From housing to medical bills to everyday expenses, the cost of living in Singapore is high, and it can be tough if you are facing financial emergencies or cash flow problems.
When you have bills to pay and you haven’t received your salary for the month yet, taking a payday loan potentially can save you from paying hefty late fees and penalties on your bills.
What is a payday loan?
Payday loans are unsecured, short-term loans that have relatively high interest rates. It acts almost like a salary advance and can be used to pay off expenditures like bills, rent, or emergency expenses that cannot be delayed.
The maximum you can borrow is up to your one month’s salary, and it can be approved very quickly within a day, with cash disbursed to you almost instantly. You will need to repay your loan in full, together with interest, when your next paycheck arrives.
Due to the small loan amount and the ease of repayment, it can sometimes be very tempting to take on more than one payday loan. But you need to be careful if you do – it can be stressful to manage multiple payday loans with different repayment schedules.
So what can you do?
Here are some tips on how to pay off multiple payday loans so you can clear your debt as soon as possible.
Tips to pay off multiple payday loans
1. Tabulate your payday loan repayment amounts and do your budgeting
Financial budgeting is extremely important in developing good loan repayment habits, especially if you have multiple payday loans to clear.
Tabulating your payday loan repayment amounts will ensure that you have an overview of how much money you owe in total, and when each loan repayment is due. This allows you to be able to plan for each repayment deadline so that you can pay off everything on time.
If you already have a few loans, it is also best to avoid taking on any more for the time being, as the additional financial burden would add to the stress. And if you can’t repay it on time, you will need to pay late interest and charges, which can add to your debt – money lenders can charge up to 4% of late interest per month for each month the loan is repaid late.
2. Increase your income
Another way to clear your debt more quickly would be to look for more sources of income, such as taking on freelance or part-time work, which could put you in a better financial position to pay off these loans.
3. Take a debt consolidation loan
Although in general it is not recommended to take on more loans to repay existing loans, one exception would be a debt consolidation loan, which helps you streamline multiple loans into one single debt so you only have to focus on one loan repayment instead of many different ones.
This means you will only have one set of loan repayment dates, making it much easier to track and take note of.
Why should you take a debt consolidation loan with licensed money lenders?
One avenue where you can take a debt consolidation loan would be with licensed money lenders, and it often comes with some benefits:
1. Better management
With a debt consolidation loan, all the debt you have currently will be paid off by the loan company. Although that does not eliminate your original debt, it transfers all your debt to a single lender, which makes it much easier to manage and keep track of.
2. Spread out your repayments
Under a debt consolidation plan, you can choose your preferred loan tenure to make your repayments more manageable.
This allows you to be able to pay off what you owe at a more comfortable pace, as compared to having to rush to repay multiple payday loans within the same month.
3. Lower interest rates
With a debt consolidation loan, you will most likely enjoy lower interest rates as compared to multiple payday loans with higher interest rates.
Who is eligible for a debt consolidation loan?
Not everyone with debt will automatically qualify for a debt consolidation loan. To be eligible, you must:
- Be a Singapore Citizen, Permanent Resident, or foreigner with a valid Employment Pass or Work Permit
- Be at least 18 years old
- Be employed (either full-time, part-time, freelance, or self-employed)
- Have met the money lender’s minimum income requirements (which are different for each lender)
Need to pay off multiple payday loans?
At Soon Seng Credit, we offer debt consolidation loans with competitive interest rates as well as fast approval rates — so rest assured that your multiple debts can be cleared relatively quickly with us.
Get a debt consolidation loan to pay off multiple payday loans now.