When the situation gets tight, and you are in dire need of money, we resort to borrowing money from friends, family, banks, and moneylenders. Debts are extremely helpful in critical events. However, without control, loans could spiral into a debt trap. Without the help of a debt consultant, there may be no escape from the rabbit hole.
Here are some debt consultancy tips for getting out of a debt trap:
- Prioritise paying off expensive loans.
What are expensive loans? Expensive loans are debts with higher interest rates, overhead costs, and other fees. Make sure to prioritise these debts. If you fail to pay them off, the fees and rates will pile up, making your debt payment much higher.
2. Live within your budget.
Your expenses must never exceed your income. To pay off your debt, you have to reduce your expenditures. Make some cuts in your budget and prioritise paying off your debt. You can contact your debt consultant for more tips.
3. Try loan consolidation.
Loan consolidation in Singapore is a lower-cost personal loan used to pay your existing debts. Opting for a loan consolidation gives you an opportunity for more flexible payment terms, lower equated monthly instalments (EMI) and interest rates.
4. Look for more sources of income.
If your outstanding debt is still beyond your monthly income, try increasing your income by finding multiple sources. Your salary from part-time jobs and pay from freelance work may be able to cover some of your expenses.
5. Look for professional help.
Debt consultancy firms can help you formulate debt payment strategies, offer you repayment options, advise you about budget and expenditure limits, and connect you to reputable creditors.
Being in a debt trap is mentally and physically taxing. You are slowly taking baby steps towards a debt-free life by applying these tips.
If you want to learn more about debt traps and how to escape them, visit one of the best debt consultancy firms in Singapore, Dept Aid.
