People hate it when they get calls from telemarketers each trying to influence them into signing a loan from the bank. When a bank calls you reminding you of the money you owe is even worse compared to the telemarketing calls. And the worst to encounter is when people are offering you well-meant advice.
The advice is on how you need not spend money beyond your means. Then once you talk about how loan sharks keep banging on your door. They all go silent and then start avoiding you. Except for moving house and even changing your name, you can do something about saving your whole life from falling apart.
Below are things you can do when dealing with licensed money lender Singapore when you are not able to repay the money you owe them.
Contact your Bank And Request For Reduced Interest Rates
Most people in Singapore make the mistake of running away from their lenders. Especially when they are not able to repay the loan amount they owe to their moneylender. This is not always the best option since even when you run away into the foreign countries the law has a way of getting hold of you.
On the other hand, what most borrowers are not aware of is that moneylenders are always ready to make their life a lot easier. All they need to do is talk to their lenders about their situation. The lenders will do their best to work out a repayment plan that will ease your financial strain. This will, in turn, make it easier for you to manage your daily bills and be able to make monthly installments.
One thing borrowers need to realize is that getting lawyers to come after you cost more money. Therefore it is advisable to visit your lender and tell them of your financial situation regarding repayments. They will find you a lasting solution.
Loan providers are in a position to help you once you come out clean about your not being able to make monthly payments. They can give you an extension, help you come up with a new favorable repayment scheme and even reduce the interest charged on your loan. Once you do this, you will be able to stop the lenders from harassing you for some time.
Get Short Term Stints For More Money
When you are faced with financial challenges and are unable to make your monthly loan repayments, consider short-term jobs. Even when the banks are threatening to go all pig’s head on your property, you need to look for opportunities to help raise quick cash. This way you will be able to make some payment to hold them off for a short period. The short-term stints need to be something you can do after work and also on the weekends. This should be aimed at raising some urgent cash to help reduce your debts.
These are some of the part-time jobs available regularly on the Singaporean market:
You just need to search for a “roadshow” on Gumtree. You can also check out similar sites for many more part-time roadshow jobs. These jobs will be hiring immediately, and require no experience.
You can take the time to call up several tuition agents listed in the newspaper classifieds section. These jobs can become available to you between 1-2 weeks when you can start offering teaching sessions after work and even during the weekends.
Emergency Mode Spending
Living like a pauper can be depressing and it is not easy either. It can lead to you falling into an existential crisis type of situation. Here you will need to live more like a monk to save money. This will mean the use of public transport, no spending on entertainment and have to eat homemade meals without meat.
When you very much want to pay off your entire loan, you will need to understand that you are in an urgent situation. This means racking up extra savings such that you can pay off a month’s installment. This way you will be able to get the bank agents to ease up on their constant calls.
When your situation is desperate and you have tried some of the above-mentioned solutions. And you are not able to bail yourself out. You can consider seeking additional help from another source. When your family and friends have some extra and can lend to you, you can promise to clean their houses for a given period. This will be a good source to help you get the upcoming installments paid. Should your family not be in a position to assist, you can seek out help from licensed moneylenders. This is if your credit score is not all completely wrecked.
You can also opt for debt consolidation. This is when you get a single loan to repay all your other debt. This loan is often at a lower interest rate. For instance, if you have a loan with Bank A $8,000 and Bank B $ 12, 000. You can then apply for a $20,000 loan from Bank C to repay Bank A and B. Where financial institutions want you to think debt consolidation will solve your financial problems, in most cases you end up paying a lot more in interest.
Given that you hold high-interest credit card loans then you borrow personal loans for a loan period of 5 years. And get lower interest rates on the loan to repay your credit card debt off. Although you may pay less interest compared to your credit card debt for each month. In 5 years, it will cost you more overall. This is considering you may have repaid your credit card debt in less time. Loan consolidation may be a solution for you when you find yourself going under. It will help you rescue your self from a difficult financial situation.