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 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 20 minutes. Other advantages include fuss-free application, approval rates are higher and there is no credit discrimination – meaning you need not worry if you have a bad credit score.
At GoldStar Credit, our loan process and application are much simpler and faster than most of the licensed money lenders in Singapore. Our systems are integrated with advanced technology where we can retrieve all the information needed for your loan approval with SingPass, eliminating the need for manual verification. This makes your loan process a lot faster.
However, a fast cash loan in Singapore usually comes with higher interest rates as the amount loaned is generally much smaller. A longer tenure means paying more interest, hence it might be wiser to prioritise paying them off as quickly as possible.
Here are 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 out on a spreadsheet enables you to have a better picture of how much you need to pay off. From there, you are able 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 moneylenders in Singapore offer various repayment plans. It is important that you know your financial capabilities to make the monthly payment. Some licensed money lenders offer lower payments initially, and will gradually increase as you are nearing the end of your personal loan tenure, or some may offer a fixed price every month. Choose an instalment plan that you can afford.
#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.
#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 transport money going down to the moneylender office to pay in person. Plus, automatic payments through your bank account improves your credit score too. However, if you signed up for automatic payments, ensure that you always have enough money in your bank account to debit.
#5 Keep track of your bills and spending
Carrying on from the above point, in order 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 shopping. 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 debts from using your credit cards, stop using them.
#6 Consider consolidating or refinancing fast cash loans
Refinancing or consolidating fast cash loans in Singapore means taking out a new loan to pay off an outstanding loan. Borrowers typically refinance to reduce their interest rates and lessen their 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.