overspending during the holiday season

5 Simple Tips to Avoid Overspending During the Holiday Season

Most people try to be frugal in Singapore during the holidays, but this can be especially difficult when retailers have so many tempting deals for shoppers! Some people use the excuse of missing out on these special offers to spend—sometimes even more than necessary.

Here are five simple life hacks and expert tips to stay within budget and avoid overspending on your holiday shopping every year:

1. Make A Detailed List About Your Holiday Expenses

A list may seem to be a perennial tip for controlling your finances during the holidays, but it’s also among the most overlooked piece of advice. Don’t just write the items that you plan to buy for your friends and family. You should include the estimated price of each gift, the day and time you plan to buy it, and how you intend to pay for it (e.g. cash or credit card).

By making a list, you can avoid an impulse purchase that’s particularly based on emotions. You also save time and effort from randomly selecting items when you’re browsing at a shopping center or online store.

2. Secret Santa and Other Gift Ideas for Big Families

Do you have a large or extended family? It can be a pain in the neck to plan how you can save money on buying holiday presents for everyone each year. A nifty way of limiting your expenses requires an age limit for family members. You can exclude those who are more than 18 years old from your gift list. If that’s not possible, you can just cap the price for each person like not spending over $30.

You can also suggest a Secret Santa for this year. Each person picks a random name and buys a gift only for that person. It saves time and money for everyone, and you’re sure that nobody will judge you for not getting them anything for Christmas or New Year’s Day.

3. Use Your Credit Card’s Cycle Date to Your Advantage

Remember each of your credit cards’ closing dates and purchase items on the next day of every date. For instance, your card’s billing cycle ends during the 1st of each month, and you purchased an item on the 2nd day. The grace period for your payment due date typically ranges from two to three weeks after the closing date. In this case, let’s say that you need to pay your outstanding balance on the 22nd day of the month.

If you bought something on the 1st day and the bank included it to your bill, you only have 21 days to pay for it. On the other hand, you will have almost two months to pay for your purchase if you did it on the 2nd day. That’s because the item you bought will be added to the next month’s billing cycle and should be paid on the 22nd day of the following month.

You should only do this if you have self-discipline on making your purchases, as any uncontrolled transactions will just rack up unnecessary debt. Most people consider credit cards as an extension of their wallets, which is a huge mistake whether or not you have the available cash to pay for your transactions.

Take advantage of your cards’ cycle dates only when you need more time to repay the balance without interest fees. It’s also practical not to put all your outstanding balances on a single card if you have multiple cards, as this may be too burdensome to pay off a large amount within a short period of time.

 

overspending during the holiday season with Credit card

4. Apply for a Personal Loan Instead of Withdrawing Cash from Credit Cards

Those who must spend on a big-ticket item during the holidays shouldn’t withdraw cash from their credit cards. A personal loan will be the better option because of lower rates. Licensed money lenders in Singapore aren’t allowed to impose interest fees that are higher than 4% every month. The average interest rate for cash advances cost $15 for every withdrawal or 5% to 6% of the amount, whichever is higher.

In addition, banks impose a daily interest rate that continues until you have fully paid the money. An ATM will also charge additional fees if you use a card from a different bank to withdraw money. The usual APR charged daily for cash advances ranges from 24% to almost 30%!

Personal loans are better because you only need to pay in installments for a specific number of months. Lenders may also provide a lower interest rate for those with a good credit score. You should only apply for a personal loan for sudden and unavoidable purchases that are not included in your budget.

5. Do a Price Match Among Different Retailers

Online and physical stores give rewards, discounts or other perks to customers who can find cheaper prices on the same products from a competitor. You will need to spend time and effort to pull this off. Some of the usual retailers that encourage price comparisons include Shopee, Toys ‘R’ Us, Babies ‘R’ Us and COURTs.

These stores try to set prices that are between 5% and 10% lower than their business rivals. If you’re successful in finding a cheaper price from other stores, you may be eligible for a special discount or item.

Conclusion

Being frugal in Singapore requires consistency and dedication. If there’s a compelling reason for you to overspend during the holidays, a personal loan from a licensed money lender will be a good option. Applying for a new loan during the holidays goes against the principles of frugality, so you should only think about borrowing cash when you’ve considered other options. Click here to know more about our loan products and interest rates.

Bugis Credit What You Can Do to Avoid Harassment

What Are the Illegal Debt Collection Practices in Singapore?

Debt collectors in Singapore comply with the Credit Collection Association of Singapore’s code of conduct, but it doesn’t stop some unscrupulous individuals and companies to use coercion. If you applied for a personal loan from a licensed moneylender, harassment should never happen when they try to collect unpaid balances.

Whether or not there are laws governing debt collection, the reality often bears a different outcome for each borrower. Arson is an example of what debt collectors can’t do when you are behind loan payments. Loan sharks have been reported to set fires on HDB flats of the delinquent borrowers. Read on to find out how you can protect yourself or your family from illegal debt collection practices.

Bugis Credit What Debt Collectors Can Do

What Debt Collectors Can Do

You should expect a visit to your office from the debt collector. While that’s embarrassing, it’s within the acceptable practices of collecting money if they don’t use foul language or brute force. They can also call your house and ask for your whereabouts, although they should be calling you within business hours during the day. It’s unethical for them to call you at midnight to collect money.

Debt collectors aren’t restricted from stalking your social media accounts, so you need to be careful about what you post online. If you have photos showing lavish trips and shopping purchases, then your debt collector will be compelled to get what you owe them. Make sure that your profiles don’t give them any reasons to suspect that you’re lying about your finances.

If you signed a written agreement with a licensed money lender in Singapore, you are only obliged to pay them within six years of the agreed-upon repayment date. That doesn’t mean, however, that debt collectors won’t try to chase you for unpaid amounts despite not having a written agreement or six years have already passed. This is common for people who lend money to family or friends.

Take note that Singapore allows individuals to lend money to family or friends even without a licensed. You and anyone else isn’t permitted to lend money to businesses. Debt collectors can also speak with your family or friends about your financial obligations, but they shouldn’t experience harassment during each encounter

What Debt Collectors Can’t Do

What Debt Collectors Can’t Do

You should feel safe at your home despite being bombarded with phone calls about your missed repayments. Arson has been a known problem that makes online or offline harassment seem like a better alternative for some borrowers. In 2016, Yishun North had the highest number of unlicensed moneylending harassment cases. The average number of cases reached 97 in Singapore during the same year.

These figures imply that there are still individuals who consider a personal loan with illegal lending companies. The good news is that loan shark harassment cases have steadily declined in recent years. There were more than 3,800 cases recorded in 2017 compared to 11,000 cases recorded in 2013.

If you’re currently dealing with harassment from anyone, you should know that they can’t form groups of more than five people to try and intimidate you. An example involves bringing 20 people to your home, place of work or business to disrupt your daily life. Call the police to have them arrested for illegal assembly.

The Protection from Harassment Act also ensures that individuals don’t feel distressed with verbal abuse from debt collectors. For instance, they broke the law when they threaten to expose you on social media. You shouldn’t be stalked going to and from your home or workplace as well.

Debt collectors aren’t allowed to pretend to be someone from a government agency or the police. Once you determine that they violated the law, you should report them to authorities and file a Protection Order. You must be able to prove that debt collectors are harassing you. It’s easier to do this if you owe money to companies than family or friends. Not all of us are willing to file a case against members of our inner circles.

Bugis Credit What You Can Do to Avoid Harassment

What You Can Do to Avoid Harassment

The best way to avoid harassment is not borrowing money from loan sharks and unlicensed moneylending companies. It’s easier said than done but doing so will provide you with peace of mind that you won’t be a victim of arson or other violent acts.

You can distinguish a licensed lender through their means of communication. Reputable companies will not contact you to offer a personal loan. All applicants should originate from the consumer. If you receive a text or online message about such offers, then it’s likely that they are unlicensed money lenders. Legitimate lending companies will only accept applications in person or online after submitting the necessary documents and paperwork.

Loan sharks and other illegal lenders typically require you to sign a written agreement. Sometimes, you don’t have to sign a document at all. Licensed lending companies don’t engage in this kind of practice, as they are required to follow the regulations by the Monetary Authority of Singapore. You should visit and review the Ministry of Law’s list of licensed money lenders each time you transact with a company, even if you’re sure that they are licensed. The list may change from time to time.

Conclusion

You should remember that a code of conduct or a set of governing laws won’t stop unlicensed money lenders, loan sharks or even your friends and family to go after you to collect overdue personal loan repayments. You should be capable of recognizing what constitutes an unfair debt collection practice.

The likelihood of harassment is higher when you borrow money from a loan shark, so it’s always best to seek financial assistance from a licensed personal loan provider. Call us today and find out more about services and interest rates.

BEST LICENSED MONEY LENDER IN BUGIS PERSONAL LOAN

How to Get a $100,000 Personal Loan

You can easily find lenders who will be interested to offer you an unsecured personal loan with an amount of $100,000 for as long as you have the income and a good to excellent credit score. When you need that amount of money, it is doubly important for you to research and compare the right lender, loan term, and interest rate.

 

There are certain reasons that most lenders accept as reasonable when you apply for a loan. Most often these reasons also make the loan more worthwhile and beneficial for you. These reasons are the following: for consolidating huge loans, renovate homes, and grow or to start a business.

 

Most often lenders consider home improvement as a less risky reason to approve a loan compared to starting a business. There are many other uses for a large amount of personal loan, but you have to choose a lender that specializes in your particular loan purpose.

 

When you are searching for a loan, there are minute yet important elements that you might miss out on such as the fine print, additional costs, other borrowing options, and longer loan terms.

personal Loan When You Have a Bad Credit

The fine print has the terms and conditions of the loan agreement. You have to ask questions when there’s something that you don’t find agreeable. These are some elements that you may need to ask: privacy policies, prepayment options, penalties, and your rights as a borrower.

 

You may also need to check on the additional costs or fees and charges aside from the interest. Some lenders charge the loan origination costs which are often included in the APR or annual percentage rate. You also have to watch out for penalty fees for late payments. These fees may not be included in the APR and they could be hefty.

 

It can be tempting to choose a loan with a longer repayment term, but it will cost you more in the long run. That’s why you have to choose a loan with the shortest loan term that you find comfortable for you pay off.

Before you apply for a personal loan of any amount, it’s crucial for you to determine your eligibility. Lenders often consider the three Cs to determine borrower’s eligibility: character, capital, and capacity.

 

Character means creditworthiness. This will depend on your credit score and other details on your credit report such as open accounts and payment history.
Capital means your collateral which is required when you get a secured personal loan. Usually, the collateral is valued to make sure that the lender can recoup its losses once you miss any of your payments.

 

Capacity is your ability to repay the loan. For this factor, the lender will look into several personal aspects such as your current job and salary and your debt to income ratio to figure out if you have the ability to repay the loan and handle all other financial obligations.

BEST LICENSED MONEY LENDER IN BUGIS PERSONAL LOAN

There are three major sources of $100,000 personal loans: banks, credit unions, and online lenders.

Online Lenders

These are excellent sources of $100,000 personal loans. You can check on a site like Credible which lists down different online lenders that offer large amounts of personal loans. LightStream, for instance, can provide up to $100,000 while Upgrade and Upstart can offer $50,000 each. When the loan amount you need is smaller, you can check Credible and compare prequalified personal loan rates. You can also check the loan terms. All you have to do is to fill out an online form and this will not have any bearing on your credit score.

Banks and Credit Unions

The majority of financial institutions are not capable of offering loans that amount to $100,000; but if you are looking for a bank that can offer this amount, you can go to Wells Fargo. The bank is known for offering larger amounts than most banks. Citizens and Citi will be able to offer up to $50,000 for a personal loan. The same amount goes for many credit unions.

There are many possible uses to a $100,000 personal loan. The money can be used for a home renovation project, to pay off medical bills especially the emergency ones, and even to enable debt consolidation. All these can be done without the need to put up your home as collateral. Before you make up your mind on a particular loan source, you need to review the following factors: interest rate, repayment terms, monthly payment, and total repayment amount.

Interest Rate

This is one of the most significant factors to consider when looking for a lender. This is the amount of money you have to pay in interest charges per year. It is expressed in percentage. It’s not enough to choose the lender that can give you the lowest rate. However, how long it takes for you to pay off the loan has an impact on the interest payments. You will need another calculation to factor in which is the APR or the annual percentage rate.

Repayment Term

Another factor that affects the loan’s repayment cost is the repayment term or the length of time that you must pay off the loan. The usual term for a personal loan is two to seven years. The longer it takes for you to complete the loan payment, the more interest charges you need to pay.

Monthly Payment

The rule of thumb when it comes to choosing a loan based on the monthly payment is to choose the loan with the shortest repayment term that has a monthly payment that is affordable to you.
When it comes to the relationship between the previously mentioned factors, you have to understand that the shorter the repayment term is, the lower is the interest rate offered by a majority of lenders. Another point to remember is that the longer the repayment term, the lower is your monthly payment.

Total Repayment Cost

When you find the right loan for your particular situation, it’s crucial to check the federal Truth in Lending Act (TILA) disclosure which will be provided to you by the lender. You have to look for the information on the finance charges and total payments.

Bugis Credit Loan Sharks Make You Believe That You Don’t Have Other Options

How Loan Sharks Trick You into Getting a Personal Loan With Them

Licensed moneylenders in Singapore have been a good alternative to banks for personal loans, but many still borrow money from loan sharks despite several horror stories about their illegal ways of collecting payment.

Some of the terrifying experiences recounted by victims include harassment on social media and even setting fire to the borrower’s home! Here are four other reasons why you should never think of borrowing money from loan sharks.

Bugis Credit You May Be Unable to Repay the Debt

1. You May Be Unable to Repay the Debt

Unlicensed moneylending involves sky-high interest rates. Licensed money lenders in Singapore will never offer personal loans with more than 4% in monthly interest rates. On the other hand, loan sharks can charge more than 10%.

A story involving a woman who needed to pay bills even had to pay $400 after missing the first week of payment. The unlicensed moneylender originally lent $250, which is more than a 50% interest rate in just seven days!

While the female victim had an agreement to pay $300 after one month, the loan still carried a 20% interest rate that’s higher than the 4% cap on loans from a licensed moneylender.

The scam usually happens through unsolicited phone calls, but fraudsters have become wise enough to avoid detection by using WhatsApp to victimize people.

Bugis Credit Loan Sharks Make You Believe That You Don’t Have Other Options

2. Loan Sharks Make You Believe That You Don’t Have Other Options

Those who borrow from illegal money lenders in Singapore usually don’t have the necessary paperwork needed by banks or licensed lenders, or they simply need to get the money as fast as possible. Loan sharks capitalize on this by promising clients with personal loans that don’t require documents and can be disbursed immediately.

However, you should be aware of financial assistance programs by the government before thinking about borrowing money from a loan shark. Some banks and legitimate money lenders can now process a loan application and release the approved amount within 24 hours. If you don’t have the documents, a licensed money lender will be your best alternative.

Borrowers with poor credit scores are also inclined to borrow from loan sharks, but licensed lending companies also cater to this group of people.

Bugis Credit Unlicensed Lenders Use All Sorts of Dirty Schemes

3. Unlicensed Lenders Use All Sorts of Dirty Schemes

The scheming process of loan sharks evolves constantly. Watch out for those who ask you to sign up for a phone line and handset plan before approving your loan. These companies engage in this trick to let telephone companies do the work of chasing after you, in case of failure to repay the monthly instalments.

How does this work? The loan shark will ask you to sign a two-year contract with M1, Singtel or another company. Once approved, the lender will give money in exchange for the phone. Let’s say the phone from the contract costs $1,500. The loan shark will give $1,000 and you won’t have to repay them. Your responsibility now involves paying the telephone company.

There are several red flags from this scenario, but the most prominent one is the exchange of money for the phone. Some phone companies provide discounted mobile devices for their plans or even give them to customers for free. In other words, you’re paying money for something that’s not in your hands because you “sold” it to a loan shark.

Unlicensed lenders do this because they don’t want to bother chasing after clients who defaulted on small loans, which usually cost from $1,000 and $3,000. By asking the customer to sign up for a phone plan, they pass on the chore of hunting defaulters to telephone companies.

If you need to borrow $3,000, then the loan shark will ask you to sign a phone deal with a handset that’s worth the same as your desired loan amount.

Another shady tactic involves loans with the promise of buying gift cards. Customers will need to agree to buy a certain number of cards within a specific period.

If you borrowed $1,000 from a loan shark, you will have to agree on buying a $100 gift card each week for two months. The cards can be either common gift cards such as AliPay or those from the loan sharks themselves.

Bugis Credit Loans Build Relationships With Clients

4. Loans Build Relationships With Clients

The Hari-Hari type of lending is just another yet milder version of unscrupulous lending money. The term means “daily” in Malay, which refers to the frequency of collecting payments from borrowers. Loan sharks have become familiar with their clients through this scheme, as they see each other each day to collect the money.

People with low-income jobs are usually the clients of Hari-Hari lenders.

Both parties have a good-natured relationship because of the daily encounters, but loan sharks still won’t think twice of harassing their clients if they default on their loans. Most illegal money lenders who use the Hari-Hari system rarely fail to collect payments, possibly because the amount is small when divided into daily instalments.

The problem, however, lies in the accumulated interest payments that can last for several years. Some borrowers even pay 10 times the principal amount! The idea of being familiar on a personal level with their creditors becomes another problem, as they may feel embarrassed when they miss a single payment.

Imagine owing money to a close friend or family member and being unable to repay the loan. How would you feel about it?

Conclusion

A licensed money lender should be your first option for borrowing money instead of looking for a loan shark.

Singapore may have tough rules to deter unscrupulous lenders, but some companies and individuals still ignore these regulations since they know a lot of people need money urgently.

Don’t let your money problems become bigger by choosing a loan shark. Call us today and find out more about our services.

loan calculation

How Is a Personal Loan Calculated?

Almost every one of us has experienced borrowing money from someone else in order to help pay for unplanned expenses. For some, loans are a natural part of their lives which helps them get through their day to day activities. Today it has become relatively easier for just about anyone to apply for personal loans with banks and other related establishments setting up and integrating their services over the internet. This in turn makes it positive for their clients to borrow money at any given time when the need calls for them to do so. Applying for personal loan is easy; however, a number of individuals often get into trouble during repayment. Let us look at some of the factors that come into play when calculating your personal loan.

Familiarizing Yourself with Loan Terms

Before you start calculating your personal loan, it is a good idea to become more familiar with the terms used by banks to help avoid confusion. This can help you save time as you don’t need to have these terms explained to you.

Amount of loan, for instance, is a pretty straightforward term that is used to describe the total amount that you intend to borrow.

Tenor, on the other hand, is the length of time until the loan is due.

Interest Rate is defined as the amount charged and expressed as a percentage for the use of money by a lender to a borrower.

Estimated Monthly Installment is the fixed payment amount made by a borrower to a lender which is to be paid at a specific date each calendar month.

Estimated Total Payment, just as the name implies, is the total cash out to be made on the loan over the specified period of time. It should be noted that the payment also consists of Loan principal and total Interest.

Last but definitely not the least is the Flat Interest Rate which is a term used as the fixed interest charged to the loan.

Calculating Your Personal Loan

Now that we have loan terms out of the way, we can start factoring how much you will be paying for your loan including the interest. The principal amount is the base amount of what you are looking forward to borrow. Loan term will also have a huge contributing factor on how much you will be paying for your personal loan.
Shorter loan terms are considered to be ideal as they have less interest, but they require higher repayments. Longer loan terms, on the other hand, will help greatly reduce your monthly repayments. However, the interest will often cost more as a result. Finding a good measure of balance with your loan terms will definitely go a long way in helping you find success with your loan endeavors.

Another factor that will add up to your personal loan is with how you plan on repaying them. People who decide to pay weekly will receive less interest, allowing them to save a substantial amount of money as a result. Something that you need to consider with your repayment amount is that not all of it goes to paying off your loan directly since a part of it is paid to your interest first. Borrowers have the option to fully pay for their loans in lump sum at any time which is great for those who are worried about their interest rate.

Personal Loan requirements bugis credit
Make Use of Online Resources

It is good to hear that modern technology has contributed greatly in making a variety of our day to day tasks more seamless and hassle free. Personal loans have benefited from such technology, and this can be seen in the existence of loan calculators. Looking up loan calculators over the internet will yield a huge amount of results in just a couple of seconds. A huge number of banks have setup and integrated their services over the internet which include having their own personal loan calculator. This helps them save a fair amount of time and enjoy convenience as a result.

Don’t Be Afraid to Ask Help

It should be noted that loan calculators will only give you a rough estimate on how much you will be paying for when you decide to borrow money from a bank. Those who want to have a much clearer overview with their personal loan may want to consider getting in touch with somebody from loan assistance to receive help. These individuals will be more than happy to help you with your concerns answering questions and other related enquiries with regard to your loan application. Having them by your side can give you a sense of confidence and relief knowing that readily available help may be provided. Go to homepage to learn more.

Borrow Money Wisely

If you are worried about applying for a personal loan, then you may want to consider the reason why you are getting one. You will need to determine if the reason is valid and worth the time and effort of repayment especially since it will take a fair amount of time to clear your debt. It is also a good idea to set realistic goals with regard to your personal loan, thinking ahead about how you can afford to pay it back in the future. You may also want to consider your budget on all levels, including your yearly, monthly and weekly expenses.

It is important to note that unforeseen circumstances may happen in your life. There may be changes in your life that were not entirely planned such as getting sick or perhaps having kids. All of these factors are important and need to be considered since they will have a huge impact in your capacity to pay for your personal loan.

Regardless of how much money you will be borrowing, it is a good to get in touch with a personal loan assistant as early as possible. Doing so will ensure that you will be able to receive your personal loans in a timely and orderly manner with little to no delay.

Also don’t forget that using a loan calculator all the time can help you avoid debt problems in the future.