How to Deal with Loan Shark Harassment in Singapore
Singapore is considered the world’s busiest port and a top location for business investments. Some reasons that have made it such a renowned business hub are its strategic location, friendly economic policies, and a pro-business city. This has made many investors step in and look for thriving businesses. And whenever there are business prospects, financial organizations grow in large numbers. It has attracted many financial institutions, including banks and money lenders. However, not all these institutions are genuine about lending loans to business owners or employees looking forward to improving their financial status. There are Loan Sharks who operate as money lenders but end up leaving borrowers frustrated and, in the end, paying a lumpsum amount of interest rates. How to Know If You are Dealing with a Loan Shark in Singapore You need to note that the Ministry of Law in Singapore has defined the duties and requirements for any licensed money lender. If you find any of these signs, you should know that you are dealing with a loan shark. They use the Wrong Channels of Advertisement. Loan sharks use SMs, Emails, or Flyers for advertising themselves, which is against the law requirements. A licensed moneylender uses an Official website, and they have a physical office or business directories. They will be comfortable to invite you to their office as opposed to loan sharks who are briefcase lenders. Loan Sharks Charge High-InterestRates. The law in Singapore enforces a maximum of 4% on interest per annum. However, loan sharks go beyond this with a promise of offering fast loan disbursements. Desperate borrowers often fall prey to this because f such lucrative deals, but they end up suffering when making their monthly repayments. In case of late repayment, some charge as much as $60 on late repayment fees, which is much higher than the standard rates. This should not be the case since many reputable licensed moneylenders will offer better services and low-interest rates. If you are looking for a good company, research widely and get reviews from friends, or check the feedback reviews from the company’s website. Loan Sharks do Not Sign Contracts They hardly draft contracts but instead coarse the borrower to receive money through texts. By doing this, they are sure that they are at liberty to charge exorbitant interest rates. Should they have the contract, they make sure that critical Information is missing, such as lack of the borrower’s rights and obligations, missing interest rates, and they make sure that the borrower does not retain a copy. How to Deal with the Loan Sharks in the event you encounter these Signs. It is never the right thing to work with a loan shark, and if you sense any of these signs, here are some tips to employ and get out of the Trap. Confirm that the Ministry of Law duly licenses them in Singapore You can do this by visiting the ministries website, where you get a list of all licensed moneylenders. Avoid opening any links provided by them, but if you miss them on the ministry website, do not confront them but get away from walking out and search for a legitimate provider. Lodge a complaint to the Police Calling the Police is the safest thing to do. Find the nearest police station and report the Information. If you feel insecure about going out, use the police hotlines, for instance, 999, and they will respond for your safety. It is important to do this immediately to avoid the cartels from progressing and damaging the reputation of licensed moneylenders in Singapore, yet they provide genuine services. Do not Submit to the Loan Sharks Threats. In case they sense that you have realized that they are not genuine money lenders, they can impose threats on you to pull you down. Do not give in to their threats. For instance, they could threaten you by forcing huge interest payments, use abusive language, or even threaten you at your place of work. They could also vandalize your house with unrealistic tags or even shame you publicly. Even if you have failed to pay an installment, do not bow to their threats; rather, wait for the authorities to deal with them.’ Stop making any Further Payments. It is illegal to pay loan sharks money after realizing that you are dealing with illegal entities. Genuine money lenders charge a maximum of 4% in interest rates annually. Even if they threaten you that they will report to the Police, stand on your grounds. They can never report to the Police. This will benefit other unknowing customers because they will eventually lack monies to pay out to unsuspecting borrowers. Do not disclose any Further Personal Information. Loan Sharks ask for your personal information, such as the Sing Pass. Do not disclose such Information. If you shared the Information, change your password immediately as this can be used for illegal activities. The loan sharks might use the Information to harass you and eventually recover the monies and more if you had stopped paying. What is the Government’s Stand on I Loan Sharks Loan sharks are considered illegal money lenders. If you fall into prey and do not report, you will be fined up to $300,000 or spend four years in prison. How to Deal with Your Debts It is human to feel discouraged that you went through an illegal process. However, this should not deter you from proceeding in your financial management. Research the right licensed moneylenders that will offer quality and work with them. One reputable company that has been in operation for many years is SGP Credit. This legitimate licensed money lender will offer quality service from disbursement to repayment. Our staff are qualified and will take you to step by step till you sign a contract with us. If you still feel disturbed about the experience, contacting a Credit Counselling Singapore service will help you overcome the ordeal and move on with life peacefully.
6 Tips to Manage Your Finances and Get Them Under Control
Finances can be one of the most significant challenges to manage. But with a proper mindset, one can always look for a strategy to ensure that they are well organized, and you do not have to seek friends’ support before payday. COVID 19 disease taught the whole world a lot of things. When the economies crushed, restriction on movement worldwide was put in place, and there was little or no money coming in during that critical period. Fortunately, for those people who had clear strategies, they were able to re-organize themselves, awaiting the rise of the economies. With this experience, we came up with 6tipsto help manage your finances and get them under control. We have shared each of them and hope this will be a turning point from your empty pockets to a strategically controlled person in terms of finances. Create a Monthly Budget. If you struggle to manage your monthly spending, it is essential to devise a budget and plan how you spend every month. To start you off budgeting, analyze your monthly income (the takeaway figure) and the expenses. Allocate the compulsory costs that must be paid to avoid inconveniences such as electricity bills, food, water,and transport. There are some expenses you can opt to shelve or reduce because they are unnecessary, and you can live without them.’ Setting up a realistic budget will encourage you to practice good saving habits such as eating from home and carrying home food for lunch. This is one of the best strategies that have been tried and tested and become successful. Pay Off Debts. Debts are real luggage we all carry, thinking they are sorting our financial problems. But if you critically check the extent that they use the better part of your salary, it is something that you would consider paying off. Most of these debts, such as credit cards, carry heavy interest rates leading to misappropriation of your finances. If possible, pay off such debts as soon as possible. This can be done by working with a financial institution that offers a lower interest rate by consolidating such debts andremaining with one. There are several financial institutions, including banks and licensed moneylenders. In Singapore, licensed moneylenders are known for giving manageable interest rates that could help you pay off heavy debts. One of the reputable companies is SGP credit. It is possible to reduce your debt using the moneylender by requesting them to give you a lower interest rate as you consolidate your debts. Come up with Realistic Financial Goals. A financial goal is a strategy or rather a personal overview of the objectives that you want to set up on how you will spend or save your money. If you are pretty sure that you want to manage your finances and take control of them, then setting up a financial goal is not optional. If, for instance, if you wish to take a mortgage in the next oneyear, plan on how this mortgage will be repaid. Is your income sufficient enough to cater for such a goal? If not, think about getting an extra source of income that will supplement the income that will be used to pay the mortgage, On the other hand, research the financial institutions that will offer you the right support for your goals, whether in your saving or borrowing culture. Setting goals straight from the word will give you a different focus and work with what you have to achieve your dreams. Choose the Right Financial Institution to Open an Account With. Opening the right bank account is critical because it will offer financial advice for borrowing and developing a savings culture. We all do not know what life holds for tomorrow. What if there will be another lockdown in the next year? Will you have a savings fund to manage the situation? What about emergency medical bills? All these questions can be rightfully answered after knowing how well you are conversant with your bank account. Setting up a savings fund or an investment account is necessary to help you in times of crisis. On the same note, not all banks are out to see you rise; some have hidden charges that, if not well advised, your savings will go down with the hidden costs. Therefore, research well before settling for a bank account. Avoid using Your Credit Cards. Relying too much on credit cards can make one a slave to their finances. You may find like credit cards are a saviour and act as a stop-gap measure, but this is only temporally, which will affect your finances in the long run. If you have made up your mind about taking control of your finances, keep off spending with credit cards and possibly switch to debit cards which you can only use when you have loaded your account with cash. You can open a savings account and apply for a debit card from which you can draw your monthly expenses, pay your bills, or even save for retirement from the kitty. Developing such discipline is necessary, and in a short while, you’ll manage to control your expenses. Get to Know your Credit Score. A credit score is a number that depicts your credit worthiness. Companiesin charge, such as TransUnion, determine this to measure your discipline in paying off debts. It is a three-digitnumber that starts from 300-850. The bigger the number, the better your credit score. Those with high credit scores get lower interest rates from reputable financial organizations. Eventually, their monthly repayment will be lower than those with lower credit scores. Keep checking your credit report, report any errors, and prevent any future mistakes that could lower your credit score. Conclusion Taking control is not a difficult assignment, but the motivation to start from within must begin with you. Remember that small financial indiscipline has a long-term negative effect. Therefore, take control of your finances by putting the mentioned points into practice and start flourishing within a short period.