Why I Should Repay My Student Loan As Quickly As Possible

Tertiary education makes it possible to have access to a broad variety of careers choices. Unfortunately, although there are government grants available to students, there is a pricey toll charge for obtaining this opportunity which comes in as tuition fees. The benefits of tuition fees are often felt mostly by the students who do not have scholarships or even family members who can help them foot the bill either using their savings or CPF.

For these students, working with moneylenders in Singapore to access a student loan seems to be the best solution for them. These students’ loans, for the most part, begin attracting interest immediately upon their graduation.

The widespread tendency of avoiding debt has led many Singaporean students to instinctively want to pay off their student loans once they are able to do so. The reason for this is the fact that the more time you take to repay your debt, the more the interest it is going to accumulate. This, in turn, will mean you will be paying more in total. Therefore, when you want to make savings on interest, you will need to consider doing all you possibly can to rid yourself off of this debt.

However, it is important for you to look at the many possible ways of handling your student loan debt to help be financially wise. Listed below are some factors for you to think about when formulating a holistic and sustainable plan to help you repay your moneylender student loan.

How Debt is Affecting You

It is important for you to realize that there is a lot more to repaying your debt than money and also incurring interests. Taking on debt means that you also carry the emotional price that comes with it, which can impact people in varying ways.

Some people are comfortable taking their time to repay their debt, recognizing that the accumulated interest for the charges is an essential part of taking out loans. In contrast, there are individuals who are irritated about having their loans accumulate interest over time. This should make them strive towards repaying their debt soon as they are able to.

So, although a little debt is no big deal, and when it helps your sense of safety to an extent by knowing that you have fewer commitments, then prioritizing the debt repayment is important for both the intangible and tangible benefits it brings.

Number Crunching

Numbers are fundamental to your loan and the plan you come up with needs to be based on the math.

Below are a few questions you need to ask yourself to assist you in planning the personal loan settlement strategy:

  1. What is the total loan sum of your loan?
  2. What‘s the interest charged on the loan?
  3. What amount are you able to pay for each month?
  4. How much time will it take you to offset the loan?
  5. What amount of interest will you have paid over the whole loan settlement period?

It is essential for you to work out these particulars about your student personal loan. This is because they will have an impact on your priorities. Evidently, you need to work towards paying off your debts the minute you are able to do so as this will help you to avoid paying too much in interest.

Yet, all in all, it is rather simple to just apportion each dollar you can to pay off your personal loan. This is without taking into account what portion of your salary you will, in fact, afford to allocate to loan repayment, yet having sufficient to help you meet your other essential expenses.

Cost Of Huge Monthly Loan Installments

Having to apportion a big part of your monthly salary for loan repayment will mean that you are able to pay off your student loans a lot faster. However doing this will also give you a smaller amount of cash for taking care of other important things in life, such as insurance as well as cash savings for urgent situations.

It is important for you to have in place an emergency fund. This can typically be an amount worth of 4- 6 months’ of your expenses while you are repaying your personal loans. This way, you will be financially prepared, in case unexpected situation befalls you. For instance, should you experience a job loss, or when you go through a mishap that entails you having to pay large hospital bills, an emergency fund is able to sustain you during the difficult period.

When you do not have an emergency fund set up, you might wind up adding to your parents’ financial burdens. This is because you won’t be having enough cash flow to help you survive on during the tough period. What may well begin with good intentions could well get you into much worse circumstances than before.

Realistic Next Actions

You may begin by organizing your expenses to help you calculate the amount you will need to survive. Ensure that you set up realistic expense targets, therefore don’t put a significantly low budget for your own expenses. Even though you may do this with good financial intentions, you could end up breaking your budget for each month. This would impact your morale, together with your will to repay your debt over time.

It may be better, to begin with, a reasonable loan repayment amount for each month and then eventually increase the amount whenever you can. Possibly you will learn how to better optimize your spending, or also be rid of some recurring expenses by changing your lifestyle. Pay raises and periodic bonuses are a great way to reduce your debt, without having to “suffer” more.

There is no fast or hard of how you need to best divide your salary – each person has different priorities and needs. Even so, make a point to have an emergency fund, put in place a realistic budget for your expenses. And from there consistently yet patiently make the student debt repayments.

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.

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.

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

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.

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.