Advice on borrowing

Need a Loan at some point in our lives, whether it’s a few hundred dollars to cover an unexpected bill or pay for a special event. But with so many different borrowing options available, how do you choose a suitable loan product?
It certainly pays to shop around and get the best one for your particular needs. The way we borrow has changed since the credit crunch. Previously, people used ongoing credit sources like credit cards or bank overdrafts, or long term repayment loans.

But this led to quite high levels of debt for some, which many consumers today wish to avoid. Instead, many people want to borrow small amounts over short periods to smooth out the peaks and troughs of their income and expenditure, but not to run up long term debt. A market has developed for small sum loans, repaid quickly and accessible through both high street outlets and online. This is a relatively recent development, and this form of lending is often termed payday loans.

Managing your borrowing
Borrowing can help you solve your finance difficulties. However, excessive borrowing can lead to finance difficulty. So borrow what you need! Make sure you have the mean to pay your monthly installment.

Penalties and Late Fee
Keep track of your monthly installment date to prevent hefty late Penalty Fee and Late interest. Read and clearly understand the term and condition of the loan you are taking. Understand the interest rate and all fee involve to avoid over borrow.

Guide to a short term loan
Borrow only amount you need.
Schedule the Repayment of the loan in the shortest period (duration of 3 months)
You can use this type of loan as an effective stop gap without running up long term debts.

Be responsible to your Loan Repayment
Responsible lenders are looking at building a long term business to provide small sums to an increasingly wide range of responsible customers. They are willing to give customer excellent service with the high standards, good quality products, They will turn your world upside down if you try to delay the payment or refused to make payment or worst when you try to avoid them. So set aside the repayment every month for your loan especially when you received your salary. Failing to do that, you will be upset over the default payment and in fear of the moneylender calling you and debt collector start looking for you in your office and home. You will face more problems when you even need to borrow another loan to cover the default loan. If you lake the capability to plan for yourself, get the someone to help you.

How to qualify for the loan
To be able to loan, the least criteria is that you will need to be a full time employee. Some company give quality package to customer with long working history rather than just short period of working experience. Fewer companies also give loan to foreigners which give an access for foreigner working in Singapore and make them at ease to their suddenly financial crisis.

Cost of the total loan
Make sure you understand the total cost of your borrowing. If it is not absolutely clear how much you must pay back, and when you must pay it, look for another lender who does explain this properly. Lenders have to provide an APR (annual percentage rate), but this can be a misleading way of comparing the cost of different types of loan.

A clearer measure is to compare how much you actually pay back on top of the amount you borrowed. Make sure you understand if there are additional charges should you fail to make a repayment on time. You need to know how much these costs are, and how they will affect your circumstances. Again, if your lender does not make this crystal clear – look elsewhere! Check to see if your lender is a member of a reputable trade association – the responsible ones are. Most Reputable lenders are members of the Singapore Moneylenders Association. Another loan may not be the right option if you are struggling to meet repayments on existing debts. If you have debt problems you can get free advice from the Consumer Credit listed in the forum Website

Don’t fall into Illegal Loan Sharks
Some flyers, sms or promotion letters claim that they are the licensed Money lender and can transfer money to you within minutes? Stay away from them! Always check their company name, licensed number and their registered address? If they cannot provide, you know where are they coming from! Do not give out your singapass to anyone! Licensed Moneylender do not asked you for your singpass. Licensed Moneylender need you to go to their registered office and signed the loan contract before give out the loan to you, not by TT. For more information about licensed moneylender, click here

What to look out for when you try to find a licensed moneylender?

  1. Get recommendation from friends and asked them about the experience and procedure to take up a loan.
  2. Find out as many informations the back ground of the licensed moneylender you intended to borrow from.
  3. Find out what kind of loan packages they offer and the repayment period. Do not stress yourself and try to fit into their package just because they offer you a loan. Think of whether you can make the repayment according to their schedule.
  4. Ask them for all the charges clearly before you go down to their office.
  5. Make sure the person you had talk to is the Licensed Moneylender.
  6. Many times the person who contacted you is just an unauthorized agent working for that company.
  7. Check the website for any negative feedback about this company before going down. If they have a website, you can also know more about this company and their service they offer.
  8. Ask clearly about the charges and compare the total amount take back compare to the total repayment and do your math. If the charges are too high, just tell them politely and leave.
  9. If you are a qualify and responsible borrower, you are sure to get a reputable and responsible moneylender that will lend you.
  10. To know more about borrowing, pls refer to my forum.

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