All About Loan In Singapore
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Your Resposibility As A Borrower

There are certain responsibilities that you have to accept as a borrower both implicitly and explicitly. Responsible borrowing is being accountable on how you spend your cash and how you are going to repay a loan to a lender. For example, A car loan is sometimes considers a luxury loan especially when you put it in the context of Singapore. Certificate Of Entitlement (COE) at current prices already costs way more than a number of economy cars by itself. Never take up a loan that you cannot handle. It may be your dream car, but if you know that you cannot afford it, think twice before buying it.

Always allow for a buffer when you do your own calculations of whether you can afford a loan. If you make a personal income of $4,000 a month, you may be comfortable with using half of that to service your personal financial credit facilities. However, do remember that a car loan is unlikely going to be your only financial commitment. Housing loans, renovation loans, credit cards, etc have to be considered as well. So if you already have a financial commitment of $1,500 every month. It make little sense to buy a car that will set you back $1,000 each month. You will be way over your budget. Your family will suffer if you are the sole breadwinner. And we have yet to even talk about maintaining the car itself.

Ask yourself whether there are any financial burdens that are unnecessary. Weed them out and never look back. Review you indulgence in SCV, MioTV, your 3 M1 lines, etc. Very often when you have decided to terminate these services, they will offer a package you cannot refuse anyway.

Being responsible with your borrowings is important. You can find yourself in big trouble in future if you don’t act responsibly with the money you borrow. You can end up in court and lose your personal assets if you default on your borrowings. So don’t take up a loan just so that you can travel and see the beauty of Korea knowing that you will struggle to repay it.

There are a host of information that can help you manage your money better online. So before splashing the cash on the latest iPhone, Spend a moment to think about whether you can afford it. When you do have cash on hand, seriously consider paying off whatever you owe from the bank so that you can save on interest charges. Getting into financial trouble will truly put your reputation at stake.