Introduction to money lenders: Money lending is defined as borrowing money or an asset from another person or organization. It is a debt that must be
Introduction to money lenders:
Money lending is defined as borrowing money or an asset from another person or organization. It is a debt that must be settled within a specific time frame agreed upon by the two parties i.e., the lender and the borrower. The amount repaid to the lender generally includes interest as well as the amount loaned (time frame also comes into consideration or their payment pattern as agreed by both the parties). Money lending is legal and permitted in Singapore. Lending to relatives and friends is not regarded as a money lending company that requires a license, but rather a continuous transaction in which an individual can legitimately charge interest on loaned money and is allowed by the Ministry of Law.
To avoid fraud and other scams that might result in you losing your money, you should only borrow from a licensed money lender. To distinguish a licensed moneylender from an unregistered moneylender, licensed moneylenders are only permitted to properly promote their services on their official websites.
There are over 200 lenders presently in Singapore and it is easy to find the one which suits you the best. Some of the licensed money lenders are- Galaxy credit, Fast money, Lending Bee, UK credit, Crawfort, and others.
What is Debt consolidation plan?
Debt consolidation is a financial management method that provides a centralized management program to consolidate all of your lines of credit (e.g., joint accounts, credit cards, and renovation loans) across many banking firms. It seeks to cut your mortgage amount by decreasing the borrowing costs on your expenses, making it easier to pay off the loan.
Debt consolidation for licensed money lender is one of the 4 personal loan types in Singapore. There is usually a range of 3.12% to 12% interest rate for the tenure ranging from 1 to 10 years.
It helps the individual in solving their multiple loan problem, but it is also essential to know not all liens are accountable for this. In Singapore, this facility can only be availed by Permanent residents, citizens, and the foreigner on a valid pass. There are various financial institutions that offer this facility such as Maybank, DBS, Citibank, Diners club, etc.
It is very advantageous as well as it has lower interest rates, long periods, and the reduction of stress. All of these will help the creditors to settle their bills without worrying.
What is the importance of Debt consolidation?
Debt consolidation plan for licensed moneylender is worth it because it helps in managing your debts and save you from other loan traps if controlled properly. Taking a loan is mostly a cycle of borrowing and paying off the money, it’s a cycle which can just keep on increasing if proper steps to manage debts are taken. It is very easy to build up and become stressed, so taking a debt consolidation plan will help you to pay off your debts and restore financial stability.
UK credit is a registered money lender who helps the people in attaining financial stability. They have various types of loans available such as personal loans, payday loans, business loans, etc. They also help individuals with debt consolidation plans. They believe in uplifting the stress of finances from the individuals’ mind and help them with better management of funds. You can also contact them via their website or just email or call them. You can check their loan calculator to learn more about the amounts, interest rates they offer and others.
As a result, debt consolidation for a licensed money lender is an excellent solution if you have a few high-interest loans that must be paid off quickly.
Tips and reminders before applying for a debt consolidation plan:
There are always a lot of reminders which come whenever an individual comes with any financial agenda. The reminders will only enhance the experience and help him/her in eliminating the errors which can be made by them due to lack of experience or knowledge.
Here are the set of reminders which needs to be remembered when you are about to take any debt consolidation plan:
- It is important to compare the debt consolidation plans to understand what suits you the best. Randomly selecting a plan will be very risky and can make you get more loans.
- To know more about the plans, you should reach out to customer help who can guide you properly on their schemes.
- You should also compare various financial institutions and decide as to which fits you the best.
- It is important to read the plan and the agreement properly so that no fuss is caused in the future
- Make a realistic budget when taking a debt consolidation loan so that it can help you to pay off and be stress free from more debts on your shoulders.
Debt consolidation plan for a licensed moneylender plays a major role as it helps in the management of debts and reduces the stress levied on them. This sounds to be a feasible way to deal with debts and specially with loans of higher interest rates. To conclude, we can say that it is really helpful and should be considered with proper vigilance.