Debt is one of the things that many people wish to delete from their lives and vocabularies. Financial experts have revealed that many people in Singapore try to commit suicide when they realise that they have huge debt which they do not know how they get out of it fully. But do you that there are many goods that can make you get into debt.

If you compare between the bad and good debt you will realise that not all debts that you can take are bad. You can also realise that even bad debt cannot be bad enough especially if you keep at a reasonable level that corresponds to your income/ Some of the best reasons that can make you get into debt are:

Get a college degree

Comparison by financial experts among the college graduates in Singapore has shown that they earn more income than workers who only possess a high school diploma. These graduates do earn almost double the income that the individuals who have not attained any degree. Experts say that it can be a good idea if you visit any financial institution so that you can take out a student loan. You can use this loan to pay for the college fees in a degree in the job field where you can be paid high income.

Although financing the college education can be highly expensive, it is valued as the best investment that you can take as a parent for your children. The skills that the children get can enable them to expand their knowledge which they can use to invest and in turn be able to pay the debt without struggling. Do not worry when you take a debt to finance your education as it can be beneficial in your future life.

Buying a home

Many of the residents in Singapore consider the idea of buying houses as the best investment since their value increases with time. If you take out a mortgage loan that has the best terms and conditions, you will enable you to have an asset that is valuable once you finish in repaying your debt. You can look around for financial institutions that have the give you a loan and the best places that you can get a house. There are so many houses for sale in Singapore that you are buying when you have received a loan. These houses can be the best investment that you can make with your loan. Most people will set emergency money aside to pay for renovation fees and etc.

Ways on how to get the best mortgage

You can start a business if you have ever thought of engaging in business in future and you do have a profitable business idea, getting a loan from reliable and licensed moneylenders in Singapore can best way to start. Although a business has its own challenges and benefits it is a matter of taking a risk in your life. Once the business starts to do well it will be considered as if you have invested in yourself. If the business is profitable enough you will be able to pay your debt within the shortest period of time even before the debt period elapses. After that, you will be debt free and all the profit and the whole business will be yours.

When you start a business you will be able to control you’re your future and get the benefits than you would if you were employed. Although you will not be guaranteed of 100 % success, if you look at the residents of Singapore you will realise that many people who take out loans to expand their business have benefited them for many years.

Reasons that can make you not to go into debt

1. Going on vocation– It is not good for you to borrow a loan so that you can go on a vacation. You will not be able to get means of repaying the loan.

2. Buying designer shoes, purse, and clothing- This items do cost a lot of money and yet they do not last for long. These items will also not add any value to your life, it will only be for prestige. After that, you will suffer the burden of repaying the loan, even be forced to sell some of your assets so that you can repay the loan.

3. Buying luxurious gifts- There are some gifts that you can buy will cost your life. You will not gain anything by buying this gifts just to pleasing your friends. It is good that if you want to buy any gift for your friend just buy a simple one without taking out a loan.

4. Buying a furniture for your house- Furniture are one of the expensive items that do cost a lot of money. If you have new house avoid taking out a loan so that you can furniture. You can be buying the furniture slowing from your savings. Some of the reasons why experts say that it is not good for you to go into debt over this items is that they do not appreciate in value even if they are left for long period of time. All of the above items continue to depreciate as you are using them. You will actually be left with a huge debt and have nothing to pay the loan with. The best advice against the above items is to save so that you can finance them.

Good debt can also turn bad

Experts in Singapore have revealed that if you are not careful enough with your good debt, it can turn out to be bad. Some of the best ways on how you can avoid your good debt from getting bad are by:

You should avoid taking out a loan debt that is beyond your means. If you want to take a loan take on that can be able to cover your business idea, buy a house, cover your educational requirements. Avoid taking a loan then you need as it can be difficult for you to repay since the interest rates continue to rise up with time. Take a loan that you can pay within the shortest time possible. It is good that you budget the finances that you get so that you can keep your credit score to the correct standard. When you delay repaying your debt you will ruin your credit score.

Sometimes emergencies can happen in the least expected circumstances. Most often than not these emergencies needs cash. Getting the money from somebody is not easy, but the good news is if you are living in Singapore there are many reliable licensed moneylenders. You have to be careful though for there are several reports regarding loan sharks transactions too. Some of these loan sharks present themselves to be professional moneylenders. For a potential money borrower, it is very important to gather information first prior to applying for a loan from a moneylender.

Professionalizing the Money Lending Business

The government has taken bold steps in order to curtail the proliferation of loan sharks by introducing a fixed interest rate for all borrowing per month. The move has taken out the bad lenders out of business and only the reliable lenders have remained.

Factors to consider in choosing a moneylender

Here are some of the important things that you must consider in choosing a licensed moneylender and getting the best deal from your borrowing.

Get to know the moneylender

Since you will be dealing with a person or an institution who will be providing you money, you need to get the information about the moneylender first. Check out the person/company history. There are many online sites that list licensed moneylenders. Check out if they are listed and read the reviews. Some have testimonials from previous clients. This will ensure that you will be dealing
with a reputable lender.

Know about the fees

When you are making an inquiry, ask about the fees that you will have to pay to avoid getting surprised by the charges in the end. Read the agreement carefully and make sure that before you sign you agree to all the terms and conditions.

When you discuss what you need with the moneylender, make sure that you mention the purpose of this loan. Do not hide any information on why you are borrowing money. It will help you, moneylender, to find the best type of loan suitable for you at the
best rate.

Make a comparison

In case you still have time to spare, make sure to check about 3 to 4 options before committing to any company/person. A reliable moneylender will educate their clients on how to make the right decision. A personal loan is available at any institution since this type of loan deals with emergencies. Some of the best Money Lenders have personalized package for every client to suit their needs, it is good to check them out.

By doing a comparison, you will get the best rates. Some licensed Money Lenders also offer loans even if you have a bad credit score. If you fall into these categories, there is no fear of being rejected, as they will be able to help you if you have done your
research correctly.

Check the validity of the licenses

Licensed moneylenders are required to meet the requirements of the government in order for them to operate. This means that the borrower is assured that the lender is following the guidelines set by the government. If the money lenders continue to received complaints and this has come to the knowledge of the state, then they will lose their license. This way the borrower is guaranteed to receive good service from the lender to uphold their reputation.

Transparency of the application

As mentioned earlier, licensed moneylender received guidelines from the government on how they will extend a loan to the borrower. The lender must be able to clearly explain the conditions of the loan. The language used must be understandable and easy to understand. There should be no fine print. The lender should also be able to give the copy of the contact to the borrower.

How to Spot a Loan Shark

In spite of the warnings, loan sharks are victimizing still many people. If you are caught in a financial stress, sometimes we take the easiest and fastest route. They can be present anywhere, in the social media, in the community board, and classifieds. When all is said and done, you will be forced to pay a high-interest rate and constant bombardment of payment reminders.

Do not be a victim; here is a quick guide on how to spot a loan shark.

1. The loans have off the roof interest rates

Although interest rates are normal, a sky-high interest rate arouses suspicion. Loan sharks are known for this. They will sweet talk you into agreeing with the beginning sentences like ‘I can offer you money, but you have to agree on the rate’. For a person in need, it is easy to agree. Unfortunately, you will come to know the financial sinkhole you get yourself into once you started paying.

2. There is too much flexibility in the terms

Normally licensed moneylenders will ask for your documents to support the identity of the borrower and to know your real address. If the lender does not ask for any documents or did not even ask for one, chances are you are dealing with a loan shark.

3. Takes any form of a document as collateral

Some lenders will ask you to surrender your passport, Bank ATM card to secure the loan. Everyone knows that when a person started asking for this, he/she is a loan shark.

4. Questionable to No Contracts at all

This is one of the obvious signs that you are dealing with a loan shark. Some loan sharks have contracts though but there are fine prints and impossible provisions that will put the borrower in an unfair situation. As what we have mentioned in the early part of this article, transparency is very important.

5. The loan terms are not clear

Loan sharks are the illusionists of the financial world; they will trick you into signing a contract or agreeing to a loan without clear terms. If the contacts have no repayment terms, a set maturity date, and even the required monthly payment, do not sign. You are dealing with a loan shark.

To avoid loan sharks, make sure that you only transact with a legitimate and licensed moneylender. Although you may need to have patience and considerable time in processing the loan, you are guaranteed that you are dealing with professionals.