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Living Paycheck To Paycheck? Why You Need To Stop This Habit Before It Is Too Late

Living paycheck to paycheck is a thing that most Singaporeans do. While it is assumed that those who live paycheck to paycheck are Singaporeans with low incomes (and so they can’t afford to save), this isn’t true. Some Singaporeans who live for their next paycheck are people who spend their monthly incomes because they have money elsewhere. To this group, since it is just the monthly salary they are spending, they are still safe financially.

This kind of thinking is the direct cause of the debts that several Singaporeans, young and employed, suffer with on a monthly basis. Saving money is difficult because of these debts. It doesn’t matter that you have an alternate revenue stream: saving money is crucial. Living from paycheck to paycheck and accruing debts on the way, even if it is just your monthly salary, is damaging to your finances.

If you still aren’t convinced, then consider these few points. They might be what will trigger you into saving more and spending wisely.

Anxiety Over Retaining Your Job

Living paycheck to paycheck has a requirement: that you earn a paycheck. This is something you may not think about often, till you realize that your expenditures pass your earnings. When your debts start to pile up, that is when your job seems more important than ever. This increases the pressure on you to maintain your job. The increased pressure is totally uncalled-for, and can only stress you out a lot and affect your performance on the job.

Becoming obsessed with holding down your job is not something that will help you at this point. Stressing yourself that much can only be bad for you, you could lose that job. Losing your job could be as a result of many things, such as not being a risk-taker, refusing to learn new things to maintain the status quo or a change in behaviour.

When your thought processes change from rising in your place of work to keeping things just the way they are, you are effectively hurting your job. Losing your job because you refuse to grow happens more often in the business world today. This is because having a passable skill set is simply not enough to retain any form of employment. Employers are more interested in people who can bring new ideas to the table, who can make contributions that lead to strategic growth and development. To bring forth these ideas, you usually need to think outside the box. Go outside your position in that company and envision what you can do to make the entire business better.

Because you live paycheck to paycheck, you become very anxious about your career security. This unhealthy focus can affect your work and your mindset, keeping you in that position for a long time – or getting you sacked from it.

No Emergency Funds

There is a shocking number of working Singaporeans who
a) don’t own emergency funds
b) have no idea about the importance of emergency funds.

Do you also fall into this category? Then this is for you. Going from one month to the next, continuously living from paycheck to paycheck, already indicates a lack of savings. At least you should have some funds set aside for emergencies, but those are absent as well.

Emergency funds exist to take care of all sudden monetary needs that are bound to crop up. An emergency fund is different from your savings since it has a different use: savings and emergency fund should be kept separately. No one wants to have to use up their savings for a sudden, impromptu event. You shouldn’t have to: that is what emergency funds are for.

An emergency fund is set up to pay for any sudden financial issues that may arise. This includes paying rent, a hospital bill, or paying the salaries of your staff when revenue hasn’t been steady.

There is no need to stress the importance of having an emergency fund. What you should worry about is living paycheck to paycheck, with no plans for the possibility of losing your savings in one swoop. Without an emergency fund, you will be in a lot of debt without much hope for bailing yourself out.

Lack of Discipline in Budgets for Saving and Spending

Any financial adviser worth their salt would tell you that, accounting for how much you plan to spend is just as important as making a budget for your savings. You need discipline to spend, just as you need the discipline to save. It is important to establish that discipline and pattern of budgeting your savings and expenditure early in life. It will be of great benefit to you when you go into retirement.

CPF (Central Provident Fund) is paid out only when you retire. Why isn’t it paid out every month? Observing the expenditures of the average Singaporean answers that question. If you were to receive your CPF on a monthly basis, there is every possibility that you will spend it all before retirement kicks in. What will you do then? It is alright if you are concerned that you aren’t in control of your expenditure; you are on the right track. It is better to realize that you need discipline, and then take steps to work on it than to simply ignore it.

If you really want to be financially secure during retirement, there is insurance that you can get for that purpose. These insurance plans arrange payouts for you per month when you retire, a structure that supports your pension. Some plans are structured in the way that you have a constant payout stream for the rest of your life. These payouts will remain so for a partner or entitled family member in the event of your death. You can get insurance coverage with these types of insurance plans, and make sure that your expenditure is restrained in your retirement years.

Living from paycheck to paycheck can rob you of a stress-free life. It is important that you start to take steps today to maintain a healthy spending habit, have some savings for retirement, and set up an emergency fund.

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    How Long Does It Take Before Your Credit Score Looks Good Again?

    Singapore has a high standard of living. It is not unusual for you to go to some financial institution to get a loan. You may need a loan for several reasons, such as taking a vacation, buying a house or car, or paying for tuition.

    For you to get that loan, from banks or moneylending companies, your credit score has to be sound. Some people don’t pay attention to their credit score till they apply for a loan. Knowing your credit score is important, just as maintaining a good credit score is important.

    Then you get your credit report and your score looks horrible. This is because all your repayments are late, and you never pay off your due balances in full. You need to get a loan, but your credit score says ‘that’s impossible’. You are at your wits’ end, fretting over how you can make your credit score look decent once more. If this is you, read on.

    Credit Score – What Is It?

    A credit score is a group of numbers, or just a number, that financial institutions such as banks use to prove that you can repay a loan, or you are most likely to default on loan repayments. For instance, the Credit Bureau Singapore (CBS) uses four-digit numbers to grade, or score, your loan history. This score, called the CBS Credit Score, goes from 1000 to 2000. If your credit report has a score of 1000, it shows that there is a high probability that you will be late on your loan repayments, or even avoid paying them. If your score 2000, it is certain that you will repay your loan, and on time too.

    You should note that CBS does not make the decision for banks to give you a loan or note. They just provide your credit information upon request. Note too that other factors affect your eligibility for a loan, such as your income, number of credit facilities you have used, length of unemployment or employment, and so on.

    Credit Score – How does it Affect Me?

    Your credit score has an enormous effect on your ability to obtain a loan. If you are aiming to get a new car or buy a piece of property, you will have to apply for a loan. This would be a car loan or a mortgage. Once the banks see your poor credit report, none of them will approve your loan request. There go the house and that sweet car.

    A poor credit report doesn’t affect just car loans and mortgage. Any type of loan, such as a payday loan, and educational loan, or a loan for a new credit card, will be denied you with that bad credit score.

    How Do You Fix A Bad Credit Score?

    If your credit score is bad (which is why you are reading this), do not lose hope. You can redeem your bad credit score, although this may take you some months to accomplish. For instance, Credit Bureau Singapore will consider your credit score clean and healthy once they can provide evidence that you have repaid loans and balances on time for 12 months.

    Therefore, you can wipe out your terrible credit past by changing your repayment attitude. In the past, you were repaying very late, not completing balances due, and constantly paying below the minimum amount. Now, you are making all monthly repayments on your loans and credit cards on time, always paying above the minimum amount. Do this for 12 months, and you will effectively clear your poor credit history.

    There are other things that you can do to keep your credit score in good light, such as:

    Reducing the number of credit cards you apply for. Credit cards can lull you into spending too much: try to use cash more often.

    Stop all activity on credit cards you aren’t using.

    Always make your payments on time. Relating to credit cards, your credit card bills need to be paid on time and in full. Even if you can’t make the minimum payments, the time you pay back every month should stay the same.

    Applying for numerous loans in very brief intervals is a no-no. Avoid this at all costs.

    Credit Score – The Unfixable

    Unfortunately, there are issues on your credit report that can’t be fixed. These problems go past the stage of late loan repayment and advance into the areas of bankruptcy and payment defaults. Irrespective of how healthy your credit report looks, once you have entered those stages, they will always appear on your report. Regardless of how much time has passed since then.

    While your redeemed repayments and what-not are reflected in a section called ‘Account Status History’, the issues of bankruptcy and defaulted payments are shown in a section titled ‘Summary’, which is at the top of the report. Specifics of the current state of those problems, such if they are in progress or discharged or outstanding, can be seen as you go on reading the report.

    What Else Do Banks Don’t Want To See?

    When you pay off your loans or bills, there are certain codes that you get. You can visit the website of the Credit Bureau to get more, in-depth knowledge of what the codes mean. The codes are denoted by letters, each with a different meaning.

    However, some of those codes can damage your credit score. These include:

    • H –This shows that your account had to be closed (involuntary closure), and it was done so while there was an outstanding balance
    • R/S – either one of these codes means that your bank has closed your credit facility or your account. Also, it shows that there has been a restructured outstanding on that account
    • W – This code stays on your credit report for life. It shows that you have defaulted on your payments, and it is the most damaging code for your loan application.

    While it may take you at least 12 months to clean your credit history, there are problems like defaults that can still affect your credit score. Nevertheless, there are some moneylending companies that can give you a loan, once there is proof that you are good for it.

     

     

     

     

     

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      Personal Loan Myths: Why You Shouldn’t Believe Them

      When you are need of easy and fast cash, yet you have a certain misconception about the personal loans available in Singapore being offered by a licensed moneylender, then this guide will help clear things up for you.

      Licensed moneylenders in Singapore offer personal loans and are often the last resort that customers in need of fast cash turn to. Many borrowers do not make use of this credit option available to them and thus prefer to cash advance withdrawals available using the credit cards.

      By having access to this type of an instant cash loan, you are able to fund any emergency need in the ranging from S$500 to S$100k. The repayment schedule agreed upon on the loan contract is often very flexible and you will be expected to pay a low personal loan interest percentage rate each month.

      In case you are still reluctant to take such a personal loan credit, read on to identify whether your reluctance and unwillingness may be attributed to one of the below listed common myths regarding personal loans applications in Singapore.

      Myth 1- The Application Process Is Complex

      This myth is far removed from the truth. The loan application process in Singapore is easy and can be done online from a licensed moneylender. What you will be required to present to the licensed moneylender is the correct and necessary documents and later all the proofs in person at their bank offices. This will enable the loan approval and processing of your loan application be done in a fast manner. Once your loan has been approved, you will then be able to access your loan amount in a little less than an hour from your bank account.

      The online loan application process is simple and easy to understand and takes a short time to fill out the online application form. Thereafter you will attach the documents required then you will be required to present the original documents in the legally approved moneylender’s offices for verification.

      Myth 2 – Singaporean Personal Loans Are For Salaried People Only

      If you are self-employed, a professional or a contract worker, the personal loan is equally intended for you. You can access this loan type being offered by licensed Singaporean moneylenders.

      What you will be required to present to the licensed moneylender of your choice, is the relevant business details and employment details, a recent bank statement, valid Singaporean pass details and proof of residency and any other vital documentation the moneylender may require.

      Personal loans are accessible to all people provided they present the money lender with business details, a Singaporean identity card, proof of address and any other documentation the licensed money lender may require from you.

      Myth 3 – Purchases Made Using A Credit Card Are Cheap In Singapore

      Your credit card will provide you with a higher credit limit, but the charges on interest are a lot higher on the repayment amounts. When you borrow from a licensed moneylender in Singapore, you will get to enjoy lower interest rates.

      The new licensed moneylender rules stipulate that you will only be charged rates not exceeding a 4% monthly interest rate. Make sure you take time to compare the rates of repayments being offered on your credit cards with those of a Singaporean legally approved money lender. This will help you settle for a loan plan that best suits and addresses your needs as well as one that will not cause you any financial strain during the time of repayment.

      Myth 4 – Personal Loans Require You To Have A Form Of Security

      Whereas banks will insist on you having a form of security to act as collateral for a loan of larger amounts taken, a private licensed money lender in Singapore will extend a loan to you without asking for security.

      This makes the approval of the personal loan much faster as long as you can prove you hold a sustainable source of income to help come up with the monthly repayment amount. Your being able to prove that you are able to make monthly repayments to help reimburse the loan amount taken will determine its approval.

      Myth 5 – Existing Loans Debt Affect Your Eligibility For A Personal Loan

      In case you are afraid of your loan application being rejected because of an existing home loan debt, licensed and approved money lenders in Singapore will not throw away your loan application because of an existing loan debt.

      Singaporean legally approved money lenders will then go ahead and offer you a smaller loan amount even when you owe a large loan debt. Your credit score and history does not affect your loan application approval in any way. Licensed moneylenders are there to help you have access to quick cash to help meet your emergency and financial commitments.

      Myth 6 – A Borrower Needs Good Credit Scores To Qualify

      In Singapore, credit scores and records are especially important for banks. On the other hand, a lower credit score will not stop you from accessing a personal loan from Singaporean licensed moneylenders. The legally approved Singaporean moneylenders are less likely to reject your loan application because of a low credit score unless you hold a history of defaulting on your payments.

      Myth #7 – Focus On Interest Rates Offered

      It is important for you to check the interest rates being offered on the loan you have applied for; it, however, should not be the determining factor. The personal loan comes with many other charges which include administration fees, interests on missed repayments and charges on late of payment of monthly fees.

      Ensure you read through the charges on the personal loans you intend to take and ask the loan officer of the institution for clarification should you have any questions. This is to ensure you fully understand the terms and conditions of the loan you are about to take. Ensure you confirm whether there are early repayment charges as some licensed moneylender even charge penalties for any early settlement since they lose interest in the income.

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        3 Ways To Get Emergency Cash In Singapore

        An emergency can happen at any time. When such a need arises you will, of course, need to remain calm and focus on finding a way of getting funds for your urgent financial obligation. This will put in a position to better weigh your options and choose the right solution for your financial challenge. Among your options, choose one that is easily accessible and feels safe for you. 

        The Singaporean Instant Cash loan

        A registered moneylender would be the option for you to apply for a personal loan when you are in urgent need of fast cash. This is because loan processing is a lot faster than personal loans offered by banks. In Singapore, a loan company often offers short-term loans that can be repaid, either on a weekly basis or every month based on the repayment mode that is convenient for you.

        In order for you to have an idea of the amount of money you can have access to, a loan calculator will come in handy to help you work out the number of months you will need to clear the loan taken and the interest rate charged.

        You will also be able to work with moneylenders who process personal loans online. This application process is a lot faster and can take 30 minutes to 1 day to approve and disburse the loan amount to your bank account.

        Limitations:

        When taking this type of a loan, be careful to apply from a registered moneylender by confirming with the Moneylender’s Registry held in the Singaporean Ministry of Law official website.

        Although moneylenders offer assistance when you are in need of fast cash, some loan sharks pretend to offer you financial help but only end up sucking on your finances. Ensure you are able to spot loans sharks to help you avoid being a victim of their scam.

         

        Credit Card Cash Advance

        This type of loan is easy for you to access as long as you have a credit card. What you will need is to key in a one-time PIN. This you can do from any of the affiliated ATM within the island to access cash. The withdrawn money is charged directly to your credit limit. Ensure you withdraw cash within your cash advance limit, which is often lower than your credit card’s credit limit.

        Limitations

        The cash advance is only available to credit card holders whose credit standing is good. It means you need to be able to pay the monthly bills on your credit card on time.

        Credit card advances are short-term loans issued by banks. Therefore, expect high-interests charges for you applied from the moment you withdraw the cash. Credit card advance interests often range from 28-29.9% each year.

        The interest charged on a cash advance is compounding. Meaning, it is charged to the existing balance and not the principal amount already withdrawn. The longer the credit card cash advance remains unpaid, the higher the amount you will be required to repay. This can later affect your credit score as well.

         

        Line Of Credit Or Credit Line

        The line of credit is a cash pool that is readily available for an individual in need of quick cash. Like the credit card advance, you will be required to go to an ATM machine and withdraw the cash amount you want. This cash can be used anytime you require some fast cash and for any financial commitment and obligations, you may have.

        How it works

        You will be required to visit your bank and apply for a line of credit also known as a credit line. Your bank will then ask you to provide the necessary documentation for them to assess your creditworthiness. You will then be required to wait for several days to get your loan application approved.

        Limitations

        Although you may be able to have access to instant cash, you will be required to first make an application for the loan, and then stay for some days for it to be approved.

        Once approved, the bank will issue you with an ATM card. The card will enable you to access the loan amount on the line of credit account. You are able to have a loan of any amount without incurring a withdrawal fee. However, the loan amount attracts an annual fee whether you make use of the cash or not.

        In order to qualify, you will be required to be creditworthy for a bank to extend this service to you. This is because the banks are at a high risk averse where loans are concerned. Some banks will require you to offer them some form of collateral while others will give this loan type to any of the bank’s longtime customers.

        Conclusion

        Personal loans are your best choice when having access to fast cash is concerned. For emergency situations, credit card advance is a convenient way to go but the inability to repay the loan amount on time can put you in serious financial distress.

        The line of credit will require you to prove you are creditworthy as well as have an existing line of credit account for you to use it. Opening a line of credit account takes days while applying for a personal loan takes a few hours.

        When applying for emergency cash, ensure you familiarize yourself with the limitations and benefits of the options available to you. It is advisable to first shop around to ensure you get the best solutions possible despite the emergency and the pressure it comes with.

        Ensure you read through all terms and conditions of the loan type you apply for to avoid making mistakes. Even though you have an urgent need for cash, do not let the urgency of the situation lead to your financial downfall.

        Above all, it is always advisable for you to have an emergency funds account. Despite the fact that finding ways of borrowing cash can be helpful in raising the needed cash amount, having ready cash savings is certainly more helpful in any situation.

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          Applying For A Business Loan In Singapore

          Starting up a new business is a challenge and it will always require you to put some money into your company from some of your personal savings.

          You will also need to put in some amount of your own personal cash into the new business, even when you are well able to get some cash from your friends, family and from other investors.

          When joining and starting a new business venture, the capital contribution is, in general, a very necessary and important step. Potential creditors in Singapore will always want to be certain that you have some of your personal security mostly in the form of some personal cash injected as a stake in the new business. The money used as capital whether it’s a loan or a bonus from your company or as an investment has tax implications and impact in each of these circumstances.

          Structuring Financing Options For Your Company

          In Singapore when you need to lend-out some money to your own business or company, you will be required to have a lawyer draw up some paperwork for you defining the status of the outstanding loans you may have, the repayment plan agreed upon together with the consequences of non-repayments of the existing loan. It is supposed to be clearly stated that the existing loan is a commitment and that it is binding on the part of your business venture.

          For the purposes of taxation in Singapore, a loan from your company or business and a loan from you is an “arm’s length” business deal, which will already be treated as another debt. The interest incurred on the debt accrued is equally taxable to you as an individual and can and should be deducted from the company individually as your income.

          The principal loan amount applied for cannot be deducted to the business apart from when it makes use of the funds available to acquire more capital assets. In Singapore, the capital assets meet the basic requirements for getting depreciation deductions. The return of the principal amount of the loan applied for cannot be taxed because the loan amount was issued after tax has been applied to the amount of money taken.

          Investing In Your Business

          In Singapore, putting some money in your business is the other option to investing the money. Therefore, there no taxation to you should you receive your contributions. When you withdraw additional money in the form of dividends, bonuses or draw, the amounts are subject to taxation. In Singapore, there are no tax implications to the company on the investment made, except when is for the purchase of depreciable assets.

          10 Factors You Should Consider When Making A Contribution To Your Business Or Company.

          1. Ensure you consider the labels on the paperwork you use. In Singapore, the document stated needs to show whether it is financing document or investment documentation.
          2. Ensure you consider the source of the loan payment. You should define whether the loan payment put on a loan is realized as a kind of dividend or as a payment.
          3. You should also consider the right of the identified lender in applying for a payment from the business or company. This needs to be written in the loan documentation. In Singapore, such language and information will not often show up in a share of stocks document.
          4. Take into account the lender’s right to get involved in the business management process. In Singapore stockholders usually tend not to take part as a prerequisite for acquiring shares in the management of a business or a company.
          5. You will also need to consider the maturity date of the loan applied for. The clear and precise indication of a given maturity date implies an existing loan.
          6. Ensure you carefully consider the lender’s right to amass assets alongside the usual business lenders. This information and language are concerning the collection and bankruptcy policies of the company and it will need to be made available in the company files.
          7. It is good to be clear on the involved parties’ intent. The existence of documentation needs to clearly state and show such intent and it will be helpful with this particular component of a business venture.
          8. The satisfactoriness of a borrower’s and of the company’s source of capital. Simply put, the principal sum applied for as a loan needed ought to be equally reasonable.
          9. Ensure you take into consideration whether the stockholder’s loan amount to the business venture is a proportion to the equitable ownership in the company they are involved in.
          10. It is also important to take into account the borrowers and the businesses’ ability to get and receive loans approved from other lenders.

          Despite the consequences of a loan to a business or an individual, it is necessary for you to allocate and indicate whether your contributions are as a capital investment or a loan and attach the required paperwork to support such a claim. This will help in clarifying the tax impacts and implications of the business transactions made and also prevent any potential problems with the Singaporean revenue authority.

          Where You Can Get A Business Loan

          There are plenty of places you can get a business loan for your company, depending on the loan amount as well as your company’s financial situations. For a large loan amount with longer repayment period, banks come naturally to mind while for a quick cash flow fixer, you can approach moneylenders as they are less stringent when it comes to approval process and time taken to approve your loan.

          The Comparison Between The Threats Involved

          Each of the selections has a risk implication attached to it. When the company or business is declared bankrupt and should you also have lent the said business some money, you then automatically become a lender. This means that you might or might not be able to get your loan money back from its liquidation depending on whether the loan given was unsecured or secured.

          In case the company declares bankruptcy, the flip side would be the business owner’s investments are totally at risk. In this threat scenario, there is little or no possibility of recovering the funds you have personally invested in the business venture.

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            How To Find Reliable Money Lenders In Singapore

            Finding reliable money lender in Singapore has been causing for worry because most of them turn out to be loan sharks and fraudsters. Unsuspecting customers will be charged high fees and interest rates on late loan repayments, or they will point out something minute in the contract and capitalize on it, to the detriment of the unsuspecting customer.

            Due to illegal money lender activity, the Ministry of Law took charge and cracked down on money lenders, enforcing rules and regulations that monitored their activities and greatly reduced fraud. The Ministry created a set of guidelines in 2015 that required money lenders to be licensed and verified and capped the amount of interest customers had to pay in loans. Still, customers may not be aware of these guidelines, so it will do you good to visit the website of the Ministry of Law and check out the list of licensed money lenders and the guidelines that protect you from fraud.

            Do Your Homework And Research For A Trusted Money Lender

            Finding a trusted money lender in Singapore may be difficult, but it isn’t impossible. When researching for a trusted money lender that you can do business with, first of all, you need to search for one by looking at directories of money lenders and financial companies that have obtained their licenses.

            Any money lender without a license, or listed as having a license, is most likely a fraud. Finding out if they have licenses by looking at the directory is the first thing to do. Searching online could also get you names of trusted money lenders, though after your search you should look them up in the directory of licensed money lenders. You can search financial groups on the internet for names of money lenders, or go to financial management groups that have a list of money lenders based on their previous track record.

            When selecting a money lender, be conscious to look out for the following things:

            • They should be strictly licensed money lenders
            • Do they provide insurance facility
            • What is their previous record of a financial institution, etc.

            There is a guideline for customers who want to borrow money from money lenders on the website of the Ministry of Law. Check those guidelines when looking for a money lender, and compare those guidelines to what the money lenders you have found are offering. If the interest rates are different, then they are frauds.

            Look For A Licensed Moneylender In The Government Directory (The Moneylenders Act, Chapter 188)

            There is a list of licensed money lenders in Singapore, certified by the Ministry of Law. Any money lender that is not listed in the directory is not a certified one and, therefore, is not legitimate. Alternatively, our website provides you with the most reliable money lenders in the market so you can rest your mind.

            Steps To Verify A Reliable Money Lender

            There are steps that you can follow to verify a reliable money lender. Following these steps ensures that you stay out of harm’s way by avoiding anyone out to get you into a financial crisis.

            • Verify Their License

            As said earlier, there are 170 certified money lenders registered with the Ministry of Law. This list can be found on the Ministry’s website, and the list is approved by the Ministry. Getting a loan from a money lender excluded from this list is completely at your own risk.

            • Process Of Loan Application

            A legitimate money lender should be transparent about their activities and their process. The conditions of the loan you are about to take need to be expressly explained to you before you sign off on it: this is mandated by law. The conditions need to be explained to you in a language you understand, and you are required to have a copy of the loan agreement with you, including the settlement agreement, interest rates, and other loan fees clearly stated in the agreement.

            • Loan Limits

            Money lenders offer two types of loans: secured, which require collateral; and unsecured, which use your credit records. Unsecured loans have limits, such as:

            • With an annual income of less than S$20,000, you can borrow up to S$3000
            • With an annual income of less than S$30,000, but more than S$20,000, you can borrow up to two months’ salary
            • For an annual income that is more than S$30,000 but less than S$120,000, you can borrow up to four months’ salary
            • You can borrow any amount if your income is more than S$120,000

              Rates Of Interest

            Legitimate money lenders are required by law to charge a maximum of 4% interest per month. The money lender is allowed to charge an interest fee on a defaulted payment, but not on money that has already been repaid.

            • Statement Of Accounts

            Once you have acquired your loan, you are to make sure that the moneylender gives you the correct amount agreed upon. Remember that you signed a contract with the moneylender, so the money stated in the contract is what you should be given. Whenever you make a payment on your loan repayments, make sure that the money lender gives you a receipt that shows the date, the amount you have paid, your name, and a signature. Also, you are to get a statement of account in the middle of every year and ensure to keep all these documents with you in a safe place in case you need to refer to them or present them in the future.

            Conclusion

            While money lending may be a legal activity in Singapore, it is also a highly abused activity, with money lenders defrauding unsuspecting customers and leaving them high and dry. Before you get a loan from a moneylender, make sure you check that they are a trusted source of loans by looking them up in the government directory of certified moneylenders.

            Their process of setting up the agreement and informing you about the loan conditions need to be transparent, and you need to be given a copy of the agreement to hold. All moneylenders are required to charge a flat interest rate of 4% per month, and the interest charged for late payments is charged to the late payments. Make sure you get a receipt for every payment you make and keep your records straight in case you need to present them.

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              How A Bridging Loan Can Save Your Frustration When You Sell Your House

              Bridging loans are loans that serve a purpose when you are in a particularly tight spot, and you don’t have money at hand, and the loan you have applied for hasn’t been approved yet. A bridging loan is a short term loan that ‘bridges’ the gap between the sale of a property, or a debt that you are to repay, or the gap between a property transaction and the approval of a loan you have applied for.

              Since this is not a typical type of loan, a bridging loan is very expensive, because it is a short-term option that you take when you are in very dire straits.

              Who Needs A Bridging Loan?

              Bridging loans are necessary for you if you are in a situation where you have to pay out huge sums of money while waiting for certain funds, such as a loan, to be available. Bridging loans are available for people in dire need of money to pay for things like mortgage, to complete a property sale or something that requires a lot of money. People who plan to bid on items at auctions also fall into this category, as well as landlords and novices at property development.

              What Can A Bridging Loan Help With?

              Bridging loans can help you out with certain things that may be frustrating you, such as:

              • Bridging loans can help you when you want to complete the payment on a new house but haven’t finished settling your financial commitments on the house you are currently in. In this instance, a bridging loan will provide you with the funds you need to clear the payments on the existing house and pay for your new house; or you can pay for your new house even as the payments for the existing house haven’t been cleared.
              • Bridging loans can come in handy in the case where you have just finished renovating your house and you want to sell it immediately.
              • A bridging loan can help when you want to buy a house at a house auction.

              The essence of a bridging loan is that it is a short-term financial solution to your immediate financial problem, but this loan comes with a very high-interest rate.

              When Are Bridging Loans Most Useful?

              Bridging loans are most useful when used for investing in property when used for development purposes, when to buy property, or when to give property for rent. However, some people take out bridging loans for the simple reason that the personal loan they have applied for is taking too long to be approved. So, it could be said that bridging loans are useful as shortcut ways to get a loan faster.

              Bridging loans, as said earlier, are short-term loans, but people seem to go for them more and more, mostly without knowing the full implications of taking those loans.

              As such, bridging lenders are increasing because banks and building societies are hesitant to give bridging loans to customers during a financial crisis: the inadequacy of funds to pay for your new house.

              Bridging loans attract high-interest rates, a hefty administration fee, and the likelihood being swindled depending on where you get the loan from.

              Before getting a bridging loan, carefully assess your needs and what you want to get the loan for, and how much you earn and can afford to pay back monthly. Bridging loan payments can be as high as 18% per annum; so looking at a second or third option is advisable before settling for a bridging loan.

              Where Can You Apply For A Bridging Loan?

              Getting places to obtain a bridging loan is not difficult. Banks, moneylenders, and other financial institutions offer bridging loans, as well as individuals. However, it is important that you get a loan from a certified, licensed, regulated, and legal financial institution. Banks offering this loan in Singapore include Standard Chartered Bank Singapore, DBS Bank, and OCBC amongst others.

              Moneylenders also offer bridging loans to you if you need them, and you can look up legal, licensed moneylenders to find out where you can go to borrow money. Moneylenders have a bad reputation for being dupes and scammers, but with the regulatory board in place for moneylenders, you can be sure to find out which moneylenders are scammers and which are legitimate.

              There are currently 170 moneylenders registered with the Ministry Of Law, and you can check their website to see the list of registered moneylenders in Singapore. To verify their licenses, you can also look them up on the website of the Ministry of Law.

              Moneylenders offer two types of loans: secured loans and unsecured loans. A secured loan is one that you need collateral to be able to obtain, and the amount is you can borrow with a secured loan is virtually limitless. An unsecured loan can be obtained with a look at your credit report and your ability to repay your loans. The amount you can borrow depends on your annual income.

              Obtaining bridging loans from moneylenders is very possible, as long as you verify the moneylenders.

              Conclusion

              Obtaining bridging loans in Singapore is an increasingly common occurrence because living in Singapore without getting a loan means you are among the few earning up to S$120,000 annually. Bridging loans come in handy when you need to sell your house, buy a new house, develop a property, or let property, i.e. rent.

              While bridging loans may be the perfect solution to obtaining huge amounts of funds in a pinch, the interest rates are high, and you may not be eligible to get other loans once the lenders see that you are repaying a bridging loan. Bridging loans are short-term loans, which means you have to pay them back within a short period of time.

              Before you take out a bridging loan, make sure you assess your income and your budget before taking that step. Also, it would be wise to consider other options before settling on a bridging loan.

               

               

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                Welcome to Singapore: How An Expat Start His New Life Without Financial Worry

                Like in other highly developed cities of the world, life in Singapore can be expensive for a foreigner. Life in a city that bleeds you dry financially, can be difficult especially for an expat or foreigner with no kin currently in Singapore. This is even worse for foreign workers who are unable to come up with money to meet expected or emergencies. Singapore is the most well-liked work destination in the world. The growing economy, high living standards, political stability and the perfect investment atmosphere are the factors that contribute to the constant in flow of expats coming into Singapore. Most of the foreigners stay longer after experiencing the elevated quality of life on this island.

                The high cost of living can potentially cause problems for expats who have a limited budget. As a foreigner working in Singapore accessing a foreigner loan from banks and other institutions can especially be very difficult. This is because the requirements are severe and being a foreigner, the loan application approval is very thorough. The loan application process takes a rather long time and the interest rates are equally too high because most of the foreigners do not possess any assets in Singapore to act as collateral. The assistance of the foreigner loan can help you as a foreigner; raise the amount of money you need to meet your expenses.

                The Financial Burden

                1. Deposit for rental of your apartment. When you are new in a country away from friends and family, you will require having sufficient funds to cater for your needs. To have a roof over your head, money for rental purposes is needed.
                2. Traveling around in Singapore to explore the new house, new school for your children. Before settling in Singapore, you will need to look around for a new house and a suitable school for your children. Money here becomes a factor as to the kind of house and school you can get.
                3. Deposit for school admission and school fees. Once you have found a school for your children, admission and school fees is to be paid to secure your children’s education.
                4. Having a house will require you to furnish it to make it comfortable for your family. In addition, you will have daily necessities to prepare for in a new country.
                5. Buying of a car. A car becomes an essential part of your stay as it makes you mobile in exploring Singapore and getting to work.

                Difficulty In Obtaining A Loan

                In order for you to have access to the loan facilities in Singapore, the lack of assets and proven work records makes it rather difficult for foreigners. A bank requires a long time to approve loans to a foreign worker since the application process and authorization are rather rigorous. Further to this, the percentage rates on foreigner loans from the banks are higher than the standard rates. The high-interest rates are attributed to the fact that many foreigners do not have assets in Singapore to be taken as collateral. Such a loan poses a big risk for banks than loans to local borrowers.

                This for most foreigners is not a major concern considering they require the funds, and that they are able to pay back the loan by the next income. It is about being able to reimburse your loans within the contracted time limit. 

                Approach Moneylenders For Foreigner Loan

                Make sure you apply for a foreigner loan from an accredited institution. Here you will be required to fill an application form available online attach your required documentations and then wait for a loan officer to contact you to set up a meeting at the bank offices. The bank representative will normally contact you within a day. You will be required to present your documentations for the verification and application processing of your loan. A valid work permit, proof of residence and a valid passport are some of the required documents you will need to present to the bank. Below is a list of the documents you will need to present for your loan application.

                Needed Requirements For Foreigner Loan Approval

                • You need to be between 21 and 55 years old.
                • You require having a valid work permit
                • Make sure you have a valid Passport
                • Make sure you have employment letter as proof of full employment
                • Proof of residence. You can submit a bill with your address printed.
                • Original and copies of current payslips for the past three months
                • You need to have a current Bank statement

                Speedy Approval And Friendly Consultation

                Foreigner loan application is easy to do, as you are required to fill an online form of application attaching the requested for documents then wait for the bank representatives to contact you. Once your documents and details have been verified, you will need to sign a loan agreement and the loan will be approved and funds disbursed immediately to your account. This way you will be empowered to meet your financial needs with ease.

                Conclusion

                Life in Singapore is rather expensive and for a foreigner working here, it can be even more difficult when they are working on a limited budget. Even with the perfect conditions for a thriving economy and political stability, the foreigner numbers are constantly rising. For a foreigner, life away from home is a big challenge when you are short on money.

                Getting a loan from moneylenders is equally not easy for an expat since they hold no property and assets to use as collateral for their loans. Foreigner loans have very high-interest rates since banks are taking a big risk loaning money. As a foreigner living and working in Singapore, do make sure you apply for loans from certified moneylenders.

                Since Singapore government has stipulated regulations that they are to abide by when offering moneylending services to their customers. Also, make sure you read through the terms and conditions for the loan to ensure no hidden charges are charged in addition to the normal rates. Once you are ready to apply for a loan present all the required documentations and signed a loan agreement, your loan approval and processing will be fast and smooth.

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                  Should You Go To A Pawnshop Or A Legal Money Lender?

                  Pawnshops are rather prevalent in Singapore. You may be in need of some quick cash to attend to an emergency; banks won’t loan you money, credit cards debt are fairly expensive in the current economy. The slow economic growth of Singapore has had adverse effects on most people making it difficult to access loans from money lending institutions and other financial institutions. This makes it possible for licensed money lenders and pawnshops to operate and experience a rapid growth. This is because both money lenders and pawnshops do not require you to have assets for collateral as required by banks.

                  Pawnshops and certified money lending entities make it easy to access to quick cash. This works best for those who require small and urgent loans. Pawnshops and money lenders normally offer higher interest rates and money is available without the review of your credit records. This makes is easy, fast and convenient in the current slow economy. The instalments make it possible for easy repayments. Since the cash is available upfront, there is fast approval period taken and you get to handle your money emergency issues immediately.

                  What Is Licensed Money Lender

                  Money lenders are institutions that are approved by authorization agencies like Singapore’s Registrar of Moneylenders. Before the money lenders entities are issued with a license, they are required to take and pass a test. Moneylenders normally function under a number of restrictions such as the loan limit they can loan out, the amount of fee and the interest rates they are to charge. To a licensed moneylender institution, its reputation is very important.

                  These normally offer smaller loans compared to banks. They also make the loan amount obtainable much quicker than banks. This is possible when you have in the past have presented all your documentation and undergone the necessary background checks. Such a record allows you to obtain a loan within an hour from a certified money-lender. Moneylenders also charge higher percentage rates than banks, have simpler requirements for an authorization of a loan and tend to be more lenient when you hold a low credit rating.

                  What Is Pawn Shop

                  Pawnshops are fairly easy to work with. They offer loans that are secured using something valuable that you give in exchange for the loan. The valuable item- can be jewellery or an expensive watch- is retained by the pawnbroker until you have fully reimbursed the loan plus interest accrued.

                  Pawnshops are under the regulation of government agencies and compared to the past, they more respectable. In the past, walking into a pawnshop, people would assume and believe you to be a gambler, a drunkard or as someone with poor management of their finances. This perception has, however, changed and pawnshops are now acceptable as another option for people to get loans.

                  When you are uncertain of whether you can meet monthly instalments and whether you will have the money available for repayments, pawnshops are an ideal choice for you.

                  Difference Between A Pawn Shop And A Licensed Moneylender


                  Default Penalties

                  Certified money lenders have high-interest rates on all their loans. In case you miss a few times to meet repayments to a money lender, the amount of interest gets compounded on the money you owe. This means when you default on payment, you will end up paying a lot more than you had initially borrowed. And soon debt collectors will be making visits to you to recover the money owed.

                  When you make use of a pawnshop loan, and miss a repayment and are not able to pay back, the collateral you presented in exchange for the loan amount becomes the pawnbroker’s property. The pawnbroker can at his discretion sell off the item to recover the money you owe. The downside is that you will lose your precious item.

                  Interest Rates

                  The pawnshops charge very low-interest rates on loan amount borrowed. This rate is even lower than credit card companies charge. While certified money lenders charge a much higher percentage rate on the loan amount borrowed.

                  Repayment Plan

                  Money lenders have a structured repayment plan and a fixed instalment to be repaid monthly while pawnshops have flexible repayments; you get to pay when you have the money to make payments with no compounding amounts.

                  Credit History

                  Before getting a loan from money lenders they do a thorough credit history review to ensure you have a clean credit history, while pawnshops do not require looking at your credit history or do credit review.

                  Collateral

                  Pawnshops require you to present them with collateral which is a precious item that you own, while money lenders only need collateral depending on whether the loan you are taking is unsecured or secured loan.

                  Trouble-free Access To Money

                  Pawnshops offer an attractive alternative to going to money lenders. You do n not require to present proof of identity or income to get a loan, while money lender require you to hand in proof of identification and employment letter as part of the documentations they need you to submit.

                  Conclusion

                  The slow economic growth of Singapore has had adverse effects on most people. This has made it difficult for most people to access loans from money lending institutions and other financial institutions. The pawnshops and money lenders make it easy for you to access quick cash. This works best for those who require small and urgent loans.

                  Since the cash is available upfront, there is no approval period taken and you get to handle your money emergency issues immediately. There are various differences between money lenders and pawn shops like the repayments plan; pawn shops offer the lowest rates and their repayment plan is more flexible, while money lenders have structured repayment plan with set monthly instalments.

                  Money lenders charge high interests and when you miss a repayment, the amount compounds increasing the amount you had initially applied for. Pawnshops on the other hand, do not charge any penalties on any defaulted payments and the amount you owe does not compound. Pawnshops require you to present a precious item to act as collateral while money lenders only require collateral depending on whether the loan you are taking is unsecured or secured.

                   

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                    Payday Loan vs. Personal Loan: What Are The Differences?

                    Singapore is one of the most expensive cities in the world. The thriving economy, high standards of living, political stability and a perfect investment atmosphere are factors that contribute to the continuous growth in the high cost of living in Singapore. Life in Singapore is rather expensive for any individual who has a limited budget. Living in a city that bleeds you dry financially, can be complex and challenging for you if you have a low income to sustain your livelihood in Singapore. This is made worse by an individual who is not in a position to come up with money for unforeseeable emergencies.

                    Having access to a loan from banks can particularly be difficult if you do not have proof of your ability to reimburse the loan taken plus interest. This is so since the requirements are strict and the loan application process and approval is very systematic. The application process takes a long time since your credit history needs to be reviewed. There are many loan-types available from a different type of financial institutions in Singapore. These are meant to meet different needs for the borrower.

                    Today, we are discussing the differences between Payday Loan and Personal Loan offer by moneylenders.

                    What Is Payday Loan

                    The payday loan is an intended advance on your up coming take-home pay. For you to qualify, you need to be above 18 years old. You also need to hold a steady job and a bank account. Being self-employed does not make you eligible for the payday loan.

                    Payday moneylenders do not rely on your credit history, credit report or the absence of it to extend this service to you. Instead, a fee ranging between $10 and $30 is charged for every $100 borrowed. This makes the payday loan more costly than normal loans. The positive side they offer quick cash for individuals when they need it. Payday loans are mostly approved in 24 hours after the application has been submitted.

                    What Is Personal Loan

                    Personal loans work much like normal loans. During your application, you will be required to hand in your information concerning your income. The moneylender will then appraise your credit report to establish whether you qualify to receive the loan.

                    Since personal loans are mostly issued as unsecured loans, the approval of your application will mean you get a monthly repayment plan and an interest rate as stipulated in your application. Once your loan has been approved, the moneylender will determine the amount you need to be contributing monthly based on your existing earnings and debt.

                    Key Differences Between The Two Of Them

                    Who To Borrow Loan From

                    A government certified moneylender is the one entity that has both personal and payday loans. The other financial entities in the market only offer personal loans.

                    The Purpose And Repayment Period

                    Payday loans have a short-term repayment period of about 2 to 4 weeks. This type of loan is often for paying off bills and emergencies before getting your next take-home payday.

                    Personal loans run for a longer period of 4 weeks to a few years and are intended for big purchases, investments and for business requirements.

                    Who Qualifies For The Loan

                    A payday loan is easy to get because it depends on your status of employment as well as your income level.

                    The personal loan requires more strict checks. But it offers you the chance to borrow a larger amount of money, normally 2-4 times your earnings. This, however, varies from one financial institution to the other.

                    Loan Processing Period

                    The payday loan is processed much faster time owing to the effortless verification procedure of income and status of employment.

                    Personal loan, on the other hand, takes more than one day for processing before you get the money. This is so since the institution has to do thorough checks to ensure that your credit history is impeccable.

                    Loan Percentage Rates

                    Payday loan charges a higher interest rate compared to personal loans, thus the shorter settlement period. This is partially due to the nature of the loan and your eligibility.

                    Payday Loan Vs. Personal Loan: Which Is Best?

                    People who require quick cash or emergency funds that are to be reimbursed within a short time need to consider taking a payday loan. Even though this loan comes with higher percentage rates compared to those of a Personal loan. The payday loan has higher interest rate and the short repayment period, meaning that you pay less interest, as opposed to a personal loan that has lower interest rate and is to be reimbursed over a longer time.

                    However, when you intend to make a big ticket purchase, a Personal loan is a better option available to you. This type of loan is payable in instalments over an agreed upon period of the loan tenure. Additionally, these kinds of loan furthermore offer flexible reimbursement terms and you can choose either a monthly or a bi-weekly repayment plan.

                    Singapore is one of the expensive cities in the world. Singapore’s thriving economy, high standards of living, political stability and a perfect investment atmosphere are factors that have contributed to the continuous growth of the high cost of living on the island.

                    In order to sustain the high costs of living in Singapore, a borrower can access the various types of loans to be able to supplement their funds. Both payday loan and personal loan can contribute greatly to the meeting of your daily needs.

                    Payday loan is the easiest to obtain as with a confirmed employment status and a bank account, you can have your loan approved fast. This loan is usually repaid once you get your take-home pay.

                    Personal loans, on the other hand, allow you access to a larger amount of money that you can then pay in monthly instalments for a longer period of time. Each type of loan is best suited depending on the purpose of the loan; for fast cash to be repaid in shortest time a payday loan is the best choice while for a larger amount of money to be repaid over a longer time period and lower interest rate, the personal loan works best.

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