You took a debt consolidation loan in Singapore, and everything appears to be moving on well, but old habits die hard — the desire to go shopping every weekend with your credit card appears irresistible. The truth is that if you are not careful about credit, the risk of falling into debts again is only a step away. So, how can you avoid falling into uncontrollable debts again?
This post takes a closer look at debt consolidation to help you understand steps to take to avoid falling back into debt. Instead of sliding back into debt, why not march forward to financial success?
Carry Out a Review of Personal Lifestyle to Determine What Sank You into Debt
To avoid falling back into the life of debts, you need to establish what had landed you there in the first place. Once you understand the primary cause, then blacklist related activities and avoid them completely. For example, there are some people who party a lot and empty their salaries within the first two weeks of getting paid. Then, they go for loans to help them sail the remaining part of the month.
If you have friends who only tell you to head to the club or go on holiday every month, it might be time to look for new ones to be able to avoid falling into debt. At this point, it is important to be honest with yourself. You might also want to seek expert financial assistance with lifestyle changes.
Rethink Unnecessary Costs in Your Budget
To keep your cost low, it is paramount to go back to the basics — reviewing your budget. The ultimate goal should be identifying unnecessary costs and cutting them down or avoiding them completely. For example, are the two cups of coffee you take every day in the office really necessary? Let us look at the numbers. For the two cups of coffee, each at $7, it implies every day you spend $14 or $336 per month. To cut down this cost, why not buy coffee in a packet and prepare your drinks in the office? Other costs that you can cut down include:
- Reduce holiday trips from five to two per year.
- Use economy class ticket when travelling.
- Pay for online movies as opposed to visiting the big screens.
- Use public transport a few days of the week instead of driving every day.
Build an Emergency Fund Account
If you can build an emergency kit for your medical needs, it implies that you will only go for a loan to top it up. Indeed, you should give this kitty priority because you never know when a medical emergency might strike. To ensure that you do not forget to contribute to the emergency kitty, consider asking your bank to do it for you when your salary is credited to your account.
Go for Low-Interest Loans
If the cost of your credit becomes so much, paying it might end up being a challenge. This is why you should only go for loans in Singapore that have good conditions, but this can be a serious challenge because of the long list of banks and licensed moneylenders in Singapore. The easier and better way to do it is using a loan comparison site, such as Lendela.
With Lendela, the loan application only takes a very short moment, a few minutes to be precise. Then, the company submits your application to different lenders and gets offers. From there, you can check the offer with the best conditions, especially the interest rates and loan term. Remember to repay the loan as outlined in the agreement for the entire term.
If you want to enjoy greater financial freedom after consolidating your loans, redefine your life, especially everything to do with finance. Remember that when you want to borrow, only low-interest credit should be sought. Why let the shackles of debt stress you when it is possible to enjoy better financial freedom and success?
