Tips on How to Use Payday Loans

Payday loans are a great way of managing emergency expenses. And when you borrow from a licensed moneylender, the risks are minimal. However, the success of a payday loan depends on how well you manage and use the amount for your benefit. Here are some tips on using paydays judiciously.

Never use it for settling monthly bills

Remember, payday cash advances are ideally meant for catering to emergency expenses which arise out of nowhere. This could well be a medical emergency, an immediate travel, an impending purchase and similar. However, never consider opting for a loan for covering up your monthly bills. Your bills should be well within your income!

Have the payback plan in place

As your licensed moneylender will advise you, always have a payback plan in place even before you have received loan amount. A payday loan runs from one payday to another and attracts heavy interest on default. There is no alternative to paying back on time. So make sure you have planned the resources well before opting for a cash advance. As the old saying goes, “borrow only as much as you can payback.”

Prepare a budget beforehand

One of the biggest mistakes to make is to seek a certain amount as loan without budgeting the expenses. Make a list of expenses you wish to cater to with your loan amount. Without a proper budgeting, you will only see the amount disappear into nowhere! Never add the loan amount to your pool of income, always keep it separate and use it for catering to additional expenses.

Most importantly, never opt for cash advances if you are incapable of managing your borrowings well. Defaulting on payments can lead you straight into a debt trap! Make sure you have a responsible approach and choose to payback your loans on time.

from Financial Directory Singapore


4 Common Financial Emergencies in Life and How to Handle Them

You might be working hard for achieving your financial goals. However, emergencies don’t seek appointments before they throw your planned schedules out of gear. Most importantly, financial emergencies can cause serious distress, unless they are planned remarkably well. You always need to have quick cash sources, such as, a trusted licensed moneylender at hand. Here are four of the most common financial emergencies and how you should deal with them.

1. Job loss

A job loss can often happen all of a sudden. It could be due to market conditions, the overall performance of your company, any change in company policies and so on. Most of these conditions have nothing to do with you. However, it is you who would be forced to face the consequences. When you lose your job all of a sudden, the first thing to do is to find an alternate source of income. Make sure you have a contingency fund at hand. Liquid investment instruments like SIPs, mutual funds and fixed deposits also help.

2. Health emergency

This could be due to a sudden illness or an accident that requires hospitalization. The best solution is to have a comprehensive health insurance policy. Make sure you have studied the terms and conditions before buying. In addition, consider investing in a contingency health fund. If you do not have the necessary amount, you may also consider applying for a personal loan from a licensed money lender.

3. Death of the bread winner

Sudden demise of the bread winner can spell disaster for a family especially if there are multiple dependants including kids and senior citizens. Depending upon the family size, the earning member should opt for enough term insurance for replacing his entire income.

4. Natural calamities

Natural calamities are unforeseen but can wreak havoc on your life. The best way to prepare for the same is to get an insurance cover for your tangible property, be it home, valuables like jewelry, vehicles and so on. Having health and life insurance is also equally important.

Emergencies are unpredictable. However, advance preparations can certainly help tide through them easily.

from Financial Directory Singapore

3 More Money Tips for Expats in Singapore

Settling down in a foreign country may be unnerving on many counts. You will have a new culture to adjust to, new climate, new language, and the list goes on and on. However, the most important aspect of settling in a foreign country as an expatriate will be the money management part.

You will need to put your finances in order and engage tools for ready help. You will also need to be aware of the local norms with regard to investments and taxes so as to be able to forecast spending. If any sudden financial requirement arises, you can apply for a foreigner loan to a registered money lender in Singapore. Here are some more tips.

1. Choose your bank wisely

Open an account with a local bank that offers plenty of ATM options. If you wish to have an expatriate account so that deposits can be made from your home country, many of these local banks will offer that facility. You can even choose an international bank, especially if you have an account with the same bank, back home. In such cases, you may even enjoy a fee less fund transfer facility with them. Research your options well before you choose.

2. Make practical choices when it comes to place of stay

When seeking a roof above your head, getting swayed by high end homes in the outskirts of the city is easy. However, spending uselessly on cab fares everyday is hardly advisable. Considering staying close to The Orchard Road or the Central Business District where most of the workplaces are, so that you can walk to work and save on commuting charges.

3. Local food is a great alternative to expensive restaurant meals

Local foods at roadside stalls in Singapore offer a great option to save money. If you are concerned about hygiene levels, check the grading where A is the best and D the worse.

Make sure you have enough money in the bank, for that added sense of security. And approach a registered money lender for additional funding, if you need to.

from Financial Directory Singapore

Top Reasons to Take up a Personal Loan

Personal loans can be truly handy tools when managed well. You should know when to consider such a loan and where to borrow from. In Singapore, licensed money lenders are by far the best source to offer a quick cash advance. When should you consider one such loan? Here are some typical situations where these advances can truly be of help.

Dealing with an emergency medical expense

An unforeseen medical expense can wreak havoc on your family budget. Keeping them unpaid for long is not an option at all. In fact, a personal loan can actually help you tide through the immediate crisis, without hampering your credit score. Unpaid bills are sent to the collections department which then has an adverse impact on your credit ratings. It is better to manage them with a quick loan, instead.

Consolidation of credit card debt

Unmanaged credit card debts can ruin your mental peace. If you have debts on multiple cards, managing them is nothing short of Herculean. Besides, the rate of interest charged by credit cards is too high. One of the best things to do is to foreclose the consolidated credit card outstanding amount with the help of a personal loan. That way, you will have only one loan to deal with and the rate of interest will be manageable too.

Launching a side business

A personal loan taken up from a licensed money lender can help you start a business. Raising funds for your startup could be time consuming, if at all possible. Here, a personal loan can help you kick off the proceedings fast. If you are planning to start a side business while you are still working, a personal loan could be the best option for you, because you can pay it back from your salary.

Personal loans also offer a quick and easy financial solution to home remodeling, wedding ceremony, and vacations.

from Financial Directory Singapore

Top Reasons You Might Need a Payday Loan

A payday loan is probably the easiest way to get over an unforeseen financial emergency. Unlike major loans, they do not involve staking your home or vehicle as a mortgage. They do not even involve monumental interest rates like in the case of personal loans.

The best thing of all is that they are incredibly easy to get from a licensed moneylender. One just needs to write a post-dated check for the amount borrowed. Check out some reasons why you might need a payday loan.

For emergency car repairs

Car breakdowns can be rather abrupt. If your car suddenly breaks down, it could not only leave you staring at a few hundred dollars of repair, but pile up car rental charges. If it is a minor damage or glitch, it needs to be repaired right away. A payday loan can be had easily and can help you repair your car in time and avoid lost wages and exorbitant car rental expenses.

Urgent medical expenses

Compared to 2015, the SCDF received 7.4% more emergency medical services calls in 2016. With 80% of primary healthcare provided by private facilities in Singapore, healthcare is costly in Singapore. Payday loans can also be used to pay for an emergency surgery or for emergency treatment post an accident.

House repairs

You could wake up one day to find that your plumbing requires emergency repair. With sewage water filling up your house quickly, there isn’t much time before you get a plumbing company. You may also need to winterize your home. Simply get a payday loan and make the repairs in time.

Pending bills/installments

Credit card debt is a worrying situation in Singapore today. If you’ve maxed out your cards, getting a payday loan from a licensed moneylender can help. If you are self-employed, a low income month could mean missing out an installment or your monthly telephone bill. Do not break your emergency fund and simply apply for a payday loan.

Unforeseen travel expenses

It often happens that a relative or a close friend is unwell and you are required to be by their side. Making travel arrangements at the last moment can be tough, especially when you have run out of funds. Payday loans are approved within a few hours, and do not require a good credit rating.

Paying overdraft charges

Writing checks of a higher value than you have money in your savings account can result in overdraft fees. Paying this value back at the earliest is highly important. Banks usually charge a certain fees after an initial period, and they compound on a daily basis. Apply for a payday loan and get the fees cleared and avoiding further complications.

Funeral expenses

Bereavement is an extremely testing phase. However, with no financial planning, you will be worse off if there’s an unexpected death in the family. Let a payday loan take care of that, since moneylenders ask no questions about the use of the money. They also offer flexible terms of repayment.

from Financial Directory Singapore

via Financial Directory Singapore

5 Tips to Learn before Getting a Personal Loan

Personal loans are very different from other forms of credit, like housing or vehicle loans. They do not require pledging collateral, and for that reason, have higher interest rates as well. However, the interest rate on a personal loan is not higher than that on a credit card.

As a result, a lot of Singaporeans are resorting to credit card debt consolidation by taking out personal loans from banks and licensed moneylenders. Unlike home and car loans, how you use the money is entirely up to you. Here are 5 tips to know before getting a personal loan.

1. Avoid taking a personal loan just before a major loan

If you are planning to go for a major loan in the near future, avoid taking a personal loan a few months before. The reason is a key factor called Debt Servicing Ratio (DSR). This is an indication of how much of your income can be diverted towards a car or home loan, and any other previous personal loans. Piling on personal loans can reduce your DSR, and render you ineligible for the home loan amount you have in mind.

2. Research and compare to get low interest rates

Interest rates of personal loans fluctuate on a daily basis, so you must always be on the lookout for a good deal. A bank that offered a low interest rate a few months ago needn’t necessarily offer the same rate. Look for banks that low on borrowing clients, because they are likely to give you better rates, flexible repayment terms, and even other freebies. If you don’t know how to do it, or are simply short on time, borrow from a licensed moneylender.

3. Choose the right lender for your requirement

Choosing the right financing source is half the job done. Your options include credit unions, banks, and licensed moneylenders. Terms of repayment and interest rates vary across these institutions. Banks charge marginally higher than credit unions, but the advantage of borrowing from online lenders is that they provide easy approval. The Singaporean government has recently put a 4% cap on the interest rates charged by moneylenders, making repayment easier.

4. Do not over-borrow

Qualifying for a higher amount that you require can be gratifying, but it is generally advised against. The reason is that you will end up paying extra interest on money you don’t need, which will lead to further complications. Personal loans also carry late payment penalties, and your focus should be to borrow only as much principal as you can pay interest on. Personal loans should also not be used as business loans or for high-risk investments.

5. Be prepared with the documentation

In order to get your money quick, arrange your documentation in advance. Both banks and lenders ask for a few documents for the loan approval process. Banks also require a healthy credit rating to be sure that you can pay off the loan easily. Commonly asked for documents include pay slips, a copy of your passport or NRIC, income tax assessment reports, and so on. However, if you need the money urgently, contact a licensed moneylender. They don’t require a robust credit score and have a very short approval process.

from Financial Directory Singapore

via Financial Directory Singapore

Top Reasons to Consolidate Your Debts with a Personal Loan

The consumer society of today is driven by easy, unsecured, short-term debt, most of which is credit card debt. The Singapore Credit Bureau reveals that 20% of Singaporean credit card users pay only minimum sums on their cards. Lack of proper money management can make matters go out of hand quickly. In such a scenario, taking a personal loan from your moneylender and use that amount to pay off your card debt would be a great idea. Here are some reasons on why you should consolidate your debts with a personal loan.

To improve your credit score

This is the first real benefit of consolidating your debts. Turning revolving debt to installment debt boosts your credit rating, which is important for future credit. If you manage to pay all of your debt using the consolidation loan, the credit score will instantly shoot up. The formula that determines credit score, considers your credit limit in relation to your card balance. However, if your credit score is rather poor, get a personal loan from a licensed moneylender.

Personal loans have reasonable interest rates

You might not mind paying a little extra in interest each month, but over a long period of time it compounds. Compared to the double-digit rates of interest you’re paying, personal loans can have considerably cheaper interest rates. Moreover, by choosing to pay for a personal loan, you will have the convenience of fixed interest rates. If you’re carrying balances on credit cards with variable rates, tracking finance charges becomes problematic.

Personal loans from moneylenders are easier

Being unsecured credit, personal loans can get hard to qualify for, and traditional financial institutions have stringent loan approval requirements. Debt consolidation is not as difficult today, with moneylenders offering personal loans at low interest rates. The process is quick and having a good credit score is not necessary. The verification process is simple and you can get your cash quick. Even foreigners with valid employment permits can get easy personal loans from a moneylender. However, beware of unlicensed lenders or loan sharks.

It prevents further debt accumulation

Dept consolidation does not offer credit facility, and this is important for someone trying to become debt free. These loans are a lump sum which one is obliged to repay in total. Unlike credit cards and overdrafts, where you might go on accumulating more and more debt, debt consolidation offers systematic debt elimination. However, if you need to borrow more while still paying off your personal loan, you can get small payday loans from a licensed moneylender.

It makes you eligible for future borrowing

If you’re still young, chances are that you will need to borrow again in the future. While having a good credit rating is necessary to be eligible for a debt consolidation loan, it also helps with future borrowing. Your credit history should reflect favorably on the state of your finances, if you are to qualify for a vehicle or home loan in the future. Missing payments, making late payments, or having judgments filed against you for bankruptcy can deny you a loan.

from Financial Directory Singapore

via Financial Directory Singapore