Singaporeans are known for having a stable economy. The surrounding nations even gave the nickname "The Asian tiger" for its small growth economically. So, in general, it sounds like Singapore is very stable.
But let's face the facts even the best economy can affect our spending habits. Whether we know how to use our paycheck for the better or worst having an environment where spending is a breeze can affect your wallet. So before you decide on where you want your money to go let's cross-examine the criteria of a payday loan and why they are so popular in today's market.
What Is A Payday Loan?
A payday loan is a relatively small amount of money given to you at a high rate of interest on the agreement that you will pay back what you borrowed when you receive your next paycheck. Often companies display these as "quick cash today" or "receive cash today" slogans to catch your attention.
But be very cautious and aware that these payday loans come with high interest rates and these types of loans should be a last resort.
So hold on before you take a step into that business firm with the objective of receiving cash today because these can bring financial ruin to yourself.
Let's ask some questions before getting involved with loans and what they can do for you.
How Can I Receive Cash As Soon As Possible?
Payday loans seem like the best route but are sometimes not and have the most risk. Take a quick look at some other options instead of a payday loan because loans, in general, are easy to obtain only if you know exactly where your funds are going plus it will cost less to take out. Interest rates for a student loan or a home loan are less because of the bank or moneylender knows that the money is going into something responsible and not because you are irresponsible with your income. Banks and moneylenders will charge less because they know that receiving cash from you won't be a struggle.
Always check around to see if you can apply for other loans before you even think about applying for a payday loan. Do you need a new car? A car loan could be for the purchase of either a brand new vehicle or a pre-owned vehicle. Interested in taking an education course? An education loan is desired for payment of tuition fees, fulfillment of daily living expenses in learning institutions, buying of books, etc. The last resort you want to get is a payday loan, try to see if you can get a personal loan that has a low-interest rate.
If you are in desperate need of cash right now and have tried all other options, looks like your in a predicament. A personal loan may be the way to go if you don't need the cash right this instant.
Trying To Make Cash Appear Out Of Thin Air?
Taking out a Payday Loan comes with high-interest rates, which could give yourself a heart attack. Lose the stress and relax.
Purchasing items with your credit card may be easier than applying for a payday loan. Interest rates on a credit card only get higher if you don't pay your bill on time. If you manage to pay your bill exactly on time no need to worry. Hold on before you start swiping away and making purchases, you might get yourself in credit card debt.
Start thinking of ways to make cash. Do you have tons of items you barely use? Try selling such items to receive some extra cash. You could try asking for help from family or friends that could be a benefit you financially if you are in a bind. Canceling a gym membership or any subscriptions could help you financially to help to save cash to pay off any debt owed. Ask your boss for a raise or work more hours even looking for a second job might help you avoid being tempted to apply for a payday loan. Whatever is necessary that would help you not get into debt try it your financial future is at stake.
Already hooked on Payday Loans?
Looks like your already in some financial trouble if you take payday loans regularly. For example, if you were training for a marathon and on the last day before the big event, you decided to eat as much junk food you could possibly imagine then expect the next day to finish first you're dead wrong. Not maintaining a healthy regime would only result in finishing last or struggling to cross the finish line. If you already have good financial health you should never take out a payday loan. Payday loans are like junk food to an athlete and aren't healthy for you financially.
If you already have taken out a payday loan, I would recommend looking over your finances. Start an emergency funds account that could help you in financial situations and avoid the temptation to take money out of that emergency funds account. Many people consider a payday loan as a quick escape out of any financial trouble but in reality payday loans only help to sink your financial stability.
In conclusion, if you are spending way too much from your current income reexamine your spending budget and cut back on any unnecessary purchases to help save you money. Once you’ve done so consistently bringing down your spending, use that extra cash towards building an emergency fund. So the next time you're in a financial crisis you won't have to look for help from Payday Loans.