan.

What You Need To Know 

It is useful and important that you fulfill a few requirements before applying for a payday loan in Singapore. These requirements are necessary to enable the moneylender to process your loan application with ease. This also ensures fast approval of your payday loan application. The requirements are:

  • You need to be older than 21 years.
  • You need to be a Singapore national, an expatriate in Singapore with a valid working permit or a permanent resident.
  • You should need to have a steady source of income to facilitate your advance repayment achievable.
  • You need to submit a valid identity card.
  • You ought to have evidence of current billing address. Utility bill for proof of address is accepted
  • You have to attach your past three successive month’s payslip.
  • If newly employed, attach your employment letter to your form of application.
  • You are required to present your income tax statement
  • This loan is not applicable to any undischarged bankruptcy or having pending bankruptcy
  • Your annual earnings need to be more than $18,000.

Who Provides Payday Loan?

Licensed moneylenders in Singapore often provide the payday loan. These moneylenders are licensed by the Registrar of Moneylenders. Moneylending institutions follow set rules and regulations that govern how they carry out the financing services they extend to their clients. The moneylending institutions are required to have valid licenses and an updated list can be accessed from the Registrar of Moneylender’s website. These institutions have a set limit on the amount of money an individual can take as well as the interest rates to charge.

Before taking any loan from a moneylender, ensure to check they are approved and registered moneylenders. Moneylenders are expected to offer all the necessary information to borrowers before they sign any loan contracts. This way the borrowers are able to understand what they are signing and the interest rates they have been offered. In order to avoid any hidden costs, borrowers are to be given the details and the working of the loan to ensure clarity to the borrower.

Conclusion

Payday loans offer quick access to money for individuals who need money fast. Singaporean payday loans are approved within a short period upon submission of the required documentation and a filled application form. How payday loan works are in providing quick cash to individuals. The loan amount is often repaid when they receive their next paycheck. The availability of funds makes it easy for individuals to attend to financial emergencies like car breakdown and medical emergencies with ease and in a stress-free manner. The fast approval rate of payday loans ensures quick cash is availed to your account in hours.