Scared of taking out personal loans?
Singaporeans have been raised believing that loans could be bad for your finances. However, you should not forget how useful it can be if used wisely.
Choosing the best personal loan and using it in a smart way can strengthen your finances or perhaps even your personal relationships. Have you ever asked yourself:
“What Can I Use a Personal Loan For?”
Here are 10 useful reasons why you must take out a personal loan.
- Avoid making insurance claims
Got insurance? Have you read the fine prints before signing up? There are some insurance policies which gives bonuses to those who do not make insurance claims for a period of time.
There are also some insurance policies which limits the number of claims for a certain period. If it is just a minor claim, some Singaporeans just take a personal loan to avoid making a claim.
You will not know if you’ll need to make claim for something more serious in the future. Also, getting a loan can assure that you can still get the bonus by not making a claim.
- Keep your savings while making a huge purchase
Let’s say you have saved up S15,000 for a grand family vacation in Bali. Are you willing to spend this amount all in your getaway?
What if an emergency suddenly came up during the holiday and you have already used up most of the money in your savings?
Isn’t it better to just get a loan and pay the amount in instalments to be assured that you still have your savings? Savings gives you a peace of mind and spending most of it could put your finances in shaky situations.
- Purchase wedding rings
Instead of using your credit card to purchase your wedding rings, use a personal loan. Why? Because credit cards will absolutely charge you with interest rates that can blow off the roof.
You may choose the installment feature of your credit card, but failure to pay off the monthly due will surely bring disaster to your finances.
Get a personal loan with low-interest rate. Personal loans offered by money lenders have interest rates capped at 4%.
- Avoid using Credit Cash Advance
One of the features most credit cards have is the cash advance. This means that you can withdraw a certain amount charged on your card’s credit limit.
Instant cash it is! However, it comes with a price. The cash you have withdrawn will be charged a processing fee and an interest rate. Also, the interest will be charged daily until you have settled the amount.
- You can help your family and friends
Money matters with relatives and close friends can surely be tricky. There are times when an emergency may come up such as medical condition. If you are a close-knit family, you will most likely to be asked for financial help.
However, there are a lot of stories when relatives or friends do not pay the amount they borrowed. If this happens to you, you will not only be left with low savings, you also have broken relationships.
This is why you should not risk your savings. You will never know when you will have to use it for your emergency. Get a loan which you can easily pay off in instalments. Then, give the funds to your relative or friend. This way you have saved your savings.
Also, tell your family or friend that you took out the loan for them. This will give them much weight to pay back what they have borrowed from you.
If you’ve got multiple credit card debts, you can get a personal loan to cover these. You do not have to keep track of a couple of due dates. With a personal loan, you can pay off your credit cards without having to get another credit card for balance transfer.
- Home renovation
Home renovation loans are usually offered by banks, however, if you just want to make a minor renovation, then you can just opt for a personal loan.
Also, if you have already used up your renovation loan, then you can use a personal loan to finish up the work. This is better than leaving part of your home half-finished.
- Late payments
There are some workers who still receive late payments despite the strict regulation of Ministry of Manpower.
By the time you get your salary, you would have died of starvation unless you get a loan to bridge the financial gap.
- Time-sensitive purchases
Let’s say you have been eyeing an item for a long time and you have been trying to save for it. It suddenly went on sale but your savings is still not enough. You can get a personal loan to finally buy it.
- Avoid borrowing from family and friends
A lot of Singaporeans still value their pride, they are even willing to get a short-term loan rather than asking help from their families and friends.
Personal loans are useful to pay off bills, to lend for the family and friends, or even to survive until next payday. It is multi-purpose and flexible.
However, you need to be smart when choosing the right personal loan for you. Cash Mart offers quick cash loans with the seven-day guarantee. With decades of experience, Cash Mart understands that our needs have become dynamic and so personal loans should also be more accessible.
Need to know more? Visit CashMart.sg now or call at +65 6397 4111.
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