Life is full of the unexpected. It is therefore not a surprise when you take a personal loanand find that you are about to default on the monthly payment. The question in your mind at that moment will be ‘What can I do now?’ The following steps will help you prevent a difficult situation.
Step 1: Contact the moneylender
When you realize that you are not going to be able to repay your loan, contact your lender. This is probably the last thing that many people will think of doing. They would rather turn off their phone and ignore the reminders. It is however, the first and most important step. You should notify the Singapore moneylender that you won’t be able to make that month’s payment.
This is important to prevent further charges on your loan. Moneylenders can charge you fees for bounced cheques, failed GIRO account transfers or failure to make your monthly repayment on your loan. Ensuring that they are aware of your situation buys you some time.
Step 2: Negotiate for new terms
Have a chat with your personal loan officer on your options. Make your situation clear to him. Remember that he is human too and faces similar financial problems. You should also remember that the moneylender would want you to repay the loan. This lending institution is in the business to make a profit and will need you to repay the loan in order to do that. The lender will therefore be willing to renegotiate your loan contract to ensure that you are able to repay your loan.
Step 3: Cut down on any unnecessary expenses
Cut down on any expenses that you can do without so that you can get back on the right track. You should work towards ensuring that you can meet the terms of the new contract. After all, it costs money to have the Singapore moneylender change the loan contract. You should therefore strive to adhere to the new terms and conditions.
Step 4: Consider debt consolidation
If you have multiple debts, consider consolidation. This will mean combining all your debts into one large debt and paying back only a single loan. Talk to your moneylenderabout the possibility of taking a Singapore personal loanto pay off the smaller debts and allow you to pay back a single larger loan at a lower interest rate.
About Credit 21 Pte Ltd
Credit 21 Pte Ltd is a professional and fully licensed moneylending company based in Singapore. We have been approved by the Registry of Moneylenders (IPTO) to provide loan and moneylending services in the country. We provide loans to Singapore residents, PRs and foreigners who hold valid Singapore employment passes.