It seems that we see instant loan offices everywhere we go and everywhere we look. A jaunt home from the MRT station or a quick look through our social media accounts will have the presence of instant loan companies, be it physical or virtual. What exactly has caused their popularity to surge to such high levels? In this article, we look at a few reasons that has led to this.
Drop in Salaries
Whether you live in Singapore, or in any developed country, there has been a steady decline in the monthly income of people across various professions. A recent survey has suggested that the current pay structure of many professionals living and working in Singapore is not what is used to be 20 years ago. When you compare the inflation rate with increases in salary structures, you will find a big gap. Inflation rates have been continually increasing, things are becoming more expensive, but salaries in both private and public sectors have yet to see a proportional increase.
This has resulted in even greater levels of financial pressure on many Singaporeans. Eventually, they are tempted to apply for an instant cash loan to make ends meet. A strong factor that draws them to instant loans is that the application process is fairly simple and most people clear the instant loan approval phase without facing any difficulties.
Excessive Use of Credit Cards
20 years ago, you will tend to find that people viewed their credit cards as their emergency funds and only used it when there was a genuine need for it. Since then, there has been a shift in attitudes. Now, people use their credit cards freely. Often treated as an extension of their monthly salaries, many people use their credit card once they have spent their earnings. This encourages increased patronisation of instant loan lenders to pay off their credit card debts. However, building up a debt to pay off a debt is symptomatic of an ever-deepening position in debt cycle. It is important to watch your spending and keep track or your loan periods to prevent yourself from getting into a financial problem.
Inflation is another major factor pushing people towards looking and applying for instant cash loans. The stereotypical salary man was previously able to easily take care of his or her family expenses without feeling the need of borrowing extra money. Lower prices across one’s social and private lives ensured that the cost of living was more economical. Even several economic crises have failed to derail persistent inflation across the globe. Today, inflation rates are reaching all-time highs and people are finding harder and harder to make ends meet as the value of their income keeps dropping. The continuous devaluation of income makes instant loans a compelling temptation in these circumstances.
Put together, these reasons explain why there is increasing demand for instant cash loans in Singapore and why we can so easily see and find places offering instant cash loans across Singapore.