Worried about money? You are not alone. Regardless of whether you’re concerned about paying rent, a loved one’s unexpected medical bill, or are currently bogged down by debt, anyone and everyone can experience financial stress at some point in their lives.
Truth be told, money is a common stress source for adults who have plenty of things to pay for and take responsibility for. The good news is, you can take steps to improve your financial situation —albeit not overnight— for the long and short term.
One short-term solution you might want to consider is a loan. Read on to find out how an urgent cash loan may be able to help you temporarily, as well as other important things you need to consider when it comes to loans and improving your financial situation for the longer term.
Remember, all hope’s not lost.
How can a loan help?
A loan is a sum of borrowed money that you can use to pay for urgent things you need to. This sum of money may be able to foot your bills partially or in full, potentially greatly reducing the amount of stress you experience right off the bat.
But of course, you’ll have to repay your loan, along with interest and administrative fees, if these apply. To avoid racking up extra interest and late charges, make sure you repay your monthly instalments throughout your loan tenure punctually in full before your due date.
Essentially, a loan helps you confront your existing pressing liabilities (e.g. high-interest debts) while letting you buy some time. You get to breathe and space out your loan repayments by making monthly instalments on your loan instead of having to pay off everything in one shot. Keep in mind that your monthly repayment amount should be a figure you can afford comfortably.
Important things to note if you want to take out a loan
1. Compare and find the best loan for your needs
Legal loan providers such as banks and licensed money lenders are aplenty in Singapore. It only makes sense to compare your options and find the most suitable loan offer that aligns with your needs and affordability.
Too much work? Consider using platforms like Personal Loan Finder to compare loans from banks and/or get complimentary loan quotes from top licensed money lenders in Singapore.
2. Ensure you have a viable loan repayment action plan in place
Be clear about how much you need to borrow, how much you can repay every month taking into consideration all your other liabilities and fixed costs, for how long you can sustain making loan repayments (i.e. a loan tenure you’re comfortable with), and how you are going to fund your monthly loan repayments.
It is extremely important that you are clear of these things before you even proceed with taking out a loan.
3. Be very disciplined
Make sure you pay your monthly loan instalments in full every month before their due date to avoid racking up late interest fees and late charges. These can easily add up if you start skipping payments or making late payments.
4. Stop accumulating extra debts
Cut down on splurging on unnecessary things. Always remind yourself that wants are not needs. Start budgeting to take better control of your expenses.
If you have a credit card, avoid charging your purchases to it. If you like to dine out, consider cooking your own meals at home to save money that you can put towards repaying your loan.
5. Try boosting your income
Nobody said it’s easy to get a pay raise. If you haven’t already started making full use of your free time, consider taking up freelance gigs to earn an extra sum of money that can go towards paying down your debt.
Be it one freelance gig, two freelance gigs, or even ten, put all the extra money that you’ve earned towards paying off your debt.
Where can you get loans from in Singapore?
Major banks, financial institutions, and licensed money lenders in Singapore are legal loan providers that offer a myriad of loans, including urgent cash loans, to borrowers like yourself.
Keep in mind their loan packages, interest rates, and fees vary. In order to find the best deal for yourself, definitely put in some effort to compare your loan options before settling on one.
Apart from the above-mentioned loan providers, you might want to consider turning to family and friends for help. Do not fall prey to illegal money lenders or unlicensed money lenders like Ah Longs!
Is a cash loan suitable for everyone?
A loan —especially one from a bank or licensed money lender— isn’t designed for everyone and anyone. There are some people who should avoid getting loans at all costs:
- They’re not confident that they can be committed to paying off their loan instalments
- They’re not serious about repaying all that they owe
- They have the mentality that it’s okay to always be in debt
Should you get an urgent cash loan to tide over tough times?
First things first, stay calm and think through things rationally. Make time to relax so you don’t let your financial stress overwhelm you while you take stock of your finances. Do you have a close friend or family member who might be able to help? Do you need to go for credit counselling?
If you really need to take a loan, would you be able to get one from the bank? Banks typically offer better interest rates, but they don’t care to lend to borrowers with poor credit histories. Licensed money lenders are way more lenient in this regard.
If you need an urgent cash loan from a licensed money lender, 96bm Credit can help; simply speak to us to find out more. We’ll be more than happy to provide you with all the advice and assistance you require.