Singapore is one of the most expensive places to live on the planet. There is no doubt that it offers so much comfort and convenience to locals and foreign nationals alike because of the modern technology and efficient way of life that the country is known for. The infrastructure is superb and policies are always on-point and sensible, so there is order throughout the country. It is also worth noting that in Singapore, you can find numerous options to shop and get quality items you need. There is no shortage of places to buy items for your home, office, or personal use. If you are very picky about the apparel you buy, you can always come across boutique shops that feature luxury brands that will match your delicate taste.
But then again, these things make life a little more challenging for Singaporeans when it comes to managing their finances. With the presence of shops to buy designer brands, or the lifestyle of keeping up with the technology and fads embedded in some people’s mind and habit, this makes it tougher for a number of individuals to manage their finances. Being extravagant in one’s way of life can lead to serious problems when you end up draining your bank accounts and accumulating massive debts in your credit card.
If you fail to keep your spending habits in check, then you may end up taking out more and more credit card debts and loans every month. While you may have a source of funds temporarily, the constant accumulation of debts will eventually cause your bank account to run dry. Thus, more serious problems arise, particularly if you are nearing your old age with the hopes of retiring in comfort and style.
What You Need to Know about a Payday Loan
When you find yourself short on cash, a quick and simple way to obtain extra funds is by taking out a payday loan from licensed money lender in Singapore. This personal loan type allows you to have an access to additional cash that will tide you over until the next paycheck comes. Thus, if you are in search of an efficient means to get the amount you need without the long wait, a payday loan should be the perfect solution for your concerns.
But of course, you have to be aware of some things that apply when you take out this type of loan. For the most part, the interest rate is not as low as how you imagine it to be. In fact, payday loans are known for their very high interest rates, so it is not something you should consider unless you have exhausted all your efforts on how to secure the amount you need for your pressing and urgent expenses.
This is why if you find yourself contemplating on taking out a payday loan, or perhaps hoping to get another one with an existing debt still waiting to be paid, then it may be worth asking yourself a few important questions to help you make a practical decision.
1. What are the other options available to you?
Perhaps it may be worth exploring other options when it comes to the type of loan you can consider for your needs. Always remember that a payday loan is not the only way out of your present financial concern. It is usually applicable to those who can no longer wait for days and weeks before they receive the money they need. Unless you are in dire need of extra funds overnight or in 24 hours, then a payday loan can be a smart choice for you. But if this is not the case, you may want to think about other alternatives for your situation.
Keep in mind that if you are eyeing a specific loan, the rates are also lower. This is why if you are thinking of getting a loan to buy a home or to pay for your tuition, then you should choose loans specifically dedicated for these purposes. Thus, a home loan and a study loan usually have lower rates than what you can expect from a payday loan. This is due to the fact that the lender is aware of your particular purpose for the money borrowed. Using your loan responsibly for your studies or for acquiring a home leads to lower rates as this gives lenders an assurance that you are responsible with your usage of the cash. Thus, this makes them realize that you are less likely to be a pain to deal with when the time comes for you to settle the loan payment.
So, think about your purpose for borrowing money. If you have specific reasons, then it may be best to think abut taking out loans dedicated for the purpose you have in mind. But if you are not granted of a loan for whatever reasons the lender may have, then a personal loan may be worth looking into as the interest rate may be a bit lower than what you can expect from a payday loan.
Once again, if the need for money is very urgent, or within the next 24 hours, then you have no option but to try your luck on a payday loan. The same holds true with a poor credit score because the approval rate for a payday loan is much higher than with other loan types.
2. Have you tried other ways to borrow cash from other sources?
There are probably some means for you to borrow money whether it is from a wealthy family member whom you are close with or a trustworthy friend whom you have known for decades. Also, you may even have a credit card that can be used for your emergency expenses. The interest rate is only charged when you fail to pay your bills on time. Otherwise, there is no problem at all with paying off a credit card bill without any upfront interest rate.
The idea is to try all other options first before deciding on getting a payday loan. You may even have multiple ways to make extra money by simply selling items online or setting up a garage sale. Cancelling or downgrading costly membership plans for your phone or at the gym may also be worth looking into for additional funds.
And if things get tougher, yet you really are not keen on taking out a payday loan, then it may be worth a shot to try asking your employer for a cash advance. If you have friends whom you can count on for your financial concerns, it can also help seeking their assistance when necessary. While it may be a little awkward to go to this route when you are in need of money, it is certainly not as traumatic as taking out a loan that you may not easily pay off because of the massive interest rates. You also run the risk of having debt collectors on stand by in case you fail to pay off your loans.
Conclusion
It is true that there are times when financial difficulties arise in our lives. These moments are inevitable and may leave us feeling stressed out with the hopes of getting by without having to take on a huge amount of debt. But then, if you find yourself constantly taking out loans, then it may be best to have a thorough examination of your finances. It may be the perfect time to start building your emergency fund and reducing your expenses, so you can have all your needs met without having to borrow money from others. This is one way to achieve financial freedom while eliminating the extra burden loan payments tend to cause if you all your wages end up going to that direction instead of in your bank account.
