Borrowing money is not always synonymous with budget out-of-control. In some situations, the loan helps to organize accounts and even save money. Here’s your case:
You have expensive debts
Changing high interest rates for a cheaper rate from 1% interest money lender Singapore is a good way to get the finances in order and to save money. It is better to take out a personal loan and clear big debts than to see the debt multiply in a short time.
But the benefit of swapping expensive debt for cheap can disappear if you do not take care.
You are thinking of splitting the invoice from the card
Picking up a personal credit is more advantageous than splitting the invoice from the card if you compare the rates – even after changing the rules of the rotary, which forces the consumer to pay off the invoice after 30 days of the minimum payment. This rule is beneficial because it migrates the consumer from the rotary to the installment of the card, reducing the interest rate of the house from 500% per year to something around 150% per year. Even so, it is still much more expensive to fail to pay off the total credit card bill and be required to install.
An emergency expense has arisen
Unexpected expenses that cannot be postponed, such as some medical emergency in the family, can appear and tighten the budget. First it is important to understand if you have any other expenses that you can cut to afford the emergency. Also assess whether to dispose of some asset, even a vehicle, before borrowing money.
If it is not possible, the way out is to get money to pay. In these cases, it is difficult to choose objectively and you may end up hiring a credit option that is not the best for your case.