3 Tips for Paying Off Payday Loans

Thanks to the licensed money lenders in Singapore, we now have a surefire way to deal with our short-term financial emergencies, should they hit us days before our monthly Pay Day. To keep the option open, however, you must repay your loans in a timely manner. Essentially, you should have a proper plan for paying off your payday loan. Here are some useful tips.

1. Look for ways to earn an extra income

Look for any opportunity to earn an extra income by working extra hours every day and by utilizing your weekends. Another good idea would be selling any unused items at online auction sites, such as eBay and Craigslist. For instance, if you have some used mobile phones and electronic gadgets in proper working condition, you can sell them to earn some quick cash and use that amount to pay off your loan.

2. Automate your payments

When you’ve money in your bank account, you may be tempted to spend it on unnecessary items. Automating payments for your utility bills and loan EMIs is a great way to deal with this syndrome. The money goes to the lenders straight out of your bank account; and you’ll be left with the remaining amount. This helps you set a feasible budget for your day-to-day expenses. You’ll not be able to spend money on unnecessary things. Also, this will help pay your monthly installments on time, and thus avoid penalty charges. Automatic transfer ensures that the loan repayment is never delayed.

3. Pay off extra when possible

If in some months you can pay more than your premeditated EMI, go for it. While paying off the bare minimum saves you from penalty charges, it is always a good idea to pay more whenever you have extra cash in hand. Paying off a portion of your debt will not only keep your burden in control, your entire payday loan will be repaid sooner than later. Hence, instead of spending your extra bucks in some unimportant things, make the payment whenever it is possible.

from Financial Directory Singapore https://www.financialdirectorysg.com/2018/01/31/3-tips-for-paying-off-payday-loans/

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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 https://www.financialdirectorysg.com/2018/01/18/tips-on-how-to-use-payday-loans/