Unsettled loans can prove to be a burden to our financial health. In addition to the loans themselves, other financial obligations make it hard for you to settle the loans as fast as you can. This prolonged repayment method will rack up interest rates, and when things pile up, it’s easy to get swallowed up by your debts.
Trying to manage your finances during such a time will be tricky, but with proper financial handling and strategy, it is possible! Not only will you be able to get yourself out of debt, but you will have enough money left over for other areas in your life.
If you wish to learn more about how to better manage your finances to settle outstanding debts, read on.
1. Keep track of your monthly expenses
It is good practice for you to keep track of all the financial obligations that you have to attend to every month, such as your mortgage and utility bills, food and groceries expenses, and outstanding loans. By doing so, you’ll gain a clearer picture of where and how you divert your earnings. This will help you visualise how much you have left once you have taken care of your financial obligations.
2. Assess and evaluate these expenses
Once you have punched in the numbers, it is time to figure out if you will be able to settle your monthly due with your leftover earnings. Suppose you can pay them back; in this case, you probably won’t have much left to contribute to your savings. As such, go back to the list you’ve made of your monthly expenses and identify the expenses that you can either minimise or omit altogether.
If you are not able to pay your monthly dues, you may need to re-evaluate your expenses and make the difficult decision of prioritising certain expenses over another. This will help you to avoid the accumulation of interest that can easily rack up with prolonged repayment.
3. Pay more to save more
With most credit or loan agencies, discounts on interest rates are offered if you pay more than what is due. This may seem counterintuitive, but the more you pay off what you owe every month, the less your interest and the outstanding balance will be. In addition, this will naturally translate to bigger savings!
4. Combine multiple loans into one repayment term
When you’re trying to settle multiple loans at once, dealing with different payment due dates can be an overwhelming task. But this does not always have to be the case! There is a way to combine multiple debts into one, making the repayment process a smoother and more straightforward one, and that is via a debt consolidation loan!
Ensure you choose reputable debt consolidation companies in Singapore that take pride in offering avenues to help those who are in desperate need of financial assistance. At Goldstar Credit, our fast-approved loans, friendly interest rates and flexible repayment loans are designed to help you bid goodbye to multiple debt portfolios and look forward to getting your financial footing back.
Credit and loans are quick solutions to getting yourself out of a financial pickle. But if you’re not wise in handling your finances, they can easily become a problem. To avoid this, make it a habit to manage your income and expenses accordingly so that you can quickly settle your outstanding loans and save up at the same time.
But should you find yourself overwhelmed by the number of loans you have under your name, consider getting a debt consolidation loan from our licensed moneylender in Hougang to synthesise multiple debts into one monthly payment. Give us a call at +65 6384 0088 to learn more about how we can help you today!