All About Loan In Singapore
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Why personal loans should be the last avenue of quick cash to consider

When a person is in need of money for something like buying a 2nd hand car or replacing the old worn out couch, they immediately think of running to the bank. When people think about getting married, far too few consider taking a few years to not only get to know the other person but setting up a savings plan together to cover the cost of the wedding. Instead many people take out a personal loan to cover large purchases such as catering and hotel rooms. This starts a bad trend in the marriage.

Having too many loans out can be costly. First of all, there is the interest to consider. Having your principal loan to repay can be difficult in itself, however when you add in 5% or more of an interest rate, then it sky rockets. The banks tend to set the minimum payment lower than they should which keeps you on the hook longer. Most people tend to pay whatever the minimum payment is without looking to see how long it would actually take to pay off this entire debt.

When a person arrives at the bank to discuss taking a personal loan, they usually have a sum in mind. Frequently what happens is they leave the bank having taken out a much bigger loan than they intended. Bank customer service representatives make their money by selling customers on bigger loans, taking out credit cards and offering generous credit lines. The more they sell, the more they make, so they very rarely have a persons best interests on mind. One thing that people usually find out over the course of their lives, is this little gem.

When you really need money, the bank never wants to lend it to you. When you are in debt, the bank is frequently calling and mailing you, with the encouragement to take out more money or switch the type of account. Banks are not in the “doing a favor business,” they are in the making money business and are always looking for a way to put their hands in someone’s pockets.

When applying for a loan, people should read all documents carefully, especially the privacy statements. Banks have been well known to avoid mentioning the issue and then sell a person’s private information to another lender in order to receive a commission.

People should consider getting a second job, perhaps even part-time to raise the cash that they need. Other considerations, could be having a yard sale, or advertising items or collections that are no longer needed. When a person ends up going to a bank for a personal loan, they are ready to hooked like a fish. Banks will try and offer what they call perks, like a cash back loan or the chance of a payment holiday, where a person can skip one or two payments. These gimmicks are never in a persons favor, there is always a back end cost.