Singaporeans Thinking of Taking Out a Payday Loan Should Read This First

Over time, Singapore has grown from a third world country to a first world country in just a short decades of time. Because of its fast advancement, Singapore has now been labelled as one of the most expensive cities to live in. No doubt that Singapore has offers so much comfort to both locals and foreigners because of the growth in modern technology and the multi national cultures of life that this small country is known for. The infrastructure skyline is amazing and government policies law & order have always been on point. The blooming of the fashion markets in Singapore have made us spoilt with too many choices to choose from. There are no shortages of places to get your stuff be it for home, office or personal usage.

As such, these have increased the cost of our standard of living and things have made life much more challenging for Singaporeans to manage their finance. Despite most Singaporeans leading a lavish lifestyle, in fact, in times of crisis, most of them do not have emergency funding. Leading an extravagant life can lead to serious issues when you start draining out your bank accounts and accumulating massive bad debts in your credit card.

If your ability to keep tracking of your spending and not kicking away your spending habits. you may eventually end up taking more and more loans each month. While you still have a small sum of temporary fund that are barely enough, the constant debts accumulation will eventually cause a toll on your bank account as it starts depleting and eventually run dry. Thus, waves of more serious problems will arise. particularly if you are in the middle age range, in hopes of retiring in style and comfort.

What You Need to Know about a Payday Loan

When you find yourself caught up in short of cash situation, a fast and hassle way to obtain extra funding is by taking up a payday loan from licensed moneylenders Singapore. This is one of the personal loan type which allow you to get hold of extra cash and tide you over till the next pay check comes in. Hence, if you cannot afford to the long wait, getting a payday loan Singapore is the right solution for your concern.

Well, before that, you have to be aware of what you are signing yourself up for when you apply for such personal loan from moneylenders in Singapore. Most importantly, you have to understand that the interest rate will not be as low as what you expect it to be. Generally, Payday loans are known for high interest rates as this should not be your priority, unless you have exhausted your savings. As such, this is why you find yourself stuck in the situation, contemplating if you should take on a payday loan, or perhaps getting another personal loan and adding onto that stack of existing debts that are piling up.

Before you take up a loan, you should ask yourself these questions, it will help you in your decision making process.

1. What are the available options?

It will be worth exploring other alternatives when it boils down to the type of loan you can consider for your personal needs. Do take note that payday loan is definitely not the only option you have to solve your financial problem. It is applicable to those who needs the money urgently and unable to wait for long as the approval process from banks may take weeks. Getting a payday loan from licensed money lenders make things easier and the approval process is quick and almost instant. But then again, if it is not urgent, you should think of other alternatives.

Bearing this in mind, if you are looking at any specific loan, the rates may be slighter lower. If you have anything in mind such as getting a loan for housing or even educational loan, perhaps you should consider other loans instead that are specially dedicated for that purposes. Hence, home loan and study loan tend to have a lower rates as compared to payday loan, or subjected to the purpose of your loan. Then again, if the urgency for the need of money is high, getting the payday loan might only be the best option left for you. For those who have bad credit scores, this is applicable to you as well as the approval rate for payday loan in Singapore is much higher than others.

2. Have you tried other alternatives to borrow money?

Other than applying payday loan from licensed money lender, there are other alternatives such as borrowing money from your friends and relatives. Perhaps, you have a credit card that for emergency expenses usage. The interest will only be charged if you fail to pay up your bills in time. If not there should not be any problem paying off credit card bill without any upfront interest. The whole idea is to search for other alternatives before you dive into the payday loan option. Besides borrowing money, you can try search for other ways to make extra money like selling your items or taking up side jobs to clear off you debts. You might want to downgrade your standard of living for the meantime to get through this period. Know your priorities!

Payday loan might not seem like the best and wise choice, but it could be your only life buoy. Otherwise, you can try asking your employer for advance salary. It might not be a good idea to go on this route, but if you never, you’ll never know if it works.

Conclusion

In summary, think twice before you act. Before you want to lead a lavish lifestyle, understand your financial status. Are you able to keep up? Before you want to take up a payday loan, ask yourself if you really need it? What is the main purpose? If other alternative can solve your problem, then you should not consider taking up such loan as the interest rate is like a snowball.

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