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Over the last few years, Singaporeans have been applying for more unsecured loans than any other time in history, with some surpassing 12 times their monthly salaries. In 2020 and 2021, these numbers have gone up even further because of the COVID-19 pandemic. So, if you are one of those reeling under the burden of so many bills, it might be a great idea to take a debt consolidation loan.
If you decide to go for debt consolidation, we will tell you the four most important things to do once it isapproved. Keep reading to also learn how to apply for debt consolidation loans in Singapore through Lendela.
Important Things to Do after Securing a Debt Consolidation Loan
Once a lender agrees to loan you, the next thing is paying until the entire amount plus interest and applicable fees are cleared. Other crucial things to do include:
Changing Personal Spending Habits
One of the main reasons why you are probably under the burden of debts is personal spending habits. Once your debt consolidation loan is approved in Singapore, you need to change personal spending habits. Indeed, you will not be able to access unsecured credit until the debt has fallen to manageable levels.
Other personal spending habits that you might want to consider for freeing more cash for loan repayment, building your emergency funds, and growing savings include:
- Shifting to public transport some of the days of the week.
- Using alternative but inexpensive quality food options.
- Cutting down the number of times you go for holidays every year.
Improving Personal Financial Skills
One of the best things that you can do about the current multiple debts that are giving you problems and debt consolidation plan under consideration is using them to improve your financial skills. For example, “Were the current large number of debts as a result of abusing your credit cards?” or “Did you end up borrowing because of emergencies?”
By using the current situation to build your skills, you are sure of ultimately emerging a better person. For example, expanding your emergency account can help to cater for the unforeseen issues, be they medical or renovation requirements. You might also want to take medical insurance to cater for the costs of treatments and checkups for your family.
Furthermore, you should increase your streams of revenue. These skills will reduce the need to borrow more because an unexpected occurrence has happened. The overall effect will be lower debt levels and greater control over your finances.
Loan Refinancing to Enjoy Lower Interest Rates
To approve your loan, one of the things that lenders give a lot of focus on is the credit score. If your credit score was not so good when you applied for debt consolidation, it implies that the interest rate will be high. If you significantly improve the credit score, your lender might be ready to refinance the loan. This means that you take another loan with a lower interest rate to clear the older one.
Because not all lenders support refinancing, it is important to ask about it before signing the consolidation loanagreement. Again, note that you will be taking another loan, and it is crucial to think about the payable amount to ensure it can be cleared easily and fast.
Lendela – Best Way to Apply for a Debt Consolidation Loan in Singapore
Now that you know what to do after debt consolidation in Singapore, you might be worried about the best lenders. Finding the best lender can be an uphill task because you are required to compare their varied terms and conditions, such as interest rates, fees and loan terms. However, there is an easier and more reliable way – using Lendela.
Lendela is a lender comparison site made to help loan applicants complete the process fast and conveniently. You only have to follow the following few steps:
- Visit Lendela site to make a short application (this takes only a few minutes).
- Receive offers from different lenders.
- Compare the offers and pick the best.
- Sign the consolidation loan agreement.
As you go for a debt consolidation loan, make sure to think of how to get out of the current situation and emerge a better person. You can achieve this using the strategies we have listed in this post.