Debt Consolidation Singapore: How To Pay Off Multiple Payday Loans

It’s a constant struggle when you have more than one loan to repay — every paycheck goes through rounds and rounds of planning and budgeting, yet sometimes it never seems enough to pay off all your debts.

So, whether you’re borrowing from a bank, financial institution, or legalised money lender in Singapore, we’ve outlined several tips to help you pay off multiple payday loans.

What is a payday loan?

Payday loans are small loans typically taken by those with emergency needs, such as to pay off healthcare bills or other urgent expenses that cannot be delayed.

The loan amount is often capped at the borrower’s one-month salary and has to be repaid within a month, or on the borrower’s next payday. Due to the short repayment period, usually it has a relatively higher interest rate than other types of personal loans.

Managing the high interest and tight repayment period can be challenging, especially if you’ve taken multiple payday loans; which is why it’s all the more important to understand how licensed money lender interest rate in Singapore works.

How to pay off multiple payday loans

1. Create a monthly budget

The first thing you can do is to organise your loans. You can list out when each loan is due and calculate how much to repay each time. There are various tools to help you do so, such as Microsoft Excel.

Having a spreadsheet to refer to can give you greater clarity when it comes to budgeting for your monthly needs. It’s also an efficient way to keep track of your finances. You’ll know how much money from each month’s paycheck can be spent, and how much must be set aside to repay your loans.

If you have trouble keeping track of the various payment due dates, you can set reminders. This can be done using Google calendar to sync up notifications on your electronic devices.

Remember, money lenders enforce late repayment fees that can be costly, so be sure to repay your loans on time to avoid these charges.

2. Take a debt consolidation loan

The term “debt consolidation” may sound strange and unfamiliar to those who’ve never heard of it, but it really refers to the act of consolidating one’s loans. A debt consolidation loan helps you pay off all your outstanding debts, including payday loans.

It combines all the loans you have into a single loan. You only need to make repayments to the one company which you have applied for a debt consolidation loan from.

With a debt consolidation loan, you’re more likely to secure a longer loan tenure and lower interest rate compared to payday loans. You’ll be able to repay your debts at a more comfortable pace, too.

Having your loans consolidated also reduces your chances of forgetting the various repayment dates and details — saving you time and effort altogether. You’re less likely to incur additional charges from missing the payment.

Take better charge of your debts now

If you are having trouble paying off multiple payday loans, you should consider applying for a debt consolidation loan to streamline your debts and minimise your interest charges simultaneously.

Let us know what you need — we offer debt consolidation loans at affordable rates and we can tailor our loans based on your individual requirements.

Apply online with Prosper Credit now.

About the Author

Huiting Yong

Huiting is passionate about all things related to current affairs and the finance industry. With years of experience in tow, you can rest assured that the content she creates will always have an extra insightful touch.