Facing a temporary cash crunch and have no friends to fall back on? If so, you can consider taking an instant payday loan.

An instant payday loan is just what its name suggests. You get this instant loan against your pay and the loan is deducted from your next paycheck, hence the word ‘payday loan’. As this loan is approved rather quickly, it is called instant payday loan.

Payday loans are quite popular among salaried individuals, and it is not hard to understand why. This loan, offered by legal money lenders in Singapore, has many advantages over personal loans given by banks and large financial institutions.

Want to know what these advantages are and how you can benefit from a payday loan? Read on.

4 Top Advantages of Instant Payday Loan

Quick Cash Boost

When there’s a temporary financial emergency, you need cash fast, right? That’s why there’s no point in approaching your bank or credit card company for a personal during such a time, for they take anything from a couple of weeks to a fortnight to approve a loan.

However, with instant payday loan, you can get the money quickly, sometimes within a couple of hours after verifying and submitting the required document.

Bad credit report is not a hindrance

If your credit score is below par, you can forget about ever getting a personal loan from a bank or big financial institution. However, in case of a payday loan, your credit score doesn’t count for much. You can easily get a payday loan, whether your credit score is high or low.

You must meet two requirements for payday loan. One, your salary must meet the minimum salary criterion. Two, you need to submit a proof of your employment.

No Paperwork

You need to do a lot of paperwork when applying for a loan from a bank be it fast cash or a quick loan. On the other hand, you can apply for a payday loan online. This is another important benefit of payday loan.

Small payback cycle

You are more likely to fall back on repayment in case of conventional personal loans than payday loans. This is because the latter has a very short payback cycle. In most cases, the money is deducted from your next paycheck.

While you can defer repayment in case of payday loan, you should avoid doing it. As you have seen, payday loans offer many benefits that other loans don’t. All of these benefits come at a cost (remember, there’s no such thing as a free lunch): steep interest rate.

Compared to other loans, payday loans charge at a higher interest rate. That is why, it is your best interest to pay off your instant payday loan as soon as possible.

Keep this in mind

While payday loans can be of great assistance at certain times, you shouldn’t make it a habit to take one every month. Also, remember that a payday loan is only for an emergency. Finally, when taking a payday loan, speak to a few licensed money lenders before finalizing one. This may help you get the best possible deal as the interest rate of payday loan varies from lender to lender.

As a business, whether small or big, you may get into financial trouble, particularly at the very start. Therefore, it is always a good idea to consider taking a loan, be it an instant cash loan or quick loan, from a bank or any other lending institutions. You can either choose to get a business loan or use a personal loan to cover your business expenses. However, before you jump in and get yourself a business loan, here are some of the considerations that you should make.

Knowing yourself

It is crucial for you to know your credit score and credit history. These are the two most important things to impact the lender’s decision and determine the price of the loan along with other terms, such as principal and duration. It is, therefore, a good idea to get a personal credit report beforehand and check for any errors, such as missed payments. Doing so can improve the chances of you getting a loan approval and get better terms on the loan. Usually a good credit score to get favourable terms would be above 700.

Knowing your needs

While applying for the loan, be sure you know exactly the amount of money you need, and when you may need it. The reason for this is that lenders will ask the purpose for which the loan may be required and the exact amount needed. A good idea would be to go over these details with your financial advisor. In case you borrow too much, you may end up paying higher interest rates. If you borrow too little, you may have to get another loan which may cost you more.

Knowing the market

It is very important to know the financial market situation before applying for the loan. First and foremost, you should know what type of a loan you should apply for, and what other borrowing options may be available to you. Moreover, you should have some idea about the market interest rate, and the predictions regarding it. Knowing all these things can help you in getting the best deal possible for yourself.

Knowing your collateral

In cases where a business has to borrow large amounts of money, banks and institutions usually ask for collateral. This is specifically true for smaller, relatively new businesses which have a greater liquidity risk. Therefore, you should be able to declare a collateral, in the form of tangible assets, in order to be able to secure the loan. For this purpose, it is a good idea to have your collateral carefully valued at current price, and understand its future value before handing it over as collateral. However, if you are getting a personal loan from legal money lenders in Singapore, collaterals may not be required.

Knowing your income

To get a loan, you not only need to establish that you require the loan money, with the exact detail of where and how you will spend it, but you also need to explain how you will be able to pay it back. For this reason, you most importantly need to give the bank or money lender an expected income stream, along with any other ways through which you will be paying off this loan. This can help build your case by showing them you have the ability to pay off the loan.

Thus, you should understand that it is not just credit scores or your credit history that a bank or money lender require. The procedure also requires a detailed analysis of why you want the instant loan, and how you will pay it back.

Real estate investment is a good way to earn higher returns with minimum risk of loss as well as to diversify your portfolio. However, as an investor in real estate, you may have often come across the term “hard money” when talking to a dealer, or a realtor, but have no idea what it is. Therefore, we are providing a comprehensive guide to help you out.

What they are

Hard money loan is a term used to define the loans that you may be able to get, or give, based on the property itself, not on the credit rating or score of the borrower. These are usually funded by a group of private investors, with the typical loan term being 12 months, although they may go up to 5 years in some cases. The monthly instalment consists only of interest, with a balloon payment at the end of the loan term for the principal.

Types of properties

The good thing about these hard money loans is that they can be attained for any type of property. Whether you have a residential piece of property, commercial plots or building, or industrial estate, a loan can be obtained for any type of them. However, you may have to look for a hard money lender who specializes in the particular types available.

Who borrows

People in immediate need of money usually opt for such quick loans. These loans allow the funds to be obtained within a couple of days and help cut through the red tape common among regular loans. Similarly, people with a bad credit history or a low credit score may opt to borrow from this source, as this may be the only way these people are able to fulfil this need. However, lenders must always make sure the borrower is legitimate and run a background check on him to ensure the entity is a legal money lender in Singapore.

High risk, high cost

While hard money loans seem ideal for any borrower, there is definitely a downside to them. Borrowers, due to the higher level of risk, will have to pay a higher interest rate on these loans than regular ones. These loans may be as much as 10 percent higher. Lenders often exploit borrowers in such cases, as they are aware of the limited options for the borrowers. Moreover, these loans also have a much higher origination fee.

Further disadvantage

While these loans can have a maximum duration of 5 years, an alternative to these loans are mortgages which have much simpler terms, lower interest rates and a greater time period, commonly between 15 to 30 years. Moreover, this type of loan has a higher risk of property loss. The collateral or rather the guarantor of the loan is the property, resulting in a higher risk of losing your property if you are unable to pay it off.

Hard money loans can be a very good option if you’re looking for funding immediately and will be able to pay it back in a few months. However, keep in mind the higher costs of this choice.

We all want to get debt free but it is not easy as we have limited and fixed monthly income.  If you are reeling under multiple debts, you need to take some immediate steps to cure your financial health. Debt consolidation is a good way to get rid of your debts.  However, there are many misunderstandings about debt consolidation.  Here are few things you should know about debt consolidation.

What is Debt Consolidation?

Debt consolidation refers to the refinancing of your debt in which you take a debt consolidation loan to pay off your other loans.  Debt consolidation does not reduce the loan amount. You still owe the same amount. The only difference is the debt repayment becomes easier as you have only one loan to repay after opting for debt consolidation and you are given a longer repayment period.

What are the advantages of Debt Consolidation?

If you are able to curtail your monthly spending, a debt consolidation can help in:

Reducing your monthly payments

By spreading out the debt repayment period, a debt consolidation loan can reduce your monthly payments to a manageable level which takes off the repayment pressure to some extent. Also, people who have high debts are generally paying “minimum payment” towards their loans which do not reduce the debt. The minimum payment concept only covers the interest amount and you are not paying to reduce the principal amount. Without a debt consolidation loan, you might never pay your debts completely due to the high-interest rates.

Improving your credit score

Your credit score will improve if you are able to make regular payments of your debt consolidation loan since you have no other loans or do not accrue more debt.

Reducing the interest you pay

Credit card dues and some types of personal loans accrue high-interest rates. Debt consolidation loans generally have lower interests than credit card debt depending on the entity you engage with, thereby reducing the interest you pay.

Types of Debt Consolidation Loans

Home Equity Loans

Some licensed money lenders offer home equity loans where your house acts as collateral for the debt consolidation loan.  Home equity loans generally have lower interest rates as the level of risk attached to the lender is lower. The drawback is that your home is on the line for your debt. If you are not able to pay your loan, you risk the foreclosure of your house.

Personal loans

If you are able to borrow a big amount for your personal loan, it can be used to repay multiple debts. Many legal money lenders will offer a large amount as a personal loan but the interest rates of such loans are a bit on the higher side. You can negotiate with the money lender to lower the rate which can be done by extending the loan repayment period

What is the right time to consider Debt Consolidation Loan?

If you are able to make only minimum payment for loans and feel the repayment of loans is becoming unmanageable, it is time to consider debt consolidation.  However, you need to ensure you do not take any loans, including fast cash loans, after paying off other loans as it will make the debt consolidation repayment more difficult.

Getting out of debt needs proper planning.  Making maximum payments towards your loan, reducing spending, and debt consolidation are some of the effective methods to get out of debt.

It is no secret that debts are unwanted for everyone.  For many people, clearing debt is a monolithic task due to limited monthly incomes. The truth is you need proper planning to get out of debt. Here are some good tips to get out of debt, from breaking habits to getting quick loans in Singapore.

Stop Using Credit Cards

Credit card bills that are due are one of the biggest financial problems for many. We become so used to using credit cards that we often forget our capacity to repay. If you are someone who always fails to keep track of your expenses, it will be a good idea to switch from credit cards to debit cards to ensure you only spend what you can afford.

Pay More than the Minimum Due

The minimum due is a sweet financial trap that makes your debt burden. When you choose to pay only the minimum amount due every month, you are not making payment to reduce the principal loan amount. You are only paying part of the interest levied by the credit card issuer. This results in higher interests incurred on a credit card bill due to the small but substantial increases every month. Hence try paying the maximum amount for the credit card due to get out of debt sooner.

Reduce your Spending

When you have fixed monthly incomes, your focus should be on reducing your monthly expenses so that you can allocate more funds for the repayment of your debt.  Take a good look at your monthly budget and create a separate list for monthly necessities and mere wants. You can avoid spending money on your wants, that will leave more money in your hand to repay your debt.

Pay Debts with Higher Interest First

If you have multiple debts; some will have higher interest rates while some will have lower.  You should make a plan to finish paying your debts that have higher interest first. By doing so, the interest generated that you have to pay will be lower compared to paying the loan with lower interest first.

Get a Debt Consolidation Loan

A debt consolidation loan can be a great financial tool to get rid of multiple debts. You can approach a licensed money lender for a debt consolidation loan. These fast approval loans in Singapore have lower interest rates, and you can have longer repayment periods that reduce monthly instalments. By taking a debt consolidation loan, you can quickly pay your loans and focus only on paying the instalments towards debt consolidation loan.

Take a Home Equity Loan

A home equity loan can provide you with a big amount of money that can be used to pay multiple loans. You can approach legal moneylenders for a home equity loan. The moneylender might offer you a lower interest rate as your home is used as collateral for the loan. You need to pay instalment for your home equity loan on time as there is a risk of foreclosure if you default on repayment of the loan.

No matter what method you choose to get out of debt, you should avoid taking new loans until you are completely out of debt.