Are you losing hope you won’t be able to get out of your debts from licensed money lender? We all have our reasons for borrowing that money. Whether a loan is planned or not, still many people get into the trap of high interest and eventually sink in piles of debts. But Worry no more because at one step a time, you can survive and take your life back.
3 Tips How to Get Out of Debt from Licensed Money Lender
1. Sit down and thoroughly evaluate your cash flow.
Your cash flow includes your regular income and expenses. In this step, you have to retrieve your monthly billing statements, receipts, and list down other things you put your money in. You should see here whether you spend beyond your means and have to take action. Learn how to prioritize and eliminate the things you do not need like magazine subscriptions or aerobics class membership. You have to be creative in finding alternatives which will surely save you money. Instead of leisure magazines, invest in financial books or go to the nearest park for some exercise.
2. Cut that credit card.
Many Singaporeans got chained with credit card debt. Credit cards, if not paid on time will give you accumulating interests and penalties. Your debt will not stop growing unless you pay all of it and cut it out. As of 2015, credit card debt comprises 4.3% of consumer loan in 2015 (Department of Statistics).
So first, face the truth and list down how much you owe from the licensed moneylender. Then arrange it from ones with highest to lowest interest rate. Make it a goal to pay it one at a time, beginning from the one with the highest interest.
3. Be realistic in creating your repayment plan.
Once you identified your current financial status and capability, now you can create your plan on how to pay for your debts. Don’t be overwhelmed by your emotions and borrow money again to pay your debt because you’ll repeat your cycle. Stick with your plan and be patient on accomplishing them.
You cannot bring back the time and money you wasted to survive your debts from a licensed money lender. So instead of worrying, you have to pick-up yourself and make small steps towards financial freedom. Stop blaming yourself or others, take the lessons learned.