Everyone knows where the money comes from – it’s where it goes that’s hard to track. The first rule of thumb for a financially sound home is simply this:
Household Income must be greater than Household Expenses
If you find yourself falling behind on your monthly payments, then it’s time to start learning some of the basics of creating a budget.
But when you do break this rule, then you need to borrow money to pay your expenses – that is a short-term strategy that can lead to long-term problems if it happens every month. You might need a pay day loan if you don’t have enough cash to pay everyday expenses like rent, food, and utilities
Or if you live from paycheck to paycheck, the money you make just barely covers the day-to-day expenses, with little or nothing left over for emergencies. In this situation, any unplanned expense – such as a $300 car repair – can cause a financial headache.
Payday loan in Singapore and everywhere in the world appear to offer a way out. You can walk into the office of one of the payday loan in Singapore and walk out half an hour later with $300 in your hand to pay that repair bill. Then, on your next payday, you can come back in to repay that $300 – plus another $45 or so in interest or the pay day loan lender can deduct the amount directly from your bank account.
Before taking out a pay day loan, think carefully about how you’re going to pay it back. Pay day loan is an expensive way to borrow. Never take out a pay day loan unless you’re 100% certain you can repay it on time and in full – otherwise the costs can soon spiral out of control.
The loans are typically viewed as helpful for unexpected bills or emergencies. Even though borrowers complained that they had difficulty repaying the loans, most agreed that the terms of the loans were clear. More than one-third of borrowers say they have been in such a difficult situation that they would take a pay day loan on any terms offered
Pay day loan lenders advertise their loans for every cash flow crisis you can think of. But a pay day loan is likely to be the wrong choice for you if:
- You want to use it to pay off other loans
- You already have one or more pay day loans.
- You aren’t 100% certain you’ll be able to pay it back on time
- You want it to pay for things you don’t need that you can’t afford – such as nights out, new clothes or concert tickets