There is a general disdain that people have for payday loan packages in Singapore, associating it with poor planning on a borrower’s part. However, nothing could be further from the truth. You can make detailed plans for all your projects, investments and monthly expenditure. You can account for every dollar earned from all your sources of income and see that it is put to good use. You can even plan for emergencies and possible matters arising, but it impossible to plan for every eventuality.
When you have a small emergency and your funds are tied up with other commitments, you have to raise money fast, and this is where payday loans are handy. Instances when you may need it include:
- To cover medical emergencies.
- To stake a claim on an asset you’ve identified e.g. house, car, and phone.
- Education related expenses e.g. trips, excursions, class projects.
- Temporary cash flow crises.
- Replacement of stolen or damaged vital property e.g. computers, phones etc.
- To top up for vacations.
- Other important arising expenses.
No red tape
These loans are advantageous because they dispense with much of the red tape surrounding the borrowing process. They are unsecured thus you don’t have to go through the processes associated with providing collateral.
Credit checks and scores are also unnecessary, since these loans are typically paid in a single installment, so if your next salary is sufficient you can get the loan. You’ll issue an order/check for the repayment on the spot, so the lender is sure to get the money back when you say it will.
Effective uses of the payday loan
Even though you can get it for virtually anything and the lender won’t ask how you intend to spend it, it is imprudent to take a loan to service another loan on which you are unable to make repayment. This will simply start you on a cycle that will have you drowning in debt in no time.
Once you have seen a moneylender’s advertisement with what you’re looking for, it is essential that you still carry out further research on it. Like you can read review sites that have details from previous clients, but the most important thing it to make sure it is licensed. Provided that is solid, you shouldn’t have any problem with them. Licensed money lenders in Singapore have a government-regulated code of conduct they have to play by or risk losing their license.
Don’t just take the face value of the advert, those are deigned to draw you in. Carry out your own research.