8 Ways to get out of personal loan debt

8 Ways to get out of personal loan debt

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Working hard to find out how to get out of a personal loan debt
Working hard to find out how to get out of a personal loan debt

Sometimes, if borrowers don’t repay their personal loans on time, it can be easy to get into a cycle of debt where late fees might accumulate. This can be very stressful to deal with and often, you might be at a loss of what you can do.

How can you better manage your finances and learn how to get out of a personal loan fast?

Read on to find out.

1. Pay more than the minimum required amount every instalment

To finish clearing your debt earlier, you can set aside a higher budget from your income to repay more than the required amount every month.

Do your budgeting and decide on the additional funds that you can afford to contribute month on month. For example, if you need to repay $627 a month, you can possibly round it up to $650 if you can afford it.

However, some lenders might impose penalties for early repayment, so do check with them first.

2. Avoid taking multiple loans

Try to avoid taking multiple loans as much as possible as it will cause your debt to accumulate. It can also be financially challenging to juggle multiple loans. Limiting the number of loans under your name is a sure-fire solution to getting out of a personal loan debt.

3. Take a debt consolidation loan if you have multiple loans

If you have multiple personal loans, it would be helpful to take a debt consolidation loan, which helps you consolidate all your existing loans into one from a single lender. You also get to repay your loan at lower interest rates with manageable instalments.

Having just one repayment deadline will help you manage your time and resources so you can clear off your debt efficiently.

4. Budget well and set aside a fixed repayment amount

When it comes to being financially secure, it all boils down to your behaviour and relationship with money. A good tip is to budget and plan well. After receiving your income, instead of spending it first, set aside the repayment amount first (even if repayment deadline is not on payday) before using the rest for expenses and savings.

This ensures you will have enough to pay the instalments and clear your debt on time.

5. Set a reminder and repay your loan on time

Another way to get out of a personal loan debt quickly is to set a reminder for repayment dates so you will never miss a due date. Licensed money lenders will usually send reminders but just in case, it is better to set your own reminder.

If the repayment deadline is missed, you will need to pay late interest and late fees, which can cause your debt to add up.

6. Resist the urge to splurge but save instead

Saving is key! It’s all about resisting the temptation to splurge on your payday. It’s best that you set aside a fixed amount for your expenses and bills including your loans. Having an emergency fund is crucial – always save for a rainy day so you won’t have to take up more loans if a crisis arises.

7. Consider government financial assistance schemes

If your monthly income is low and you’re struggling to pay your expenses, it might be helpful for you to secure short-term government financial assistance like ComCare (if you qualify for it) instead of taking up a loan.

8 Consider debt counselling if you are in excess debt

If you are struggling to clear your debts, you can consider debt counselling at these social service agencies:

Adullam Life Counselling
Address: 151 Chin Swee Road #08-04 Manhattan House Singapore 169876
Tel no.: 9423 8832
E-mail: [email protected]

Association of Muslim Professionals (AMP)
Address: 1 Pasir Ris Drive 4 #05-11 Singapore 519457
Tel no.: 6416 3960
E-mail: [email protected]

Arise2Care Community Services
Address: No. 5 Harper Road #02-01A Singapore 369673
Tel no.: 6909 0628
Email: [email protected]

Blessed Grace Social Services
Address: 16 Arumugam Road, #04-02B Block D, LTC Building Singapore 409961
Tel no.: 8428 6377
Email: [email protected]

Credit Counselling Singapore (only when you also have bank loan debts)
Address: 51 Cuppage Road #07-06, Singapore 229469
Tel no.: 6225 5227 / 6338 2663
Email: [email protected]

One Hope Centre
Address: 8 New Industrial Road #04-04B LHK 3 Building Singapore 536200
Tel no.: 6547 1011
Email: [email protected]

Silver Lining Community Services
Address: (East) 11 Playfair Road Singapore, (West) Jurong Spring CC, 8 Jurong West St 52 Singapore 649296
Tel no.: 6749 0400
E-mail: [email protected]

Need help getting out of personal loan debt?

There are many options that can help you get out of a personal loan debt, including consolidating your loans via a debt consolidation plan.

At Prosper Credit, our team will be able to provide you with financial advice on managing your loan and we can customise your debt consolidation plan according to your needs.

Reach out to us today!

 

Disclaimer

While all reasonable efforts are made to include accurate and up-to-date information on this website, errors or omissions may still occur. We are not liable for any loss or damage caused by the use of this website. The information on this website is for general information only and should not be taken as professional advice.

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