4 Reasons to Consolidate Your Loans And Cut Back On Stress

List Of Moneylender Singapore

Let’s face it: you need loans on a rainy day or when you’re starting out on your own as a new business owner. Loans in this way, can be seen as essential spare cash or a safety net for you. At times, you might even find yourself applying for several loans to pay off a sudden medical fee or to invest in your business development.

In such situations, it’s common for borrowers to find themselves with multiple loans and multiple agreements that they find difficulty keeping track of. When the time comes, the loans are due, but you might not have sufficient funds to pay the loans off. The result? Unfortunately, you would probably end up incurring fees when unable to pay on time.

As such, perhaps the best alternative is to apply for consolidation loans in Singapore to manage your finances better. Check the following reasons why consolidations loans have remained a popular loan, and why you should consider replacing your multiple loans with a consolidation loan.

1. You shift from multiple payments to one single payment

Yes, it’s true, taking one huge debt can seem quite risky. However, you might have failed to consider that it’s so much easier to keep track of one big payment than multiple small payments. Consolidating your loan means you’re less likely to incur late fees, interest charges, and more. In time to come, you would have saved up a hefty sum.

2. Longer and better payment terms

With one large payment instead of multiple smaller fees, your initial worries might centre around this concern: would the accompanying interest rate be much higher?

But in fact, when you combine your loans into a single one, you essentially collapse your debt into one loan. As a result, your potential interest rate is significantly streamlined and you would save a hefty sum in the long term. What’s more, when you speak and share your worries with the licensed moneylender, there are more chances to discuss and tailor the payments to your needs.

3. Minimal stress

Because you only have to worry about one monthly payment, you would not need to stress yourself as much as if you had multiple charges.

Each month, simply remember to make that payment. This would effectively reduce your chances of losing track of a loan, only realising you have done so when you incur sky-high penalty fees. Explore your monthly payment options for the consolidated loans – you might even be able to make the payment automatic and with ease.

4. Improved credit score

Naturally, when you stay on top of your consolidated loan and can afford to pay your fees on time, your credit score will improve. However, one thing to note is that the score improvement does not happen overnight. It would probably take a while for it to be registered and reflected in your credit score.

Also, don’t be too alarmed if you see an initial slight dip in the score. That is because you recently took on a new debt with the consolidation loan. But, in the bigger picture, your credit score should improve.

Conclusion

When you are consolidating your loans today, be sure to check that you’re only dealing with licensed financial institutions and moneylenders. Not sure how to check for their certification? You can look up online for the list of moneylenders in Singapore, compare the terms and conditions of the respective loans, and choose the preferred moneylender for your debt consolidation loan.

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