None of us want to amass debt over our lifetime, forced to forgo certain purchases and investments because we can’t think past the money we still owe. This is especially true in a country like Singapore, where it’s nearly impossible to buy a house or a car without registering for some kind of loan. As a result, we all end up swimming in debt by the time we reach adulthood, taking on too much debt in an effort to set up some kind of life for ourselves.
If you are tired of living with massive debt, or are incurring debt for the first time, we’re here to provide you with tips for mitigating your debt in Singapore. Are you ready to get started?
Clearing Your Debt
1. Create a Budget Sheet:
We all need help in the organization and management of our money. That’s why you need to create a budget sheet that reflects both your expenses and income amounts for the month, as this will prevent you from getting caught up paying your monthly installments. With this budget and everything out in writing, you will be able to prioritize your expenses from most important to least important.
2. Manage a Proper Debt-to-Income Ratio:
A general rule of thumb is to maintain a 35% debt-to-income ratio where the amount of money used to settle your debt each month should not exceed 35% of the money coming in. If you have a ratio that is higher than 35%, then it’s time to mitigate the debt you are carrying, consolidate, and figure out other plans. In this case: only borrow what you need so that you are cutting down on the amount of debt racking up.
3.Stay On Top of Repayments:
Late payments immediately impact your credit score, making it harder for you to secure fast loans with good rates. You can set up reminders for yourself on your phone, laptop, or on a calendar to ensure you are paying your installments in full and on-time.
4. Pay Off More (if Possible):
When you receive a loan, your number one priority should be paying off that loan. If you happen to receive unexpected money, like a bonus from work, be sure to put that money to good use and pay more than your monthly installment. This will shorten your debt payment period so you can see the light at the end of the tunnel.
5. Read the Fine Print:
There is always fine print when loans are concerned. Before you sign a loan, be sure to check interest rates and additional fees that might make paying off the debt nearly impossible. This is where a debt consolidation plan can come into the picture – see if you can combine different debts for one easy payment.
We provide you with access to fast loans that come with low interest rates and attentive staff so you can move on with your life. We want you to surge past the hold of debt, which is why you should consider a loan that is right for you.