, ,

Ultimate Reasons Why Debts Are Bad For you

When a person or organization burrow some amount of money with an interest rate and committed to paid back in future is called a debt. It can be unsecured or secured loan. A person can take the loan for any purpose but after completion of that period, he needs to pay it back with the decided interest amount. Sometimes people think little debt will not cost more but it gradually increases along with the increasing amount of interest and becomes a big debt. For an instance, when you make a small purchase by using a credit card then after a short period of time this amount becomes bigger because of the addition of interest rate. Even the licensed money lenders are also giving money as a low interest rate loan within a particular interest amount. The borrower needs to pay the total amount along with the interest amount. In this article, we are going to discuss the top 9 reasons for which the debt is bad for you.

1. Debt encourages you to spend more than your budget

It is a major fact about the debt that it convinces you to spend more amounts on certain even when you cannot afford them at all. When you have debt option you get more excited and attracted towards new things and try to purchase them without thinking about the interest you will pay in future for this. When the time comes for payment you will realise the value of that money you spent on these unnecessary things. In this term debt is definitely bad for you.

2. Debt will definitely hurt your credit score

If you start comparing original loan balance and credit limit with your available debt amount then you will get to know that your credit score is very low. Even if you are not purchasing your loan amount or credit card, still your credit score will definitely affect the cost of the product and service you have taken before. You should Stay Away From These Mistakes that Ruin Credit Score in Singapore

3. Debt is using your future earning

Whenever you use a credit card or take a loan you are actually borrowing that money from your future earnings. Just imagine you
are spending that amount which you are going to earn in future. If you are borrowing the money from a professional money lender then it won’t affect your banking status but it will definitely affect your financial status.

4. Any kind of debt will charge you

You are signing a loan amount or you are using a credit card for your shopping, any kind of debt it will be you will pay a big amount for that. There is nothing free available for you. Normally, you pay a particular pricing amount while creating the debt. In the future, that amount will deduct in the form of interest. The late you are planning to pay, the interest rate will be higher and the load of the debt will be higher accordingly. In such case, the only option is zero percent credit card or interest-free loan but those are also available within a limited amount and can be easily lost in case you default any of your pay.

5. Debt keeps you away from achieving your economical goals

When you are paying your debt amount monthly it will reduce the other expenses that you are planning to spend on other important things. So the more debt you take the more month installment you need to pay in future. So you will not able to fulfill the wish and desire of yours and your family as well.

Even though debts can block or hinder the progress of your economical goals, however, you should not give up. You can simply follow these easy 20 steps to save up and work on your economical goals.

6. Highest interest rate can double the product cost

When you purchased something by using your credit card and you are not able to pay the amount for a longer period then imagine the total payment you paid with interest are really the same values of your purchasing product. It will definitely the bigger value then your product cost.

7. Debt can cause health problems

When you have any kind of debt, it will definitely bring stress to your life. Because every day you only thinking of how to clear the payments very soon. The stress that you get from debt will cause severe health problems which include migraines, ulcers, depression and even some time heart attacks as well. So to take care of health and make yourself relaxed you need to avoid such debt which is really bad for you. That is why it is necessary to keep money aside as emergency funding as you won’t know when you will need it.

8. Debt can affect your marriage

Debt can bring unnecessary pressure which affects your other household expenses which automatically creates lack of finance for your family. It brings unnecessary arguments within your family. In some marriages, the small fights turn into the bigger one which causes to a breakdown of marriages.

9. Debt can keep you away from owning your dreamland or house

While planning for a home loan the bank verifies auto loan, credit card loan and student loan details. If your status is clear and you don’t have such loans then only you will be eligible for the home loan. In case of any kind of debt the bank organization will not allow you to any kind of loan. In such case, if you are planning to own a home through bank load then your dream will never fulfil. So before that, you need to clear all your debt.

Conclusion

Any kind of debt either taken from the bank or any money lender or a professional organization, it is not good for anyone. So
try to lessen your burden on debt and avoid borrowing money for any kind of purpose. Sometime due to some urgent or critical situation, we may need money that time if you cannot manage them borrow from any source but try to pay it back before the committed time frame. The fast you pay your loan the fast you will get relaxed and will able to concentrate on your other requirements. So for that, you need to plan every of your expenditure properly so that you can enjoy everything within your budget and you will not require any kind of debt in future.

,

Getting into Debt: You Should & You Should Not

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.

Survival Skill If You Encounter Retrenchment Apocalypse In Singapore

Retrenchment is an everyday occurrence, especially in today`s current economic climate. It’s not something that only happens to people you know – NO – it can happen to you too. Have you ever sat down and thought what would happen to you or your family should you lose your JOB or income? Do you have a plan “B” in action? And how will you overcome something like that? For years now, people have started to realize there is no such thing as “job security” anymore. Company downsizing, acquisitions, and retrenchment seem to be commonplace. People continue to wonder if there is an end in sight. On the upside of this, it’s good to know what to do in the event it should happen to you. Here are the top tips:

Have a financial nest egg

There are so many people that don’t think about having money set aside in case they are part of a company layoff. This is one of the most important tips for surviving a layoff. You will need money to purchase the basics such as food, gas for your vehicle and paying bills. The ancient rule is to have at least three to six months worth of funds available in the event of something like this.

Better yet, try saving at least a year’s worth of funds there is also financial institution such as money lender in Singapore that can also be of great assistance a time like this.You will need to reorganize your finances. Make a list of the things that you need and the things that you can do without. Let your family know that there will be sacrifices everyone will have to make. Ensure them that everything will be okay.

Stay Positive

As you know this is easier said than done. However, your family needs to know everything is going to be okay. If you worry, they are going to worry which creates a lot of negative energy. This is the time when you will need to become focused. Now that the first reaction of shock is over and reality has set it, it is time to think clearly about what to do next. Remember that your time is yours now so take a week or two to look at your situation. Look at where you were before, where you were heading and where you would like to see your self. Be bold and think outside of the box you will be surprised at what you come up with.

Severance pay

Back in the day when people were being laid off, it was almost certain that they would get a severance package if they had worked for the company for a significant amount of time. The amount of pay would depend on how long they worked at the company. If your employer doesn’t mention it, ask them about it. Being able to get severance pay from your employer would ease the financial strain of surviving a layoff.

Look for employment

Unless you have a nice nest egg stashed, you must pound the pavement to look for another job. Attend job fairs and the unemployment office to get leads. It’s not an easy task, but you have to persevere and keep going. It’s important to be optimistic and hopeful even though it seems like it’s bleak. Surviving a layoff emotionally can boost your spirits and eventually, you will find employment elsewhere. When you get laid off from your job, your health insurance goes with it.

Go to the unemployment office

This is a step that you need to do as soon as possible and to get it out of the way. This will provide that extra income you may during tough times. Make sure your company has provided you with all the necessary paperwork, such as layoff notice/separation notice. Even if you don’t get severance pay, you will at least need to file for unemployment benefits.

This can help to tide you over while you look for another job. You will have some finances coming in. The sooner you file for unemployment benefits, the sooner you will start getting them. The amount of money that you would get is based on your previous salary. This too would help to ease some of the financial strain of surviving a layoff.

Consider a Career Change or Start a Business

Did you ever think that this layoff could be a blessing in disguise? You may have considered it before. However, you never pursued it because you had a job and didn’t have the time. There are several businesses you can start online for very little money. Do some research and see what you come up with.

Out The Box

For years you worked and lived in a box molded by your career and income. Now that you are retrenched you can break free of that mold and kick down those walls.It sounds and feels strange, but the reality is that you are now free, free to make your own choices free to live your life without any boundaries. This is the time to be creative so put your thinking cap on and think beyond those walls and boundaries.The best would be to take a pen and paper and start writing down your thoughts, break it up into the past and future, each with positive and negatives. WOW crazy! The past has more negatives, and the future has more positives.

Conclusion

In conclusion to all the above one can safely say that you are retrenched, but that does not mean total meltdown. There are effective ways to overcome retrenchment and job loss, and you do have choices, but it all depends on how you will use and leverage your choices. Each person’s needs are different, and only you will know what your needs are and what the solution will be, but the approach to the solution is always the same. Surviving a layoff is not easy for some people that are out of work. However, if they have families, they have to do whatever it takes to bring money in the home.

,

Up to 20 Easy Peasy Ways to Save Money in Singapore

Singapore is one of the most expensive cities in the world. Aside from that, its beauty is beyond five hundred word essay. It’s also a vacation destination for most people of the elite population. However, budgeting when living can be a pain in the neck but do not fret: these are the 20 ways to save money in Singapore.

1. Have an automated bank savings account

If you’re fond of withdrawing cash from your ATM for no reason, then the best option is let the bank deduct certain amount to your saving accounts. Anytime your salary is deposited to the bank, your savings is updated.

2. Eat cheaply but healthy

You don’t need to spend beyond $5 in just a meal. You have to choose a place where it offers the best service. The cheapest but delicious food in Singapore are at Hawker Centre. For instance, you can be offered a $1.4 breakfast set. You get to save huge sum amount of money at the end of the month yet you have eaten like a king. You don’t need to strain your pocket too much to take a meal instead of saving it.

3. Be punctual in the morning to Catch Up the MRT free Ride

As the saying goes, early bird catches the worm, this is absolutely true. If you practice waking up early, you will be privilege to be ridden for free by the MRT riders headed to the city. As long as their cars catches you in their designated stations at around 7:45 am in the morning. You’ll save more than you can if you wake up early in the morning. They offer discounts (50%) also if you miss their timings.

4. Buy only when you have to

You often find yourself buying something that is not in your budget plan, you ought to stick to your plan and buy only what is necessary to you. Don’t buy something because your neighbor bought it. You’ll save dollars of money by making your budget clear and simple.

5. Plan for your Groceries

Buying groceries every day is hectic and time consuming. You can imagine how you usually go buy groceries daily. At times you may end up spending more than you had plan, thus purchasing them in stock can save you lots of dollars.

6. Avoid saving your credit Info Online

It’s obvious that when you expose your credit card details on shopping sites, you may end up making impulse purchases. You should avoid the auto fill mechanism and sort to go for the manual entry.

7. Have a smart plan on your expenses

Do you wake up in the morning without a plan? You need to plan any of your penny you wish to spend. Saving should be your main priority rather than spending. Make your savings and expense plan be simple, Measurable, Attainable, Realistic and Time bound.

8. Give yourself a saving Target

Of course, if you plan to make a handsome savings, you need to give yourself an attainable target. It will act as a motivation to your target.

9. Save even when paying out debts (don’t pile debts)

Don’t let debts discourages you to saving. Make a plan on how you will clear your debts. Ensure there is a systematic flow between your savings and payment of existing debts. Not at all should let debt prevent you from making your savings.

10. Take advantage of the free park and avoid environments that may encourage you to buy unnecessary items

You can easily take advantage of Singapore’s best recreational Centre and parks without paying even a single penny. Changi Airport for instance, is not only meant for travelers but also for non-travelers who wish to hang and have a nice time. It offers some of the exclusive services like free Wi-Fi and a 24-hour food court.

11. Implement 20-50-30 principle

I am sure you have heard about 20-50-30 principles, but if you intend to save money even more in Singapore then you better put into action.20% as the minimum of your income should go to your savings, 50% be used on your groceries and utilities, and a 30% maximum used for miscellaneous usages. For instance, a fancy wear.

12. Make your car as an advertising decal

Do you own a car and you are troubled or way it can generate income? Okay, then I will let you know. I don’t mean making your car an Uber/Grab driver. You rather turn your car as an advertisement decal. Companies like Movo, can take charge of your car and you can be paid up to $300 per month by just making advert deco on your car.

13. Use clothes rental services instead of buying new

At one point in your-time, you may need to dress to certain occasion. It’s much expensive to go get a designer wear for just one occasion. You can rent the cloths for the occasion for just less than $130 for a month. You will end up making huge savings out of the creative idea.

14. Prioritize your needs

What is it that prevents you from saving? If there is need that you think you have to acquire to motivate you to save then you need to acquire. Prioritize your requirements. The least priority items should come last after sufficient savings has been made. Sometime if you are in need of personal loan, you might end up turning to banks and even licensed money lender.

15. Sell unused clothes on Refash

Did you know you can make money by selling those clothes that you no longer wear? Refash buy all clothes at a worthy price. You will have made the biggest choice by making money out of unused cloths.

16. Go for functionality rather aesthetic

Make savings by going for functionality of item rather than its look and aesthetic value. If you are acquiring a second-hand item and it provide services that it should, then don’t let your muscles strain because you need to make savings first.

17. Take advantage of the free classes there at sport hub

Do you spent lots of money going for sports in Singapore? Be economical and save by going to Singapore Sports Hub for free. They offer the best services and you will be fit without straining your pocket at all.

18. Adopt option instead of buying a pet

Purchasing a pet is expensive in Singapore. Adopt a pet and you will have save life and money. No need of spending money for something that you could have acquired for free.

19. Buy second-hand stuffs

Change your mode of purchasing stuffs. If you can be offered a second-hand item at a lower price, then you need to grab without hesitation. With application like Carousell, you will be able to save much by purchasing an item you desire at an affordable price.

20. Choose the best but cheap ride service

Don’t pay for a private car ride rather than going for the carpooling option. Carpooling application like Uber, Grab and neck comes will high discount for their customers.