Quick Cash Loans
Paying off existing loans is an overwhelming task for many Singapore citizens, especially those with several loans hanging by their necks. A fast cash loan is a short-term loan that usually comes with high-interest rates. Most quick loans are payable within 30 days upon receiving, often before the recipient gets their next monthly paycheck.
Most quick loans in Singapore are unsecured and do not require any collateral. They are specifically designed for those with low credit scores and, therefore, limited access to traditional debts. It is easy to qualify for a quick loan than a consolidation loan. All you need is a valid identification card, an active bank account, and proof of employment.
The Quick Cash Loan Cycle
One reality about fast cash loan is that they are taken to rescue short-term cash emergencies before you can receive your next paycheck. It happens when borrowers struggle to raise the amount of required cash before the due date. They are forced to roll over the loans with new terms.
The majority of borrowers who survive with the quick cash loans regularly renew their loan before the due date to avoid the lender from charging them additional late penalties. Even though quick cash loan is easy to acquire, they are expensive compared to debt consolidation loans.
Debt Consolidation Loans
Combining all your loans into one monthly payment under one interest rate is what debt consolidation loansare all about. Such services are offered through banking institutions and credit unions. The main focus of debt consolidation loans is using a single loan to pay off all your current bills and debts.
In some cases, consolidating loans results in the low total monthly payment and a flat average interest rate. However, the long-term cost of the loan will end up eating these savings. Unlike quick cash loans, most consolidation loans have collaterals. Other ways of consolidating your loan include home equity, balance transfer credit cards, and debt management plan.
Why You Need A Debt Consolidation Loan
– You will have only one fixed monthly repayment towards your licensed moneylender
– You will have a lower monthly repayment amount which leads to more cash flow at hand
– Consolidation loan interest rates are lower
Demerits of A Debt Consolidation Loan
– Once the loans have changed to the lender, your credit card will read a considerable amount which is tempting for the user
– In failure to pay a consolidation loan, you risk losing the property attached to it
– You will be longer in debt since the payback period is stretched to a more extended period
While a quick cash loan is a good idea for an emergency financial crisis, it is never a good option for anyone looking for a loan. They are expensive, and they end up taking you to a more profound financial crisis. If you have collateral under your disposal, a debt consolidation loan is a better way of dealing with your debts. Carefully review the two options to determine which one of the two suits you.