Some expatriates living in Singapore have fallen into unfortunate circumstances and have incurred a lot of debt. For many of these foreign workers, waiting for payday may be too long. What often could help them is a loan for a foreigner like them, but where could they find one?
The chance to make it big in countries like Singapore has attracted foreign talent. Often they migrate with the hope of finding a career and expanding their financial prospects. While some may have some degree of success, others have fallen into unfortunate circumstances.
It does not mean, however, that they do not have what it takes to become successful. They may have the proper skillsets, but unfavourable circumstances may have affected how they handled their finances. Using a credit card to help with their living expenses as they wait for payday can become a common occurrence. But they have several options they can take to make themselves more financially stable.
Seek Professional Credit Counseling
The first step towards financial recovery is to seek professional credit counselling. In Singapore, there are non-profit organisations that help people resolve their debts. Many of these counselling groups educate people on effective financial management and how to overcome challenging financial situations. They can also help people come up with a debt repayment plan they can present to their creditors.
Such repayment proposal may be the thing creditors need. Showing creditors how you intend to pay off your debt says a lot about your good intention. This earns you good points from your creditor and enough time to resolve the situation.
Consolidate Your Debt
You can try to combine all your loans and credit card debts in a single fixed monthly repayment. This can lower the risk of missing out payments and allow people to restructure their finances. Some banks offer debt consolidation plans at lower interest rates with longer loan periods. You can ask your credit counsellor where can you avail of debt consolidation programs.
Apply For A Foreigner Loan
You can also apply for a foreigner loan to help you pay off your credit card debts. While it is not good practice to pay off your debt with money from another loan, such can work in your favour in this situation. Consider this. Singapore lending companies offer foreigner loans at a lower interest rate compared to credit cards.
The repayment term of this type of loan can range anywhere from two to five years at a fixed low-interest rate. Securing this loan will allow you to pay off both the interest and principal of your credit card debt. The total amount of the loan depends on the person’s monthly salary, but they can pay off the loan in equal monthly instalments. Although some lending companies have strict rules as regards foreigner loans, there are credit firms which have relatively easy requirements.
There are many problems when you live as an expatriate in another country, including debts and taxes. Fortunately, there are many options available that a foreign resident can take to solve dire financial problems. The trick is learning what you should know as regards the various solutions towards living a debt-free life in Singapore. Once you decide on the best option for you, act on it immediately and do not wait for your current financial situation to worsen.