It may come as a surprise. But Singaporeans do not get personal loans simply because they want cash. For individuals who are terrified of a loan, need not worry. Many young Singaporeans feel the same way too. Most Singaporeans are brought up in a society. This is where most learned that it is bad to use loans.
Yet, personal loans can be great tools for enhancing your lives. Once they are utilized in a responsible way. Below are several ways that most people have used loans to good effect.
They Can be Used to Consolidate Debt
Given that you owe money on several credit cards. This one method you can use to repay them all. You will be able to do so at once using a personal loan. Thus it will let you swap the high-interest card loans with one. The single new moneylender personal loan has lower interest. This you can do using a balance transfer.
A balance transfer is an option you can use to transfer debt. This usually is from one card to another credit card. However, should you opt not to take an additional credit card. You could consider taking out a personal loan. The moneylender personal loan will come in handy.
They Can Help Cater For Late Payments
For individuals whose employer only pays them late. You need to bring it to the Manpower Ministry attention. But, the grievance won’t change the reality. You will in due course be broke and in need of money.
It is particularly true for individuals who are self-employed. This can be the case when you have your own business. This can be the case for freelancers as well. You will sometimes come across late paying customers. Using personal loan can helps you cover your crucial bills. These will include phone bills, power, mortgage, etc. awaiting your employer to sort out their bookkeeping issues.
To Avoid Charges On Credit Card Cash Advances And High-Interest Rates
It often happens that when some Singaporeans need money urgently. They at times activate their cash advance feature to get fast cash using their credit cards. However, taking the time to compare the interest shows the different offers.
Actually, you will be getting much lower interest rate. That is when you use a personal loan instead of a credit card advance. In addition, credit cards will charge you cash advance fees of 6%. That is the withdrawn credit amount or S$15 –either that is higher. But, a personal loan does not involve up-front fees at all.
Maintain Safe Levels Of Money During Huge Purchases
Suppose that you’ve saved up S$10,000 for a month-long vacation abroad. That is wonderful! However, you should think it over regarding paying it all at once. Even if you are very capable of doing so with ease. When you were to use up all the $10,000 and have no income for the month. Then it will mean that you’re off should you face an emergency. This will also lead to your vacation getting ruined. An example is losing all your money during a robbery.
There is an alternative that will be helpful. You could consider taking out a personal loan worth S$10,000. This is even though you already have the funds. And you can gradually pay it down in sums of several hundred dollars. This you will be able to clear the loan over 1-2 years. In so doing it will ensure that you have some money. You can use it to take care of the emergencies. And this will make it possible for you to enjoy your vacation.
They Are Great For Buying Wedding Rings
It may not be a good idea to purchase your wedding ring using a credit card. Unless you have sufficient money to repay it back. That is prior to the next billing cycle. Having its rates of interest at 24 percent a year. A credit card can pull you into debt at an important moment in your life.
You could instead, obtain a personal instalment loan. That comes with low interest – often between 6 to 8 percent a year. This will be useful for you in paying for the ring. Also in the promotional periods, you could get good deals. This could even be 0 percent interest loans. These loan deals will attract no interest. And this is usually for about 3-6 months.
Can Be Used To Take Over When Reno Loans Finish
Renovation loans come with a limit of S$50,000. Now and then this amount is not enough. Or it can happen that something goes rather wrong. And your interior designer could go over the budget.
But by using a personal loan it may be a good idea. This will make your home renovation go smoothly into completion. This will be better than leaving your kitchen partially assembled. However do be cautious. You probably are overspending. Considering if S$50,000 isn’t sufficient to pay for all your furnishings.
To Help Avoid Making Insurance Claims
At times, insurance policies offer bonuses. And only when you do not file for claims. And this you will get when you do so for certain period. Also, there is the moratorium insurance. This only starts when a policyholder doesn’t file claims for five years.
Under such circumstances, a few people decide to take out loans. This they do with the intention of making repayments without filing a claim. It helps them keep any bonuses and discounts form their insurance policies. And this they achieve without being left flat broke.
Helping Out Friends And Family
At times, your friends and family need your help. It could be due to being retrenched, medical reasons, or even losing their house, etc.
You could consider borrowing a personal loan as an option. To help settle medical emergencies or other pressing needs. Pick a loan that will have convenient repayments. Such amounts as S$100 or even S$200 in monthly repayments. You can then pass the loan money to your needy friend or relative. This is an option is much safer compared to giving them a lump sum. It could mean you are getting money from your own savings. Particularly when there is a likelihood they cannot repay you back.