Financial hardship can hit anyone at any time. If this happens to you, and you have debts to pay to banks or private money lenders in Singapore, the situation can be particularly challenging and stressful. Even then, it is quite possible to get out of debt despite financial difficulty.
Debt repayment may not be high on your list of priorities in financially challenging times. Understandably, you need to put you and your family’s needs first. Still, you can make efforts to slowly pay down your debts. Here are three ways for you to achieve exactly that.
Aim to pay down at least the minimum monthly obligations
As much as possible, avoid not paying your monthly dues. This will only rack up late payment fees and interest, which will make your financial situation even worse. Your debt may rack up uncontrollably if this is not addressed.
Instead, pay down at least the minimum amounts required for each loan and credit facility you owe. That way, you can still slowly pay down your debts while not straining your budget too much.
Also, try to pay down more than the monthly minimums whenever your budget allows it. With that, you can get rid of your debts sooner.
Cut down on unnecessary spending
For many people, financial problems stem from overspending. With that, review your monthly expenses and consider each one carefully. If you see any expense that you can avoid, do away with it immediately. That way, you can designate more money into debt repayments.
When you cut unnecessary expenses, you may find that you are actually not going over your budget even with paying down your debts. You may just be spending too much on things you don’t really need.
Apply for a Debt Management Programme (DMP)
If your financial situation is more dire, you can try applying for a DMP. This is offered by organisations like Credit Counselling Singapore (CCS), who will help you navigate paying off your debts despite financial difficulty.
In summary, a DMP is a way of restructuring all of your outstanding debts into one. This means you will only have to pay off one debt instead of multiple debts. This restructuring saves you the hassle of keeping up with different monthly deadlines and repayment amounts. Also, the restructured debt will be easier to pay off and will give you more time.
When you qualify for a DMP, the CCS will facilitate a more reasonable and achievable debt repayment plan, coordinating with major banks and credit institutions in Singapore. You will pay less interest over a longer repayment period. With this, you can pay off your debts even if you are struggling financially.
Conclusion
Even if you’re having a hard time financially, paying off your debts is still possible. If you prioritise it, remove unnecessary expenses, and use debt restructuring plans, you can escape the debt trap sooner. Lenders like Soon Seng Credit can even help you if you need additional money along the way.
