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.
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, either by the next month or by the time 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.
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.
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.
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 centralise all your multiple loans into one single debt so you only have to focus one one loan repayment instead of many different ones.
This means you will only have one set of loan repayment dates, making it way easier to track and take note of.
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.
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.
With a debt consolidation loan, you will most likely enjoy lower interest rates as compared to multiple payday loans with higher interest rates.
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 21 years old
- Be employed (either full time, part time 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, we offer debt consolidation loans with affordable interest rates as well as fast approval rates – so rest assured that your multiple debts can be cleared very quickly with us.