There may be some point in life when you find yourself needing extra cash to pay off an unexpected expense. Fast cash loans in Singapore are increasingly becoming a popular alternative to bank loans for those who need to borrow money quickly.
Licensed money lenders in Singapore offer fast cash loans such as payday loans and personal loans and can be approved in as quickly as 30 minutes. Other advantages include fuss-free application, higher approval rates, and no credit discrimination – meaning your loan application can still be approved even if you have a bad credit score.
However, a fast cash loan in Singapore usually comes with higher interest rates as the amount loaned is generally smaller. A longer tenure means paying more interest, hence it might be wiser to prioritise paying them off as quickly as possible.
For those who need quick cash in Singapore, a fast cash loan may seem like a good solution. However, it’s important to remember that borrowing money comes with the responsibility of paying it back, and some people may end up facing difficulties paying off their loans.
If you find yourself struggling to make your loan payments, don’t panic. There are steps you can take to manage your debt and get back on track. Intrigued? Read on.
6 ways you can effectively pay off your fast cash loan in Singapore
1. Know what you owe
At times you might find yourself juggling to pay off different debts. The first step to paying off your debts effectively is knowing the whole amount of the debt owed plus interest rates. Review your outstanding credit card bills, unpaid personal loans, and even medical bills.
Detailing their due dates, minimum monthly repayment, and their interest rate on a spreadsheet enables you to have a better picture of how much you need to pay off. From there, it would be easier to establish a repayment plan that benefits you.
2. Pick a loan repayment plan that is suited to your ability to pay it off
When processing your fast cash loan, licensed money lenders in Singapore offer various repayment plans. You must know your financial capabilities to make the monthly payment. Only by understanding this will you know how to borrow money the smart and right way.
Some licensed money lenders offer personal loan tenures of up to 24 months while majority offer loan tenures of up to 12 months. Choose an instalment plan that you can afford while minimising the total interest on your loan.
3. Take advantage of cash windfalls
Cash windfalls such as bonuses, lottery wins, and even birthday money can contribute to paying off your payday loans. Setting aside some, or all of that extra cash for your loan repayment may offset the amount you will have to pay off your salary for the next month or so.
Should you decide to pay off a loan early, check your loan contract for any charges or fees for early repayment. Do note that lenders are only permitted to impose certain charges with a capped fee.
4. Schedule automatic payments
If your licensed moneylender in Singapore offers automatic payments like GIRO for the payday loan you are signing up for, take it! Scheduling automatic payments for your loan means your money is being debited from your account monthly without you having to lift a finger. It saves precious time and transportation costs since you can skip going to the moneylender’s office to pay in person.
However, if you’ve signed up for automatic payments, ensure that you always have enough money in your bank account to debit. Otherwise, you might end up having to pay an administrative charge for the failed GIRO deduction.
5. Keep track of your bills and spending
Carrying on from the above point, to pay off your fast cash loan in Singapore effectively, you need to be aware of how much you spend paying off your bills, and also when spending on other things in life.
You will need to budget your spending, and identify which components are important (e.g. phone bills, utilities), and which ones you can do without (e.g. streaming services, GrabFood delivery dinners). If you are raking in more debt from using your credit cards, stop using them. Learn to differentiate your needs and wants.
6. Consider consolidating or refinancing fast cash loans
Refinancing or consolidating fast cash loans in Singapore means taking out a new loan, such as a debt consolidation loan, to pay off outstanding loans. Borrowers typically refinance to reduce their interest rates and lessen their overall repayment amount.
Through the refinancing process, a borrower takes out a new personal loan with a lower interest rate to pay off their existing payday loan and the old loan terms are replaced by the new terms and conditions.
Bottom line
At GoldStar Credit, we offer various personal loans such as fast cash loans with competitive interest rates and flexible tenures. Our application process is fully integrated with SingPass, eliminating the need for manual, tedious documentation submission.
Contact us today to learn about our loan solutions and how we can help you meet your financial needs with our fast cash loans.
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