To be successful in life, you must know how to manage your finances well. You must ensure that you have enough left over after you have finished with your loan (principal and interest) repayments. Life in Singapore is just like life in any developed nation – it’s easy and nice so long you balance your finances. Obtaining a personal loan Singapore is very easy and you can be granted one across the table. But, before you walk into your bank and request for a personal loan, you must be financially fit. Here is a small questionnaire that will help you understand your financial health:
1. Do you know what could happen if you default on repaying your loan installments? If you use your credit card frequently or obtain a personal loan Singapore, then your payment must be in full and on time. If you do not pay on time or do not pay in full, your credit score will get impacted and your loan balance will keep ballooning. If your credit score drops, so will your creditworthiness.
2. Do you balance your checkbook? Ideally, you should know always know the balance in your bank account without even referring to the bank statement. Get into the habit of balancing your checkbook and you will get a firm grasp on your finances.
3. Do you draw up a home budget and then later check to see if you have managed your finances as per your plan? If not, you must start budgeting right away. Create an Excel spreadsheet and calculate how much you spend on home needs and see if you have enough left over to repay your loans and credit card debts. save this leftover amount and make this a habit.
4. Is there sufficient balance in your bank account? Always maintain liquidity and ensure there is enough money in your bank account to help you face difficult times. The global economy is very jittery and you must provide adequately for your family.
5. Are you well-invested? Do you have a healthy investment portfolio? You must invest in a basket of assets such as real assets, deposits, stocks, precious metals, etc. Don’t park all your money only in one asset.
6. Do you use your credit cards wisely? Indiscriminate swiping of credit cards can lead to a massive debt. A massive debt will tempt you to repay it in installments. Once you start paying credit card debt in installments, the interest rate shoots up and you end up paying interest on interest. So, be careful with your credit card use.
7. Do you keep a check on your credit score? If not, you must. Obtain your credit report from each credit bureau and correct errors immediately. Mistakes in your credit report can lower your credit score and then people will refuse you loans. A house owner may even refuse to lease his house to you if your credit score is low.
So, well, if you wish to obtain a personal loan Singapore, go right ahead by all means. Just follow our guidelines and ensure that you are financially fit.