8 Ways to Get Out of Personal Loan Debt

8 Ways to Get Out of Personal Loan Debt

QUICK JUMP TO...

QUICK JUMP TO...

toc-icon
Man pushing debt down cliffside, learning how to get out of a personal loan debt
Man pushing debt down cliffside, learning how to get out of a personal loan debt

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

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

Read on to find out.

1. Pay more than the minimum required amount for every instalment

To clear 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 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 it causes 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 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. Typically, you also get to repay your loan at lower interest rates with manageable instalments.

Having just one repayment deadline helps you manage your time and resources better so you can clear off your debt more efficiently.

4. Budget well and set aside a fixed repayment amount

Being financially secure 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, set aside the repayment amount first (even if the repayment deadline is not on payday) before using the rest for expenses and savings.

This ensures you 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. Registered money lenders will usually send reminders but just in case, it is better to set your own.

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

6. Save instead of splurge

Saving is key! Resist the temptation to splurge on your payday and set aside a fixed amount for your expenses including loan repayments. Having an emergency fund is also 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 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 (point 11):

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 for 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]

Prosper Credit's contact us button

 

About the Author
prosper credit logo

Known for our professional, customer-centric approach since 2010, you can rely on Prosper Credit’s proficiency in the moneylending industry whenever you need to find out more about loans and topics closely related to loans.

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.

RELATED POSTS