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.
https://credithubcap.com.sg/wp-content/uploads/2018/03/Up-to-20-Easy-Peasy-Ways-to-Save-Money-in-Singapore.jpg7001200Carina.Whttps://credithubcap.com.sg/wp-content/uploads/2016/08/credithub-logo-wh-400.pngCarina.W2018-03-02 17:21:282018-03-20 18:31:15Up to 20 Easy Peasy Ways to Save Money in Singapore
You have been in such a situation before. An event just took place that obliged you to burn several dollars, but you are bankrupt and there isn’t adequate money in the bank account. To even worsen the matter, you don’t expect your salary any time soon. As the festive season approaches which accompanies several spending requirements for gifts & presents, one might feel pressurized than normal to get instant cash.
What are you required to do in order to get the cash you need? It might be tempting to opt for a payday loan. This is however a warning to you that this is a seriously insecure proposition and is the last thing you would want to do. Maybe you’ve heard several individuals saying such things before on how risky a payday loan might be especially in Singapore. We will present to you a concrete case in order to demonstrate how expensive this decision can be.
Payday loan what is it?
A payday loan is simply an expensive short-term loan which offers you cash which you require till you get your next salary as the name puts it. Typically, your salary is used to clear this loan so this is a means of “pulling forward” your salary by few days or weeks in exchange for a high interest rate & fees. This is a very simple loan which can be got easily since not every licensed money lender will take a look at your credit score. They will instead ask you to provide a proof of income in order to make sure that are going to receive your paycheck soon. This similarly implies that the payday loan will be smaller as compared to your salary; therefore you shouldn’t rely on it completely in providing a significant amount of cash whenever you require.
However, the disadvantage of a payday loan is quite noteworthy since the interest rates that are charged by the money lenders are very high: while Singapore credit cards charge a 25% annual interest rate (around 2% every month), payday loans may charge an interest rate of up to 24% in just two weeks. When you compare this monthly, the payday loan’s 48% maybe about 25 times more expensive than the credit card debt which you can carry. No matter the level of desperation, taking a loan of S$760 after sacrificing your S$1,000 salary is definitely a bad deal.
Payday loan pros
Absence of credit checks: payday lenders mostly will not check one’s credit history; therefore one can borrow cash even if they possess some bad history with the credit cards & debts.
Payday loan cons
Very high rates of interest: payday loans may cost twenty four times more than the credit card debt each month. Though one you can obtain cash before their paycheck, they will be losing 24% of their paycheck.
Potential crisis: in case you fail to clear your payday loan as fast as possible, it accumulates into a huge amount which one might never be in a position to pay back since the interest rates are very high. This can ruin your life.
Are there any alternatives that are available?
The simple answer to this is a yes. There are several options for individuals who require instant cash quickly other than the payday loans which are similarly much cheaper as compared to the payday loan. Even if you are in a situation that needs you to obtain cash instantly in twenty four hours, there are obviously several viable & less risky options in Singapore.
For example, a Singapore personal loan is cheap to obtain since most banks will process your application & provide cash in a day. They are similarly cheap, with an average of 6-7% interest rate and a few additional fees. A credit card debt too will only cost you 25% annually on average, & are immediate since you only require using this card when paying for whatever you require even if you are not in a position to pay the card balance completely any time soon.
Student Loan, Mortgage & Renovation Loans
If at all are aware of the reason as to why you require the cash, you might have some other venues of borrowing at a good rate. Generally, loans that are made for a certain purpose often carry with them a lower cost & interest rates. For instance, student loans & home mortgages often cost much little since lenders are aware of the reason why you require the cash. Loans for home renovation are similarly available for various home improvement projects. These loans possess lower risk since they contain more information concerning the borrower.
Payday loans are on the other side of the spectrum since the lender has no clue of the borrower’s information except the last paycheck. In this case, it’s highly recommended to check out other “specific” loans that are available in Singapore and designed specifically to suit your need. These loans will take long to process, but they are certainly worth considering.
Payday Loan vs Personal Loan
In case you require instant cash and you are trying to settle between the payday loan & the personal loan, it is recommendable to opt for a personal loan every time. Only in a few and rare circumstances where the payday loan will make more sense as compared to other options for instance personal loan. Below are some of the reasons as to why you should opt for a personal loan rather than a payday loan.
First, personal loans are not as expensive as compared to payday loans, particularly you’re your annual income is above S$30,000. A personal loan is supposed to cost you just 7% of the annual interest at its maximum & banks located in Singapore approve your loan in a day. Therefore it is an inexpensive means of obtaining instant cash.
Secondly, the Singapore personal loan is very simple in terms of management since one can repay it over a longer duration of time. Every payment may be classified into smaller parts that are equal as compared to the payday loan that can consume all your paycheck within a moment. Not just that, the lender will show you exactly the amount of money that you should pay monthly in order to clear your debt over time gradually.
Lastly, the personal loan may offer huge sums of money as compared to the payday loan. The number of personal loans which you can obtain is between 1000 to 10,000 dollars. Therefore in case of an actual emergency, the personal loan may be the best source of capital rather than trading the paycheck.
Credit Card as an option
Even in situations where you just require a few dollars which you wish to pay back instantly, other alternatives such as credit card still is a better alternative rather than a payday loan. Similar to the payday loans, credit card debt will not need you to be involved through an approval process. This implies that one can clear their debt whenever they wish want.
It might be a somehow difficult task of saving money while in Singapore. In the current high living costs such as MRT fares, CPF contributions & university tuitions, individuals might get themselves short of savings when you encounter any financial crisis. Sometimes, these kind of situations may need a financial assistance in terms of loans. All in all a payday loan might be an egregious type of capital available in Singapore. Ensure to consider other alternatives such as personal loans, cash advances & credit card debt prior to moving to the payday lender. In case you get yourself borrowing a payday loan more often, you need to reconsider your financial priorities & do your best in order to bring back your life in the correct order.
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Money has become most essential part of our life. People work hard day and night to earn money for themselves and their loved ones. Due to increasing expenses and prices of goods everyday it has become very hard for everyone to manage. The people of Singapore are also facing such issues.
You might have heard word “personal loan”, do you know what it is? Let me tell you what it is a type of unsecured loan bank offers to its customers without asking you where you spend the money you take on loan. It does not require to put any security against your loan. These personal loans are quite popular in Singapore for the past ten years. Singapore banks offer personal loans up to 5x of your monthly income. These loans are given on usually high interest rates and a period of 1 to 5 years. An annual fee of S$50. 00 to S$90. 00 is also charged by banks for the loan.
The government of Singapore has numerous licensed money lenders to offer personal loans to the people. It is very important for you to check your lender properly before taking any loans. Firstly, we need to see our lender is registered member of Insolvency and Public Trustee’s Office (IPTO). You should personally visit the office of money lender to check that your paperwork is done properly and documents must be signed after checking. Singaporean government is very active and alert to protect its people from illegal lenders. It emphasizes the use of landline numbers in advertisements from licensed money lenders. The personal loan
contract should be in easy to understand and benefit to the borrower. One should examine it closely and clarify if needed.
In Singapore family planning has to be done keeping in mind your finances. A baby doesn’t bring responsibility, but it increases your family budget as well. It’s very important to a have secured job before having a child. One you expect a baby, you should work on clearing your debts having higher interest rates so you save for expenditure on baby. One should must include baby on your existing insurance so that if something bad happens to you your family is secure.
There are two important things one should know before taking a Personal Loan. The Total debt service ratio (TDSR) helps us to determine whether we could spare the loan instalment from our monthly salary after deducting our current monthly expenditure. The next important point one should keep in mind is annual fees and late payment are charging your licensed money lender charges you. The late payment charges could be high up to 2.5% on top of your interest rate. If we keep these in mind before taking a loan it would benefit us to a great extent.
Now, we would talk about three main ways by which we can save money with Personal loans. First of all, we should look to clear our loans with higher interest rates with loans with smaller interest rates so it helps us to save money. Second way could be the amount of money you are taking from personal loan to invest it in a side income or side business. This would certainly help you in paying off your instalment and would bring more income for you. The third way is to upgrade your skills or qualification.
You must have also heard about Payday loan. Many licensed money lenders offer payday loans in Singapore. Then comes a question in our mind should be we take payday loans or not? One-word answer to this would No, as payday loans are very short-term loans offered to serve your financial need. One should be able to pay the payday loan on promised date, otherwise it incurs a hefty penalty on the borrowers. One should only be thinking of taking this loan when you have funds to pay from your monthly pay.
If you have an urgent requirement of money, and you are really confused to choose between Payday loans or Personal Loans, let me tell you the difference between both. Taking which loan would depend upon requirement and when you will be able to pay off your debt. If you want less money urgently and you think you can definitely pay in short duration with high interest rates, then you can go with payday loan, but if you need a higher amount of money and want to pay it in a year or two with ascomparatively lower rates than a personal loan would serve you better and would be appropriate for you.
When you need something you always take advice from your friends or colleagues. Let me make you aware about 5 false things you must have heard from them about Personal loans. Never ever take a personal loan to pay off your credit card debt, it is not right. Don’t think personal loan is the most expensive of all loans that are available in markets. It is better than taking payday loans or cash against credit cards as it saves you from higher interest rates. Never ever use the money of personal loan to buy a luxury item as it should be only used in emergency situations such as a medical problem, wedding, etc. People around you always say every licensed money lender or bank charges same interest rates but please survey market because that’s not true. Similarly, you don’t need a high credit score to avail personal loans.
We have heard people saying save money for emergencies, it is very important, but the question is how? One can take help from a financial advisor, who can help you manage your expenditure wisely and help you save for emergency funds. It does not matter if you save little initially because in your future you will see it gradually increasing.
With the latest conditions prevailing in Singapore people say that their retirement saving would not be sufficient
enough to survive for them. They would require to work even after 65 years for extra income to cope up with their monthly expenses. Considering your lifestyle, we would advise you to please plan for your retirement wisely and start saving from today so that you could have relaxed life in your old age when you cannot give you 100%.
At the end, we would say money is definitely having become one of the most important and essential part of our life. We need it from morning till we sleep at night, so plan everything accordingly and save more and choose the correct option to avail loan at the time of any crisis or emergency. Hope this article would help you in making correct decisions about your financial need.
https://credithubcap.com.sg/wp-content/uploads/2018/01/All-about-Personal-Loan-in-Singapore-.jpg7001200Carina.Whttps://credithubcap.com.sg/wp-content/uploads/2016/08/credithub-logo-wh-400.pngCarina.W2018-01-19 13:09:072018-01-24 13:16:56All about Personal Loan in Singapore
When it comes to money lenders, personal loans, banks, and other types of borrowing, there are quite a few myths out there. SO, how do you know which are right, when to borrow, if you should take out money with a money lender? If you are even considering it, you will find there are some ways which are better than others for you to borrow. But, there are some misconceptions you have to learn are simply not true. So, let’s take a look at these, and what you do actually have to know as it relates to borrowing, in order to ensure you are going to make the right choices when you do have to take out a loan, with a lender, for any reason.
Why do I need a loan?
Even if you are financially adequate and pay things on time, it is good to borrow. From making a big purchase, to building credit, if you pay it back on time, and are paying your lender within the given parameters, you are going to find it is a good way to build credit and to build up your financial history.
Emergency: it won’t happen to me – Yes, it will; and, the worst thing is you can’t plan for it. So a loan is a good route to go if you do not have emergency funds set aside and need cash so you can care for your family.
Market won’t change – If prices increase, rent goes up, how do you deal with these changes? Both long and short term changes occur, so you have to plan accordingly when they unfold.
I earn enough – This might be true; but, again, there are reasons to borrow. Even if just to build up your credit worthiness, a loan can help you do this.
Land – Yes, this is a great resource to own. Not only for use, but as an investment; and , as it is costly, a loan is a good way to help you pay for it.
I don’t need the loan – So, you are at home and don’t pay rent. If nothing more, you can take out a loan for cash flow and to help you save accordingly. You’ll be thankful when you are out of their home and need to pay your bills.
Loans vary – Yes; many people aren’t aware of securities, personal loans, money loans, payday, etc. There is more than one type and each differs, you should know what each offers.
Secured loans – What is it? Basically you are securing it with an asset (car, home, etc). Depending on why you need a loan and amount you are borrowing, some lenders will require a security to be put down when you borrow.
Good and bad: Secured – The good is obvious, you can borrow more. But, the bad is if you do not pay or are late on payments, your security (the car, the home, etc.) are liens. So, you don’t regain possession until the loan is repaid in full.
Unsecured – Obviously this is the opposite of secured. You are not required to put down a security in order to borrow. But the trade off is usually a higher interest rate and shorter period for you to repay the loan you are taking out.
Unsecured: Good and bad – With unsecured loan, the good is not having to put down anything in order for you to borrow. On the flip side, your bill is higher, you are going to pay more interest, and you will have to repay the loan in full, in a shorter period of time than is the case with the secured loan in most cases.
Money lenders – There are some which aren’t licensed; if you are borrowing in Singapore, this is the last thing you want to get into. If a money lender is not licensed, do not borrow with them. You want to know you are doing business with a viable, reputable company; for such reasons, it is best to go through a licensed, not un-licensed lender when you do borrow.
How do I know? – Licensed money lenders are listed with Singapore governmental agencies. Also, most will have some notification. If they are not licensed, you are also going to find it quite obvious to see they are not licensed as lenders. Do your research and shop around before you borrow.
What do I look for? – Apart from a lender being licensed, make sure they are reputable. Make sure they offer various loan terms. Look for those which have a great reputation, reviews, and guarantee the loans they are going to offer. There are plenty out there, it is up to you do the research before you do borrow with them.
Reliability – A lender should have numbers on their site. They should be backed by the government and banking industry. They should also fully list out all terms, and provide you any information you require. If they do not, then you should not borrow with them. You have to know what you are doing and who you are dealing with, so do your research.
How about rates? – You have to shop; although most money lenders have similar rates, this doesn’t mean they are equal. So you have to take your time to compare, and see which ones are offering the best terms/rates, and repayment options. When you compare, you will find the best rate.
I’m still confused – You are not alone! There is plenty to know and plenty of terms to weed through. So, compare and shop around. This is the best way to know what you are getting into, and to ensure you do find the terms you can actually keep up with as it relates to paying a loan.
There are many misconceptions around money lenders and the financial sector as a whole in Singapore. But, if you do your research and if you shop around, you do not have to deal with unlicensed lenders. Make sure you know what you are doing, what you are signing, and who you are dealing with, before you do choose to take out a money loan in Singapore.
At present, the cost of living has become very high, and an incredible number of Singaporeans are constantly trying to fulfill their never-ending demands by taking personal loans from various sources such as a financial institution or a licensed money lender in Singapore. Although Asians are deemed to be sensible consumers by the West, we’ve been increasing our expenditures to such an extent that it has resulted in a miserable debt crisis which is worrying us at present.
According to a recent statement by HSBC, it has been unveiled that in 2013 the household debt of Singapore has increased to approximately 73% from a modest 48% prior to the worldwide economic crisis, and this is a significant increase in comparison to the ratio of the UK which is about 72%, a pretty much steady figure from what it was before six years. In fact, consumer debt has encountered a sharp upswing throughout Asia during the past few years. In contrast to the overall perception, instead of being restricted only to housing purposes, the purchases included luxury vehicles, motorbikes and anything that the heart wishes.
Why Individuals Are Getting Into Debt
Approximately 3% of the debtors with unsecured loans in the country go beyond their yearly income. The majority of the debtors who are facing debt-related problems have tertiary educational qualifications and their incomes are more than the average. As observed by Credit Counselling Singapore (CCS), the subsequent list of most often cited causes of becoming obscured under a massive pile of debt definitely makes for an unexpected yet harsh reading.
Splurging and Overspending
Our population tends to spend big, and this has resulted in a poor practice of borrowing bigger amounts. In fact, overspending has been described by more than 49% of all debtors in Singapore as the major cause of borrowing.
Job issues including retrenchment and pay cut
A tough competition from job issues is confronted by splurging these days. According to recent statistics, roughly 46% of the debtors are folks who have experienced substantial pay cut or were retrenched.
Business or Entrepreneurial crises
Next, in line happen to be the business proprietors who experienced a surprising issue with the flow of cash. Cash from unsecured credit cards have been employed by them for funding their business and they have eventually experienced enhanced financial issues. According to CCS, approximately 22% of the borrowers believe that their businesses are responsible for the increasing debts.
Unexpected medical expenses
According to another 22% of the debtors, the purpose behind borrowing is the vital factor behind any unanticipated costly medical expenses.
Gambling, which is a significant issue at present, has been accountable for dragging around 22% into borrowing. In fact, approximately 2% of the borrowers were hauled in by gambling in 2004. During the initial 2 quarters in 2017, this figure has risen by 17%. However, although it was 31% the previous year, it has plummeted down since then.
Absence of savings
The problems of escalating debt have been accentuated by the sheer lack of saving for the future. We need to instill this habit of hoarding funds in our behavior. One is able to remain independent economically by saving on a regular basis, and he can likewise provide for any unexpected expenditure, invest in an automobile or home, provide for any unexpected emergency, and most significantly, lead a stress-free life by staying out of debt.
Little investment for boosting wealth
Money management likewise demands regular as well as smart investments to obtain decent payoff with low or minimal risk. One will be able to save on tax with smart investment and can also generate significant wealth over time from even a constrained income.
How to avoid getting into debt in Singapore
Even though the cost of living is extremely high in Singapore, it is feasible to lead a life free from any debt. Only some commitment will be essential on your part to make the finances spiral downwards. The subsequent 10-step plan will help you to stick to a healthy habit of money management by giving up the practice of borrowing.
1. Your debt amount
Determining the exact amount of your debt is probably the most crucial and major step. Make it a habit of creating a list that contains the credit types, the amount owed by you, the lender particulars, and the interest rate for every single debt. Otherwise, it will likewise be a sensible idea to take the help of any credit reference agency for figuring out your credit record. Although it is quite difficult to confront with your debts, this tip is essential for you to become free from debt in the long run.
2. Share all your worries
Consider communicating with your partner in case the exorbitant debt makes you nervous each time you think of repayments. You will be able to get rid of all your anxieties and tensions by discussing your problems with your loved ones. If this does not work, it is advisable to contact a competent debt consultant with whom you can share all your problems.
3. Figure out your expenses
It is time to think of a personal debt repayment program given that you are ready to face the challenge. However, it is crucial to determine the exact amount of outflow and inflow of cash in order to comprehend how much you will be able to pay out each month.
A budget can also be created where you can mention all your monthly expenses against your total earnings. You must perform this for an average period of the last six months. Taking the assistance of your partner will also be a good idea since this will give you a comprehensive idea regarding the regular flow of cash. You will be able to perform this accounting without any issue thanks to the free expense applications on your iOS or Android.
4. Analyze and evaluate your expenses
Knowing the exact expenditure statistics will allow you to determine any specific area where it is feasible to cut back successfully so as to open up even more earnings. There is no need to make any significant changes to your current lifestyle for saving a significant amount of cash. You can accomplish this by reviewing your recreational as well as regular expenditures.
5. Evaluate your spending habits
Be aware of your daily spending habits after cutting down on your regular expenditures successfully. It is definitely useful to control the desire of frequent splurging or even overspending while you are considering repaying your debts. Instead of robbing you of all the pleasures of your life, budgeting is actually an innovative way of thinking, apart from being a level of compromise.
6. Evaluate your debts
It is possible to increase debts substantially by the excessive interest rates which can cause it to surge quicker than what you can manage to pay back. You can likewise minimize the amount of reimbursement by rearranging the debts to credit cards and other cheap loans in a sensible way. This is certainly not the same as borrowing more cash for repaying debts – an extremely hazardous approach that ought to be avoided.
7. Prioritize your debts
It is time to commence clearing the debts once they are evaluated and you have curtailed your spending behavior slowly. Paying back the most pricey debts, in the beginning, is the most efficient as well as smart technique. This way, you will be able to prevent counting and also giving away costly interest rates.
8. Utilize the savings
It would be a wise decision to utilize your current saving funds for clearing up the debt in case you truly want to save while keeping away from the reimbursement of high monthly expenses. It is because, as compared to any small savings which can be achieved during the identical period, a delayed debt will prove to be more expensive.
9. Change your spending routines
You require changing your perspective towards spending if you want to remain free from any debt. The way you approach funds can often be transformed by this terrifying experience of debt. For this, you require to revert to the fundamentals and live without making any significant expenditure. It will be feasible to prevent borrowing by taking care of your income cautiously and more prudently.
10. Begin saving and turn it into a practice
You will be able to prosper during the next few years by saving a substantial amount of money. After those debts have been paid back, you must commence saving which will allow you to stay away from borrowing a significant amount of money in future. Prior to thinking of other investment alternatives, it will be advisable to develop a cash fund for effortless access. Apart from this, you will likewise need an emergency fund for you as well as your loved ones.
Even though you might be leading a costly and busy lifestyle in an expensive nation like Singapore, it is possible to live without debt. For this, you need to have a proper mindset and you must plan smartly so as to prevent any insurmountable debt. You can easily avoid getting into debt by developing your saving skills and having a better approach towards cash. It is time to start saving right now after rationalizing your budget.
https://credithubcap.com.sg/wp-content/uploads/2017/12/credithub-01.jpg7001200Carina.Whttps://credithubcap.com.sg/wp-content/uploads/2016/08/credithub-logo-wh-400.pngCarina.W2017-12-08 17:14:202017-12-08 17:14:20Are you able to live in Singapore without getting into debt?
Getting your business through the first few years can be pivotal and requires you to have working capital to cruise through without tragic hiccups. However, not always do we have enough money to keep those operations running smoothly, and you may need to get a loan from money lenders in Singapore for those dreams of more clients, business expansion, and better earnings to start taking shape. That said, getting a business loan is not something you just wake up to, you need a working plan, vision and most of all preparedness.
Apparently, the first instinct that kicks in is that you want to maintain or grow your business into an authoritative enterprise. Well, as much as that is true, you need to dig a little bit deeper and be more specific with your objective.
Entrepreneurs borrow loans for all manner of reasons. For instance, one may want to increase the production of cupcakes especially on specific days when they experience a bump in demand like during valentines or Christmas Eve. To successfully satisfy the market without having to forgo the quality of your product, you will need to consolidate additional working capital, and that might mean hiring an extra pair of hands.
Reasons for getting a small business loan are endless and only vary from one person to another. Whether you intend on buying new equipment, settling existing debts, or renting a new place for expansion the rule of thumb is to identify it on your business plan as it will keep you focused. It might prove helpful to see your loan as an investment that will help your company flourish in the future.
2. Are you in a position to repay the loan?
Many times when getting a loan we focus so much on the interest rates and quickly forget about other fees that banks and financial institutions are capable of charging us. Conduct a financial analysis. Knowing whether you can repay the loan you are taking is just as important.
It is prudent that you compare loans and go even further to ask for quotes. Online lenders are ideal and desirable for business loans. The primary obstacle with banks is that their loan packages are fixed and lack the fluidity to cater for the unique needs of your business entirely.
3. How urgent is the loan?
Depending on how soon you may need the money, banks fail flat out when it comes to immediate loans. For instance, a business opportunity presents itself without as much as a warning as they often do and it requires quick reaction on your part. Like that equipment you have been tracking for a while now is suddenly up for sale but coincidentally you lack enough funds to purchase it. Waiting is no option either for buying it now will save you a lot more. You cannot rely on the bank loans as we all know how they can stretch for weeks to get processed and even then does not guarantee positive results.
Online business loans provided by licensed money lenders in Singapore boast of a shorter process that can take as little as less than 24 hours to get processed.
4. How much working capital do you need?
First, go to your accountant or bookkeeper for financial advice. Then make a realistic business plan that adequately addresses your needs without excluding anything vital. Rule of thumb, borrow only the amount you need. Acquiring a loan comes with a financial responsibility that you must meet to avoid severe penalties such as bad credit score.
Utilize loan calculators as they are essential in letting you on the know when it comes to the total amount you have to pay and all the repayments on your loan term option.
5. What type of lenders do you need?
There are various types of lenders out there and so are their loan products. The good news is that traditional banks no longer limit your options. Recall that banks offer rigid business loans that do not blend well with your business’s goals and have strict lists of eligibility.Registered money lenders provide by far the best loans suited for your small business.
6. Are you willing to share your story with your lender?
Moneylenders will want to get an idea of your business by asking about the nature of your business, earlier ventures, credit experiences and set goals. To gain trust and get on their good side you need to show them that your company is both lucrative and has a massive potential for so much more. This reassures the lenders that you are capable of repaying the loan, and therefore they are more willing to hand out the cash. To achieve such a milestone you need to reveal who are your clients, ways you manage your business, how you deal with your credits and the achievements you have made so far.
7. Are your documents prepared?
Money lenders are very wary of dishing out money to individuals who lack a solid financial background. They are very strict when it comes to qualification, and you need to show them documents that prove that your business is thriving and thus worthy of the loan. These could include bank account statements, Income Tax Notice of Assesment and other financial reports.
8. Is your credit score good enough?
Before applying for any loan, it’s critical that you get a copy of your credit score. Knowing your credit score sets you up nicely for the next move you need to make. Firstly, it cautions you on the type of lender that is best suited for your needs or whether you should wait a little bit longer to build your credit score before applying. Why?
In most cases, a borrower with a poor credit score is automatically rejected: wasted energy and time. Moreover, a loan application further dents your credit score because every loan application is taken into account.
9. Do you have other debts?
For those that have debts, you need to prove that you have sufficient cash inflow to contain additional financial responsibilities. It is always advisable not to hide any indebtedness from your lender because sooner or later it will show when they go through your credit report. For the sake of argument let’s assume that you manage to get away with it, the financial demands will certainly overwhelm you making repayment an even more daunting task
10. How has your relationship been with previous moneylenders?
I cannot emphasize enough how rewarding it is maintaining a positive relationship with your lenders. For one, you are quickly entered into the pre-approved list. Secondly, You are teaming up with an intimate financial partner that you can quickly turn to for another loan because of you long-standing and trustworthy relationship. Also, the loan approval will be quicker for you and perhaps with more substantial loan amounts.
We understand that applying for small business loans is frustrating but getting acquainted with the processes involved can shed off some weight making it more worthwhile. Plus at the end of it all, you will be more knowledgeable and wise to pick an option that best meets your unique needs.
https://credithubcap.com.sg/wp-content/uploads/2017/11/10-simple-steps-to-follow-when-getting-loan-from-money-lenders.jpg7001200Carina.Whttps://credithubcap.com.sg/wp-content/uploads/2016/08/credithub-logo-wh-400.pngCarina.W2017-11-24 12:34:072017-12-08 17:24:4210 simple steps to follow when getting loan from money lenders
If you need cash, you might’ve heard of licensed money lender in Singapore. But, who are they, what do they do, and how are they different than a traditional bank lender you would go to when you need to borrow cash? If you are reading this, these are a few of the questions you have, and need answered. Most banks simply are not going to lend money to those who earn $3500 a month but owe over $5000 a month to creditors; you are a risky borrower and you run the risk of default. On the other hand, a licensed money lender in Singapore might.
Licensed money lenders
In Singapore, these lenders are licensed by the Registrar of money lenders to provide loans to borrowers. Restrictions on how much can be lent, and fees they can charge, are put into place. Money lenders are businessmen, a good reputation is important to avoid scaring off potential borrowers. When chasing down borrowers who owe them money, it is done in a similar fashion as banks. Smaller loans, speedy lending, higher interest, and forgiveness of lower credit, are a few of the reasons people turn to money lenders, if they know they won’t get a loan with a bank, or if they have been turned down by a bank and still need to borrow money for any reason.
1. Smaller loans
One institution offered me $1500, even though my income was over $30K when I contacted them. But, with these money lenders, legal restrictions is 2-4 times your monthly income, in terms of the amount they can actually offer you in terms of a personal loan. So, for those who are in dire or urgent situations, and only need a small amount to borrow, a money lender may be a viable option. If on the other hand, you need to do major work, or require a much higher loan amount, you probably will not get what you need, or the amount you desire, when you turn to a money lender in request of a loan.
2. Speedy service
Flexibility is nice; with most lenders, you will be approved instantly. So, there is no wait period, or several days to weeks, until you find out if you are going to be approved. Again, they are here for smaller loans, so you are not going to have to jump through hoops in order to be approved for the loan amount which you are asking for with these lenders. If you don’t have the best line of credit, you still can possibly be approved with a money lender. Again, lending limits are lower, and you might not get as much as you request, but you are still far more likely to get an approval, as opposed to going to a bank, which is probably going to outright decline the offer for any loan amount you request.
3. High interest
By law, money lenders must discuss this with a borrower face to face. So, you are going to know what your interest rates are, and what they are based on, when you choose to take out a loan with a personal money lender in Singapore. You are likely going to be looking at something in the line of 20-30% with most lenders, so you shouldn’t be surprised if this is the figure you are getting when you apply for a loan. You will pay a higher interest rate for convenience, and the instant approval you are going to get, when you choose to go with a money lender, as opposed to going the traditional route and taking out a loan with a bank lender.
4. Credit assessment forgiveness
When it comes to credit score, and credit worthiness, money lenders are not nearly as picky as a bank. In fact, as long as you have the income, and the proof you can repay it, and as long as you meet their terms (live locally, age,etc.) most money lenders you do apply for a loan with, are likely going to approve you as a bad credit borrower who approaches them. Keep in mind background checks are still run. So, if you have high debt with plenty of credit cards, or if you are in default or still owe several other money lenders, there are many money lenders who will not extend you a loan offer. And, with just cause. but, if you were late on a few credit card payments, or if you have a few other negative marks on your credit report, this is not an auto rejection, as it might be, if you were to approach a bank lender when trying to take out a loan. So, even if you feel you might not be approved, it is worth applying if you do need a small cash amount, and you do not have anywhere else to turn to for the funds.
Banks are not going to be nearly as lenient. And, with a bank, you are going to wait at least a few days for an approval, if not a few weeks, when you are applying for a loan. So, for those who only require a very small lump when they are borrowing, do not want to wait it out, or simply have no other alternative, a money lender, even though they are going to charge you a high interest rate, may just be the solution you have been looking for, when the time comes to take out that personal cash loan.
When the time comes for you to apply for a small cash loan, there are quite a few options out there from which you can choose as a borrower. So, even if you are a low or poor credit borrower, or have outstanding debts which you do owe, it is still quite possible you are going to be approved when you go through a money lender. Above are a few of the differences you are going to find with these lenders, which you are not going to get if you were to try to take out a cash loan with a traditional bank lender in Singapore.
https://credithubcap.com.sg/wp-content/uploads/2017/11/Knowing-the-differences-between-Licensed-Money-Lenders-and-Banks.jpg7001200Carina.Whttps://credithubcap.com.sg/wp-content/uploads/2016/08/credithub-logo-wh-400.pngCarina.W2017-11-17 10:00:412017-12-08 17:26:15Knowing the differences between Licensed Money Lenders and Banks
When it comes to personal loan in Singapore, some people are afraid of borrowing, others believe loans are superior to credit cards, and a third group actually knows how to utilize these funds. When applying for a loan such as personal loan or payday loan through a licensed money lender in Singapore there are certain myths you need to weed out as a borrower. Below are a few of the myths many people have, simply because they don’t understand how the loans and the repayment terms truly work.
1. Only those who need cash should borrow them
This is true on one end, but there are many ways to utilize these loans. If you wish to consolidate debts, build up your credit score, or pay one larger bill with the personal loan, at a lower interest rate, why not use these cash funds to do so? Anyone, even those with stellar credit, and available cash, can benefit from the persona loan, as long as they know how to properly utilize it to their benefit.
2. I will simply increase debts
Again, this isn’t true. As a matter of fact, the right loan can help you get out of debt faster. When you use it to your power, you can pay off other debts faster, such as credit cards. And, with a much lower interest rate, this will help you get rid of debt faster, for less, and still have cash in hand for other items you need or wish to buy.
3. I should take out more than I need
This isn’t true either; in fact, with loans over $1000, a 9% and higher rate can apply. So, if you do not need this much, a lower borrowing limit will keep the interest rates down as well. Why would you take out more than you need? Isn’t this what has gotten you in trouble with credit cards and other forms of debt in the first place? Don’t get into the vicious cycle. When it comes to taking out the loan, only apply for what you need, as this is going to benefit you and help you build up your credit as a borrower over time.
4. I’m in debt, why take out more?
Think of it this way. Your credit cards are charging you up to 24%; with money loans, you can pay as low as 6-8%. So, why not pay off higher debt, with a much lower debt form of borrowing? If you use the funds appropriately, it will make far more sense, and it will allow you to eliminate those higher debts and interest rates, in a much shorter period of time as a borrower. So, borrow, but do so wisely, and make sure you are paying off the higher interest rates accounts first.
5. Its better than a credit card
Yes, but not. With loans higher than $1000, the 9% and higher interest rate kicks in. So, if you aren’t careful, it can still add up and take a toll on you financially. If you know how to use it wisely and are only borrowing what you need, it can benefit you. But, bear in mind, if you are a high credit borrower, this is not the cheapest way in which you can borrow cash. You should shop and compare prior to borrowing, in order to ensure you are truly going to find the best rate when you do borrow cash.
6. I don’t meet the income requirement
Most banks will require a $30,000 annual income to even consider you for a loan; if you don’t meet this you should instantly go to a money lender, right? Not necessarily. With a very low income level, many lenders will charge you a significant amount of interest, as you are a riskier borrower. So, you still have to be careful where you are borrowing, and fully understand the terms of your loan. You can borrow mindlessly and just hope things work out. You have to know exactly what you are getting into, to avoid getting into a situation which you can’t afford.
There are a number of myths as it pertains to loans and money lenders in Singapore. But, when you know what you are doing, you don’t have to worry about falling into the trap, and getting stuck with high debts you can’t afford to repay. You may also read on: Are you in need of a Personal Loan for Low Income Singapore?
https://credithubcap.com.sg/wp-content/uploads/2017/11/Should-You-Take-Up-Personal-Loans-in-Singapore.jpg7001200Carina.Whttps://credithubcap.com.sg/wp-content/uploads/2016/08/credithub-logo-wh-400.pngCarina.W2017-11-10 10:00:052017-12-08 17:27:52Should You Take Up Personal Loans in Singapore?
Let’s be real frank right here – Money makes the world go round, you couldn’t agree more with this, isn’t it? Being ranked as the top cities to live in, Singapore is unfortunately the highest cost of living city in the world. In fact, just when you thought the cost of living couldn’t get any higher, you are so wrong. Everything is increasing, like the healthcare, housing, petrol, food, basic necessity but the only one that stays stagnate would be our salary. Most Singaporeans couldn’t agree more with this and it is extremely difficult to save up on monthly basis due to the monthly bills and commitments as well.
According to Singapore Business Review article, almost half of the Singapore population have little or even no savings at all. This is a saddening polling results. Fortunately, this is not the end and there is still possibility to turn your financial situation 180 degree around. It is time for you to take a leap of faith, you need to start building up an emergency fund and the future you will be thankful.
Why is emergency fund necessary?
We all know that accident happens, anything can happen anytime and at any point of time. Unless you are equip with special superpower to predict the future, if not, there is absolutely no way you can know when will an emergency arise. All it takes, is just one major event to drain you out and leave you in debts. Times like this, what are you supposed to do? Approach your friends and families for help? How much help can you get? What if you don’t?
This acts as a financial buffer for you as it protects your savings from unforeseen circumstances such as:
1. Medical Bills: In Singapore, most of us are protected by MediShield and able to use Medisave, but you still need to take out a sum of cash to pay off your expensive bills. It all depends on the conditions, the length of your stay and the class of your ward. All these can easily drain off your savings.
2. Home Appliances or Auto repairs: Having to repair your car and aircon can be quite be quite draining as the cost can go up to 3 digits or even 4 digits, depending on the conditions.
3. Loss of jobs: As Singapore is experiencing economy downturn, the retrenchment rate is rising. In the event of retrenchment, despite having one month salary compensation, you are expected to have at least 6 months worth of savings (after you minus the expenses) to keep you financially afloat.
Hence, this is why you should always have an emergency fund!
How much do you need for your emergency fund?
First thing first, how much do you need to your emergency fund? How much is considered enough?
There is no absolutely answer but it is good to always follow a guideline and it also depends on your monthly income. If you are expecting a fixed income every month, the possibility of saving up for an emergency fund will be more easy peasy as compared to those doing part time casual jobs. Having a fixed income monthly will be easier as you have a calculations as to how much cash flow you are expecting each month.
Ultimately, the most ideal plan will be building an emergency fund of at least 6 months worth – factoring the remaining monthly savings after you minus the expenses such as insurance, utilities, transportation, groceries, credit cards repayments and etc.
How do you build your emergency fund?
There is absolutely no short cuts to save up an emergency fund. It boils down to a few factors such as your financial situation, you individual discipline and determination as well. Emergency fund might take slightly longer time to build if your monthly salary is acceptable whereas your expenses are very high. But then again, you know that everyone has to start somewhere and it is essential to start building because you are unable to foreseen any unconventional events.
Let’s say for instance, you make a fixed income of S$4,000 a month but your liabilities take up about S$3,000 – that leaves you with about S$1000 a month to put into your emergency fund. If you need at least 6 months’ worth of expenses to build up your emergency fund – that means you’ll need at least S$18,000 – which will take you 18 months to build if you put in S$1000 every month.
Do remember that it is not all about the speed, it is about the process and getting there. No matter you take how long, I am sure you’ll reach your goal eventually. There might be distraction along the way but you should know what’s best for yourself. If you have free time on your rest days, you might want to take up side income to help you achieve your goals.
https://credithubcap.com.sg/wp-content/uploads/2017/11/Emphasising-On-The-Importance-Of-Emergency-Fund.jpg7001200Carina.Whttps://credithubcap.com.sg/wp-content/uploads/2016/08/credithub-logo-wh-400.pngCarina.W2017-11-03 10:00:112017-12-08 17:29:02Emphasising On The Importance Of Emergency Fund
You know, tough times come and go. There are instances when you may experience comfort and zero worries with your finances, and everything seems to be running smoothly in your life. However, you may also experience some difficulties when emergencies arise. There may be a need to have an access to extra funds to cover for unexpected expenses, and it is not everyday that you have dispensable money for these situations.
This is why it is a good thing that there are numerous licensed moneylenders in Singapore that offer loan services to you in such times of financial crisis. You can approach them for assistance whether you have a credit card bill that needs to be paid right away, a hospital expense that just cannot wait any longer to be settled, and a few other similar instances involving the need for emergency funds. They provide services such as personal loan, payday loan, low income loan, foreigner loan and even SME business loan. Since asking for money from friends and family members is not always a practical or reliable thing to do, it is best to go straight to people who can give you an assurance of receiving the amount you need.
But then again, you should never blindly approach a moneylender in Singapore without having sufficient information about the services and products offered. Most importantly, you want to be sure that the said business is legal with all valid licenses and paperwork present. Also, it is best to steer clear of the so-called loan sharks that may only mean bad news to borrowers.
Here, we discuss further how to identify a loan shark from a licensed money lender. By having a clearer understanding of the two, you can choose a better company for your financial concerns to get the kind of service you need during challenging times.
These are the guidelines to follow:
All businesses in Singapore are required to operate by complying with certain guidelines and regulations set by Ministry of Law (MLAW). There are standards to be met, and they should not fail to follow these to avoid penalties and legal consequences that could impact their business. For instance, the maximum amount to be loaned and the interest rates involved are all set by authorities in the money lending industry. These businesses cannot simply offer an unlimited amount of cash that clients can borrow since it all depends on their income.
The same holds true with the interest rates to be paid along with the principal amount borrowed. The interest is calculated based on how much the borrower makes per year. So, it is controlled and should be astronomical, and only licensed businesses recognize this policy as they do not want to suffer from having their license revoked by the government.
Professional Loan Application Processing
Only licensed and legal moneylenders can offer you a professional and efficient time during the time you apply for a loan up to the moment you visit their office for verification checks. This is why people who need fast cash consider approaching a licensed moneylender because there is a shorter waiting period before the feedback on their application is received. In banks, the whole experience may be more tedious, not to mention the complex paperwork, credit history checks, and other processes involved.
Yet, you have to be wary of the fact that loan sharks may take advantage of borrowers who are in dire need of emergency funds. They may not only make the loan application process a little tougher, but they may charge high interest rates at the same time. They are aware of your need for extra cash, and they use this knowledge to take advantage of you. No paper trails or written contracts are provided, so there is no way for you to determine the actual cost of interest rates and the schedule of loan payment.
Licensed money lenders implement a system that helps them determine the credit rating of a borrower. Of course, their tolerance or standards for the credit rating is reasonable, yet they only provide small loans. Your salary is also considered when you apply for a loan aside from your employment status and credit score. But the main thing that sets them apart from loan sharks is the presence of a written contract. You are provided this piece of paper that clearly stipulates information about the interest rates and schedule of payment.
Another thing – there are instances when licensed lenders may reject your loan application. This is usually the case when you have existing debts with other lending companies and credit card debts that remain unpaid. As it is a case-to-case basis, it is always good to consult a loan specialist for assistance with your individual concern.
Banks normally offer lower interest rates as they provide secured loans to clients. But you have to understand the fact that there is a collateral you need to provide before your loan is approved. The asset should also be valuable enough to pass the bank’s standards. This makes the experience tedious when you are applying for a bank loan.
With licensed moneylenders, there are specific interest rates charged on top of the principal amount. The fees are also regulated, so there is nothing to worry about astronomical fees to be settled. But the same does not apply to loan sharks. In fact, be prepared to pay about 100 to 200 percent interest rates that should be settled along with the principal. Unfortunately, this is beyond your control since there is no contract to defend your stand.
Licensed lending companies provides regulated interest rates to borrowers. This is why you can calculate how much you should pay monthly – and there are no surprises along the way.
Zero Threats or Harassment
As long as you borrow money, the amount should always be settled according to the designated time of payment. In addition to the principal, the interest rate or any other fees must be paid as well. By doing so, you may qualify for an opportunity to loan money again if the need arises in the future. But you see, loan sharks may threaten or harass whenever they collect money. If you are unable to repay the loan, you may come across such lenders who threaten clients over the phone or through SMS just for you to settle the amount. Loan shark runners harass clients, and the whole experience can be unnerving.
With licensed money lenders, you may receive written notices as reminders for your payment. You do not have to worry about receiving calls from them left and right and telling you to pay up. But of course, you still have to produce some payment since the interest rate just keeps getting added to your principal amount as long as it remains unpaid.
It is never too easy dealing with money problems. You may constantly worry about how you can pay your credit card bills, or what to use to have your car repaired. Asking for emergency funds from relatives may be a very tough experience, and your request can also be rejected or declined along the way.
Meanwhile, your bills need to be paid and there is no way for them to go away unless these are settled. This is why it makes sense to consult the right company for your loan needs. Simply going with loan sharks is never a smart idea considering the astronomical fees involved and unfair loan repayment schemes. There is also no contract that can protect you legally, which makes things more complicated than it is.
If you need professional assistance in obtaining extra cash, be sure to consult a financial expert for your concerns. Always work with legal businesses that can give you an efficient and effective solution to your problems. It also helps to check reviews about the licensed moneylender to learn more about the services they offer, as well as actual feedback from clients who can give you ideas on what to expect from dealing with them.
Credit Hub Capital is a fully accredited, authorised and licensed money lender in Singapore. We specialise in providing our many clients with customised, flexible loan packages at reasonable low interest rates. We’re also proud to provide world class customer service with a smile each and every time. More About Us
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