The simple idea of getting a loan seems to be one that makes a large number of people in Singapore feel a bit uneasy. They feel that this is the beginning of a series of debts that they will owe and this is not a good way for them to shape their financial future properly. The good news is that getting a personal loan in Singapore is not a problem if you know what you are doing and if you know how to do it properly.

In this article, we are going to give you the top 8 reasons why getting a personal loan is not a bad idea and how this can be very beneficial for your economy.

#1 Emergencies and serious financial issues

There are some cases in which you can use the medical loan as the perfect way to lower your expenses and get the best possible results. Some situations in life will force you to get a loan and this is perfectly justifiable if something happens that is truly out of your control. There are things such a sudden illness, and sudden problems that your loved ones might face or natural disasters that can be more than enough of a reason for you to get a personal loan.

#2 Personal loans make up for shortcomings with renovation loans

There are many situations in which people take out renovation loans that end up falling short of their needs. This is the kind of situation in which the personal loan can come to the rescue and make things much easier for anyone who needs to get that final cash flow to push to get their renovations done fast. This is a very smart move that many renovators are making, and this allows them to keep their personal savings intact if they have any.

#3 Consolidating debt

Debt consolidation can be a very powerful way for anyone to get out of debt in a way that allows them to make a single payment monthly for all of their debts and the payment is going to be much smaller than what they would pay if they paid them separately. Debt consolidation is always a great way to do this, but with a personal loan, it would be different. You could for example ask for a personal loan to pay off all of your credit card debt and then you could simply pay your loan and stop building up interest on several credit cards.

#4 Don’t use your savings for vacations

Some people save for years in order to enjoy a long vacation, but this is not the best way to handle this kind of situation. The best way to do this is to get a personal loan to pay for your holiday trip and this way you won’t have to spend any of your saved money in case you have an emergency. You never know when a serious emergency is going to disrupt your current financial situation. Vacations are great, but using your personal savings to finance them is not going to be the most reliable way to get things done if you consider the possibility of setbacks.

#5 It’s great to avoid using insurance bonus

There are some insurance companies that will allow you to get bonuses if you don’t file any claims after a certain amount of time. By asking for a personal loan, you won’t be messing with your insurance in any way and you will be able to keep your discounts and bonuses without having to worry about this in the future.

#6 It’s a much better alternative to cash advance credit cards

There are many credit card companies that allow you to get a cash advance on your credit line, but this is a terrible thing to do because you will be paying a lot on interest if you pay off that cash advance in small payments. A personal loan allows you to avoid these huge interest rates and you will balance things out properly. The worst and most damaging debt you can get is credit card debt, so always keep this in mind when you plan to retrieve any money with credit cards or any other method that has high-interest rates.

#7 They are better for expensive purchases

A personal loan can be a much better way for someone to acquire any kind of expensive items. For example, a wedding ring or a very expensive set of furniture for your home might be better purchased with a personal loan instead of using credit cards or using your savings. Just make sure that the loan you get is going to have very low-interest rates that are better than the credit card rates.

#8 Cover for any salary delays

If your employer owes you money, you have the right to get immediate assistance from the ministry of manpower, but this is not going to make any difference in the fact that you are still without your salary and it could take a while before you see that money. A personal loan is going to be a great way for you to cover this kind of situation and it will allow you to get the best possible results.

Final Thoughts

The process of asking for a personal loan might seem intimidating, but this is a very useful way to get out of debt and to avoid the high-interest rates that other credit lines could end up costing you. This is going to be the best way for you to regain balance and financial control in case you have any complications. Those 8 reasons why this is a good idea are not exclusive, but they are the most common.

Just remember to do your own research on the kind of interest rates that you would be paying if you got your personal loan. The last thing you want is to be paying one that clearly exceeds the interest rates of the other options available.

Published On: September 14th, 2020

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