Life happens, and sometimes you may be stuck in a rut when faced with an emergency, requiring a large sum of cash that you don’t readily have. Sometimes, you may also need a better money-saving alternative to high-interest rate credit cards for a big-ticket expense.
Instant personal loans in Singapore can help you to save money when used responsibly. Personal loans can be used for just about anything such as renovating your house, paying off your student loans, taking out a new mortgage, planning a wedding, and so on. While loans are usually tied to a specific purpose, the beauty of personal loans lies in their flexibility and attractive personal interest rates. Find out how instant personal loans can be a great option to help you save money.
When should you use one?
Before taking out any type of loan, always ask yourself if you can repay it. Instant personal loans are best used for purchases that you intend to repay in less than 5 years so that you don’t risk accumulating debt. You can easily find a personal loan promotion in Singapore which you can use to fund a one-time big expense. There might come a point in time where you may require a huge amount of cash for emergencies such as medical expenses or even personal milestones such as a wedding or home renovation.
Since personal loans are used at your discretion, make sure to devise a payment plan to see if you can repay the loan in the shortest time possible. This can help you save up some cash for a rainy day while still being able to pay off your debt at a lower personal loan interest rate compared to other money lending options.
Debt consolidation loans
A debt consolidation loan is one of the most popular and smartest instant personal loans you can use to pay off existing debt. It can help you pay off high-interest credit card debt with a lower personal loan interest rate. As our financial commitments pile up, it can be tricky to keep track of the various types of loans we have. Using a debt consolidation loan to combine your different debts into a single payment can help make repayment more manageable and stress-free for you. It would be a good option to consider especially if you are already in debt.
Of course, this is assuming that you do use an instant personal loan wisely to pay off your debts and not as a tool to postpone or accumulate them further.
Ditch high-interest rates
Another way a personal loan in Singapore can help you save money is that it can absorb a higher interest loan with a lower interest one. If you have a good credit score, you should have no problems obtaining a lower interest rate compared to your credit cards or other money lending options.
If you qualify for a lower personal loan interest rate, make sure you can repay the loan over the stipulated repayment period to save on interest rates and help you clear your debts quickly.
For example, if you have an existing $10,000 debt with an interest of 12%, having an instant personal loan with 4% interest would help you pay off this debt at a lower interest rate, thus allowing you to save more as you would be paying less than half the original interest rate.
The bottomline of using a personal loan in Singapore to refinance your debts is that it can help you save more money if you manage to secure a lower personal loan interest rate. It can also help you fund big-ticket expenses during emergencies that you can comfortably repay over a period of time.