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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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    Best Personal Finance Tracking Apps In 2017 That Help You With Financial Problems

    Many people are not able to stay for an entire day without regularly checking their smartphones. Considering checking text messages, checking emails and chats has now become part of our daily routine. Smartphones are very smart that they enable us do shopping and pay the bills and yet be on the go. Smartphones can enable us to maintain a track of our finances as well.

    By use of downloadable apps, you are now able to create a budget that you can stick to and even making investments through your phone. There are numerous finance tracking apps available in the market that it is rather frustrating to find a suitable one for your needs.

    Why The Need For A Finance App?

    There are a large variety of financial challenges that people face in their everyday life. Financial challenges are hard to tackle since they involve the much-dreaded balancing of financial accounts. When your financial problems are not handled immediately, they could eventually lead to a major financial setback. You will to first identify the root cause of the problem you are facing and then work at finding a suitable solution to overcome it.

    You will need to recognize the things you often spend your paycheck money on and ways in which you can holistically make a move towards better money management practices. You will need to break off the habit of living from paycheck to paycheck or borrowing from legit sources like moneylenders. You will also need to establish ways of ensuring you have extra savings using the least effort possible.

    Some Of The Best Personal Finance Apps In 2017

    Wally: Best For Tracking Your Expenses

    Wally is a free personal finance app, which helps you recognize all the areas where your money goes, and ways in which you spend and when you do the spending. This app also allows you to save photos of your receipts for purposes of records.

    Your financial lives can sometimes be complex and not every one of us loves accounting. In using Wally, you will be able to easily to notice what happens to the money you bring in, what was saved, what you earn and what you need to adjust to your budget.

    The Wally App is very easy to use and it makes tracking your finances very simple as well as convenient for you. The time you spend some money, you will only need to take out your phone. The graphs generated will give you insight into areas in which you spend money on. In this manner, you can well understand your spending behaviours and ways you can save up more.

    Mint: To Help Manage Your Money

    The Mint application is the creation of the Intuit Inc. the company responsible for creating QuickBooks –accounting software used for smaller to medium-sized businesses and the Turbo Tax- American tax preparation software.

    Like the real mint gives you a fresh breath, the Mint App has a refreshing effect on your finances. This app is web-based and is a free financial tool used to tap into your credit cards, bank account, investments as well as other financial accounts you may have. With this App you do not need to log into different sites, you only require to open a Mint account.

    The Mint App gives you the visual of the areas you often spend your money in, how much money you have in the bank accounts, which of your accounts need additional funding and whether you will end up messing with your own budget. The Mint App makes it possible for you to handle your finances in ways that are beyond simple budgeting process.

    You Need A Budget (YNAB): To Help You Get Out Of Debt

    If you are tired of living in the endless cycle of paycheck to paycheck expenditure, then You Need A Budget (YNAB) will help you keep track of your finances. It will help you define your spending patterns, paying your debts, coming up with a workable budget and having some extra cash should you experience an unexpected financial bump.

    You Need A Budget pushes you to make a workable budget which differentiates it from other apps which require you to make a budget with money you may not have. And should you go off track, YNAB App will help you make necessary adjustments to your budget so that you don’t wreck the entire budget plan.

    The main purpose of this App is to have extra money for you to spend from the previous month’s earnings. This for you means you have broken free of the cyclic pattern of living paycheck to paycheck and you have some money to pay off debts and remain with some extra cash for your use.

    Despite the fact that users have to pay $50 annually, the support and services it offers are well worth it and it even comes with a money-back guarantee.

    Acorns: To Help You Make Extra Savings

    With the Acorns App, micro-investing becomes a natural way for you to earn more cash on the side making your spare change work for you. Each time you purchase using the card connected to the Acorns App, the app converts it to the next highest dollar. The distinction between the amount changed and the estimated cash amount is automatically invested in a portfolio of a low-cost exchange-traded-funds (ETFs) at the end of each year.

    Acorns app sends out a questionnaire to get to know your financial goals and situations and thereof the app makes recommendations which are a mix of ETFs that you can invest in. you are able to manually set up a one-time and even recurring investments. The app charges account having less than $5,000 a monthly fee of $1 while those accounts with more than $5,000 are charged 0.25% each month.

    The different apps can turn your smartphone into a financial companion driving you towards better money management practices. You can use apps for different financial reasons but they are effective depending on how you change your spending patterns.

    For you to reach your financial goals it will take time and discipline on your part, however, you will from time to time experience some financial gaps. Even then do not panic since you can access a personal loan from moneylenders in Singapore.

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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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        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.


        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.


          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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            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.


            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.


            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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                What You Need To Know Before You Get A Loan In Singapore

                A loan is a debt provided by a financial institution to an individual or an entity at an interest rate. A loan is often provided at an interest rate on the debt. Loan obligations are governed by contracts which enforce restrictions stipulated in the contracts. A loan is available for a specified period, one-time amount or as an open ended line of credit for a specific limit. Often the lender requires collateral to act as security in cases of defaulted payments.

                For an individual who needs quick cash, they have the option of turning to a family member or a trusted friend. Traditional financial entities have precise rules applicable when lending to individuals. Banks lend to individuals who have to proof of their ability to reimburse the loan amount. There are specified documentations that need to be submitted before your loan is approved and then processed.

                What Is The Purpose Of The Loan

                The reason leading you to take a loan determines the type of loan most suitable for your needs. When you are making plans to purchase a house, a home loan is suitable, if it’s starting a business a business loan is what you need. Every one type of loan has its positive and negatives that you need to be familiar with before making the final choice.

                Your Credit Score Matters

                Before contacting with a lending entity, you should get your credit in order. Consider whether your credit score high or on the low side. Make sure to pay off any impending credit and get a clean record for your credit report. An impressive repayment record for more than the past six months will increase your chances of getting your loan approved. This is important since most lending entities check your credit score ahead of granting a loan to you.

                Interest Rates Can Be Exceedingly High

                Make sure you check the lending institution’s terms of service. This will help you ensure the loan you apply for does not have any hidden charges. Be sure to keep away from loans with high-interest rates, these tend to cost you more over time. Take extra care when calculating the interest of the loan you intend to take. This will help you keep away from any interest going above 10% is really high, which for a normal loan is really high.

                Loans from moneylenders can be the most costly way to borrow. Singapore government rules allow moneylenders to charge the highest monthly rate of 4%, which translates to 48% annually. An upper limit of monthly 4% rate is charged for late remittance. An additional S$60 may be charged above the loan amount monthly contribution. A loan in Singapore can sometimes mean you are expected to pay a straight up fee as ten percent of the main amount. The total sum of the late fees, upfront costs and interest you need to pay could amount to the principal sum.

                What If You Can’t Repay Your Loan?

                Make sure to remit your contributions on time. When taking any loan, check, research and recheck on the penalties on late repayments, this way you would be sure to make timely contributions to avoid incurring the extra charges. As a marketing strategy, some banks do not highlight the penalty charges to their customers. This way they get to obtain more money from you.

                You are legally obligated to pay the loan monthly contributions on time. The money-lending companies and banks also have a right to require you to pay up. As a result, the banks or moneylenders would have their representatives pay you a visit till you pay the required amount; this is why during the loan application you were required to submit your address. Debt collectors are not allowed to result in violence or use inappropriate language to implement repayment. In the case of breach of your rights, borrowers need to report to Singapore’s Law Ministry.

                You Only Loan From Legal Moneylenders Or The Banks

                Make sure to check the money lending entity you choose has met the standards set by the Singapore government. There is a moneylender’s list available at the ministry of law’s registry.

                Avoid getting into any agreements with organizations that are not approved by law or even loan sharks.

                Certified moneylenders are under obligations to follow certain set rules. Licensed moneylender singapore are expected to do the following;

                • Legal moneylenders and banks are expected to break down all provisions of the loan’s conditions and terms
                • Moneylenders should submit a copy of contract note to the loan borrower.
                • Moneylenders need to carry out a detailed credit review before approving your loan request. They can do this by examining your pay slips and income tax review.
                • Moneylenders need to present you with the total amount of the loan taken. They are to give you the total amount without holding any amount back.

                A Singapore loan is a debt provided by a financial institution to an individual or an entity at an interest rate which is often accompanied by the interest rate on the principal amount of loan obligations are governed by contracts which enforce restrictions stipulated in the contracts. The reasons that you need to take out a loan determine the type of loan you will need. It is highly recommended that you do your research before approaching any financial institution for a loan.

                Before contacting any moneylender, make sure to get your credit score record in order and clean for more than six months. This will assist the banks or moneylenders to approve your loan application fast. In addition, prepare all the necessary documents to speed up the approval process as well.

                Take time to make a thorough search on the moneylender loans they provide to be sure there are no hidden costs. Familiarize yourself with any defaulting penalties, so you can avoid any late repayments and unnecessary additional costs due to late payments. When applying for loans, make sure to work with accredited financial institutions to save you future headaches and worries.


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                  Licensed Moneylenders Vs. Banks: What Are The Differences?

                  Here in Singapore, when you have a financial emergency, you have two main options to which you can turn to for a loan, and they are banks and private moneylenders. There are several banks in Singapore from which you can obtain a loan which include DBS, Standard Chartered, Citibank to mention just but a few. At the same time, there are many licensed moneylenders throughout the country.

                  Licensed moneylenders and banks work in completely different ways. Licenced money lender singapore are businessmen like any other entrepreneurs. However, in Singapore, for one to run a money business, they need to be licensed by the registrar of moneylenders. This license that they are given has restriction within which any licensed moneylender should operate within such as the amount of money that they can lend to you, a competitive interest rate and the service fees they can charge you among other restrictions.

                  Before you run to any of these businesses to take that loan, it is important for you to know the differences between a bank and a licensed moneylender.

                  Amount Of Money They Lend

                  In Singapore, the registrar of moneylenders regulates all moneylenders, which is a state department that determines the amount of money that the licensed moneylenders are allowed by the law to lend to local borrowers. It does not end there the regulation also limits the kind of service fees and the interest rates which a money lender can charge you when you go to him for a loan. The good thing about these regulations is that when you go to a licensed moneylender anywhere, you are protected by strict regulations.

                  In addition to the above restrictions, you can be sure that the amount of money that a licensed moneylender can loan you is smaller as compared to a bank. Hence if at the middle of the month you run out of cash to meet your daily needs, as you await your end month salary, you can approach a licensed moneylender for a loan to tide you over. However, if you are in need of a huge amount of money, then it goes without saying that the bank is your only option.

                  Transaction Speed They Approve

                  Depending on how soon you need money, a licensed moneylender might be the better option. This is because, at a licensed moneylender’s office, you can be able to get that fast loan within an hour or less of you visiting them. The required documents that a moneylender need are much lesser than a bank’s requirement but do prepare the required items before you approach a moneylender so as to speed the process of loan approval.

                  But on the other hand, if you go to the bank to get a loan, you will have to wait for a number of days or even weeks before your loan can be processed. The reason as to why banks take that lengthy period of time is the amount of paperwork that is involved in issuing a loan and the required checks to ensure your documents are in accordance with their strict requirements. This is a clear indication that the bank is not the best place to turn to if you have a pressing need of money to meet your emergency.

                  Credit Checks They Do

                  In Singapore, both banks and licensed moneylenders have the ability to handle credit checks from their clients. However, banks are always known to be stricter about the outcome. In a bank, you need to have a credible credit score combined with a low debt to credit ratio for you to qualify to be issued with a loan, especially if you need money for example to renovate your home. In addition to that, if you want to have the lowest interest rate on your loan, you must ensure that your credit score is above average when you are approaching a bank to take a loan.

                  If you are sure that your credit score is below average and you need a loan, you have the option of visiting a licensed moneylender near you. The good thing about moneylenders in Singapore is that they are lenient when it comes to debts and credit scores. It goes without saying that if the credit checks show that you have already taken a lot of loans from other moneylenders, your chances of being approved for a loan are minimal. This is due to the fact that moneylenders want to be sure that you are capable of paying back the loan within the agreed time.

                  Higher Interest Rates They Charge

                  In case you are not aware, licensed moneylenders can only reveal their interest rates to you when you visit them hence sometimes their rates are higher as compared to banks. In fact, in some of the moneylenders, their rates are so high that it would only be wise for you to use your credit card as compared to visiting a moneylender. If the middle of the month you need a few hundred dollars to push you to the end of the month, then it would be wiser to approach your bank to get approval to use your credit card than to turn to a moneylender.


                  In conclusion, therefore, as you might have realized till now, there are few differences between banks and licensed moneylenders. If you are not so sure whether the kind of loan that you need can be catered for by a moneylender, feel free to visit one near you and inquire or you can search online. Alternatively, a search with the government moneylender register will bring up a list of legalized moneylenders and their contacts.

                  So, between a moneylender and a bank, whom should you turn to for a loan today? This is dependent on the type of loan that you want. If you want a huge amount of money, the bank is the better option for you and if you are looking for a payday loan, then visit a legal moneylender.


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                    7 Qualities Of Trustworthy Singapore Licensed Moneylenders

                    In our society, today, finding access to financial assistance services for everyone in our society is an essential aspect of any sustained economic development. When you are in serious need of money, you might not be careful enough to consider who is lending you the money as long as you get the much needed financial assistance. You might need to borrow money either once or more in a year. But it is becoming a difficult task for you to identify a financial institution that provides this much-needed services when you most need them. This is due to the fact that not all moneylenders can be trusted. So, how can you find a trustworthy money lender in our country today?

                    Due to the stringent lending rules by most banks, licensed money lenders are the most reliable source of loans today. For you to get the best value out of a loan that you are taking from a moneylender and for a stress-free process, it is paramount for you to know how to get the right moneylender in Singapore.

                    As you might be aware, there are hundreds of licensed moneylenders in Singapore, which makes it hard to know who to turn to when you are in a financial quagmire. Hereunder, are seven qualities that a trustworthy moneylender should have.

                    Competitive Rates And Fees

                    As a borrower, you would expect that private moneylenders would have higher rates as compared to banks, but a good licensed moneylender should not charge you exorbitantly. The difference between the bank and a private lender should not be more than four points. A good moneylender will offer you other benefits that will make you want to go to him every time you need a loan. When a moneylender has cheaper rates, it means that you can get favourable terms on your loan amount. He should be able to understand your financial needs and give you the best help at a low-interest rate.

                    When you are looking for a moneylender, look for one who has reasonable rates. But this should not be the only quality that you should be on the lookout for.

                    Helps You To Understand The Terms Involved

                    A good and reliable licensed moneylender will under all circumstances strive to help you understand the conditions that are included in the contract for lending you money before you sign on the dotted line. Singapore government requires that all licensed moneylenders should do this for all his clients before loaning them the money that they need.
                    If you find a licensed moneylender, who is in haste to make you sign for the loan before he explains to you the conditions involved and ensuring that you understand them, you should walk away. Avoid a moneylender that wish to rush through documentations and do not bother going through the fine print of terms and conditions, otherwise, you might find yourself in unknown troubles.

                    Customized Services

                    We all do not have similar financial needs neither do we have the same financial strength hence a moneylender should not provide a blanket financial services for all of us. Since your financial needs are different from the other customer, it is your right that the moneylender that you approach should give you a custom made moneylending plan, which will suit you instead of him forcing you to take the one that he has pre-set.

                    The right moneylender will calculate your rates in front of you; presenting you different scenarios like the rate you will be charged if you miss a repayment deadline.

                    Good Service & Reviews

                    Ensure that the moneylender you choose to approach to help you with your financial difficulty must have a good service reputation in the Singaporean money lending market. It should not be difficult for you to find out about the service reputation of the moneylender through word of mouth. You can find out from your family and friends if they have any knowledge about the moneylender or seek research online for reviews from other customers.


                    Choose a moneylender that has enough capital. In Singapore, licensed moneylenders will not only be lending money to you; but also they are able of giving long-term loans, as long as up to seven years. So when you are looking for a licensed moneylender, find one who can be able to cover all your loan requirements and not transfer your loan to another company when it goes bankrupt.


                    Maybe this should be the number one quality of any moneylender in Singapore. Ensure that the moneylender you are approaching is properly registered with the relevant state department. You can find out whether the moneylender is duly licensed and endorsed by conducting an online search. MAS has an updated list of legalized moneylenders and their contacts.

                    Ensure that the moneylender is authorized to carry out the business because it will be easier for you to trace him.


                    A licensed moneylender should be transparent with you about all the details of borrowing money. A good and trustworthy licensed moneylender should have his information online so that anyone who is interested in taking a loan can be able to access all the relevant information during the origination process. In addition to that, you should be able to access the lender’s guidelines. If a licensed moneylender has “teaser” rates, you should ask him how you could be able to get those rates. A reputable moneylender should not have bait and switch tactics.

                    In conclusion, therefore, a trustworthy licensed moneylender in Singapore should not force you as a borrower to pay service fees in the event you are under pressing financial difficulty. As a matter of fact, he should be able to guide you to recover your financial troubles with the help of the Singapore government.

                    Before you settle on a licensed moneylender, consider all the qualities that are listed above from whom you can borrow that sum of money that you need. A good moneylender should follow all the steps that are stated in the law when granting any loans.


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