Singapore provides borrowers the easiest way to borrow money. Plus, all bank and lender marketing campaigns make it sound easy to take out a loan and use it for any purpose.
These advertising campaigns have made it nearly impossible for many Singaporeans to think deeply about their current financing and make a proper budget-based decision. However, advertising lures aren’t the only ways Singaporeans spiral into deep debt.
Here are five more situations that can easily get everyone in fiscal trouble.
Medical emergencies easily drain any Singaporean’s emergency funds and savings. Singapore provides the best healthcare in the world, but it does come at a cost. Without insurance, financial emergencies are inevitable.
As we’ve implied, having insurance policies that offset expenses or pay in full your medical bills helps you avoid spiraling into deep debt because of medical emergencies. While you’ll be paying higher premiums if you’re older, having enough to offset and use only your emergency funds makes a huge difference.
Dire situations force employers to delay employee salaries. These seldom happen with established brands, but startups and small businesses might face this problem. Unfortunately, employees can only wait for their salaries to come in within the next few days, reasonable.
On the other hand, delaying your utility and loan payments can balloon their repayment costs sky-high due to interest and penalties. It’s not the employee’s fault they’re unable to pay due to delayed salaries, but a licensed moneylender payday loan is an excellent problem-solver during these situations.
Poor Loan Management
Adequate knowledge of financial management plays a great role in paying back loans. However, borrowers enticed by commercials highlighting low-interest fees and high loan amounts can fail at loan management. Poor financial planning before borrowing can result in deep debt if you leave it unmanaged.
Thankfully, banks and other lenders will educate you about financial management before having you sign your loan contract. By pointing out your responsibilities as borrowers, they equip you with knowledge in managing your new loan.
Losing your job for any reason is a sure way to get into deep debt. Unfortunately, having a new job to pay for your existing debt is the best method to resolve this matter.
On the other hand, to protect you from any unemployment risks while paying your loan, having payment or mortgage protection insurance can help you offset unemployment expenses for at least one year.
Failure To Pay On Time
Sometimes, big problems have easy solutions. Singaporean borrowers might fail to pay for their financing because they forgot about it.
The best ways to set this right are simple as the problem. Setting up digital calendar payment reminders can help you keep track of your recurring debt and upcoming payments. On the other hand, you can set your digital bank app to auto-debit your monthly loan and utility payments too.
Avoid Repayments Higher Than Your Income
Always borrow amounts with interest rates and processing fees that you can manage. If you have yet to find excellent loan amounts with steady rates and terms, you can always count on Bugis Credit, a Licensed Moneylender in Singapore near Marine Parade, for the best deals.
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