Things to Do If you cannot pay Loan to Money Lender Singapore

At certain points in our lives, some of us struggle with money. In these circumstances, borrowing money from licensed Money Lender Singapore or from banks would be one of your alternatives to assist you get back on your feet. You must of course pay back loans within certain deadlines whether you take a loan or a registered money lender. The ability of borrowers to repay loans may occasionally be impacted by certain circumstances. Then, what happens? What happens if you are unable to repay your loan? What are your alternatives?

Before we get into such topics, let's first look at the crucial actions you should do after receiving a personal loan from a Singaporean licensed lender.

Make sure the licensed Money Lender Singapore provides you with a written explanation of the loan's terms of service before you sign anywhere. This is required by law for all registered money lenders in Singapore. Additionally, the licensed money lender is obligated by law to give you a cautionary statement warning of illegal behavior by some money lenders and indicating where you can file a complaint if necessary. Get a copy of the loan agreement so you have it for reference and storage. Additionally, make your repayments on time to prevent any late payment penalties, and save the receipt for each payment you make.

It's not the end of the world if you can't pay back your debt. You still have options to defend yourself in court or at the very least make things simpler for yourself.

1. Bargaining with the authorised money lender

Talking with your licensed Money Lender Singapore about the potential for an extension or a refinancing plan is a fantastic option. But keep in mind that you could have to pay more. Licensed money lenders in Singapore can be amenable to such conversations if you show that you're serious about repaying the loan.

2. Steer clear of using credit cards to settle your debt

It's not a good idea to use your credit card to pay off your debts. You shouldn't take the chance of falling into credit card debt, particularly if you won't be able to pay off the entire sum at the end of the month and still have to pay the high interest rates credit cards frequently carry. You could find it more challenging to repay your debt under such a plan.

3. Seek aid from social service organisations

By receiving the appropriate counsel, you may assist in paying off your debts as well. In Singapore, there are social agencies that may give you financial management guidance and assist with setting up loan payback a plans.

4. Sign up for the debt repayment programmer (DRS)

If you have debts of at least S$15,000 and are unable to pay them back, you may voluntarily file for bankruptcy. This is typically thought of as the last option. Following that, the accrual of interest charges will be stopped. Additionally, licensed Money Lender Singapore cannot initiate legal action until you have received a bankruptcy discharge. The Debt Repayment Scheme, however, is an alternative to filing for bankruptcy (DRS). A court order is required before creditors may take any legal action against you under the DRS. After then; you'll have to pay back your obligations to the creditors over time.

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