Everyone hopes to have some funds in place to cater for emergencies lest they happen. But with the emergence of many licensed moneylenders in Singapore, who offer borrowers short-term loans to cater to their short-term financial obligations, one should not be worried in the event that they do not have an emergency fund in place.
What is an Emergency Fund?
This refers to a sum of money set aside to cater for incidents that may take place, such as accidents, abrupt loss of jobs, or even a sudden injury. It is equally important to have such money kept aside to cater for a rainy day. It’s also important because it gives one confidence that in case of any issue taking place, that person will be at peace knowing that they can only rush to the bank, withdraw, and close on the huddles in place. As such, one does not have to turn to loans for financial assistance.
But on the other hand, if you are confused about going for that emergency fund or getting a cash loan, read on and make an informed decision.
1. Evaluate if the Loan is an Emergency
The first assessment to make is to ask yourself whether the loan you intend to take is an emergency. Let’s take an example where your house caught fire, and most of the walls fell. In such a case, taking a renovation loan can be treated as an emergency and is worth considering, taking a cash loan in Singapore.
But in the event that you need a personal car to drive you to work, this may not be treated as an emergency, and it is not worth applying for a cash loan in Singapore. Remember, the car will need other maintenance costs, which will eat into your income, and you could use other means to get to work.
2. Confirm How Much You Will Lose by Taking a Cash Loan
E When people decide to put some money aside as an emergency fund, they do so by putting it in a fixed deposit account or in a salary savings account. There are several terms and conditions that are attached to such savings. For instance, for you to earn interest, you have to wait till the maturity of the deposit if you want to earn the interest attached to it. This makes it hard to access this money, and you can evaluate the extent of the amount you would lose if you break the contract. In any case, if the amount is negligible, then you can consider forfeiting the interest and using it for your emergencies. If the reverse is true, then it is worth taking a cash loan in Singapore. Remember, licensed money lenders offer these loans within a short time, and on the same note, the interest repayment schedule is always something you can negotiate with the moneylender in question.
If we take an example of Online Credit, it is one of the reputable moneylenders in Singapore that will offer fast, efficient, and customer-tailored loans. Besides, it is a licensed moneylender that has fulfilled all the government regulations, and the borrower does not need to worry that it may be a scam company.
3. The Domino Effect
If you are the kind of person who will rush for your emergency fund every time an emergency occurs, then it may not make sense to have it in the first place. It will even affect the holder psychologically with a sense that they do not have discipline for their funds. To avoid all this mockery, going for a quick cash loan in Singapore would be a better idea, as it will build a culture of making the repayments faithfully.
4. How Disciplined are You?
You also need to evaluate the level of discipline you have in matters of taking loans. It’s imperative to know that a loan is not a leisure activity, and it demands discipline, honoring of your loan repayment obligations, despite your financial crisis.
This can only be done through practical learning. It’s all about taking a loan and repaying it as you build self-discipline and build your credit rating as well.
It’s important to know that if you decide to dip into your emergency fund, then this is a possible lack of discipline in financial management and may lead to messing up your future financial discipline in terms of savings. The domino effect is compromised.
Why Singaporeans opt to use their Emergency Funds
There are several reasons why people in Singapore choose to use their emergency funds compared to Cash Loans in Singapore. Some of these reasons include;
- The fund does not have interest: The fact that it is your own money does not carry interest with it, and as such, one may opt to forfeit any interest the fund may earn in relation to what they could pay out as the loan interest.
- It is instant- If you compare the time taken to make a decision and apply for a cash loan, one would opt to withdraw their emergency funds.
- No checking on the credit Scores– When using your funds, nobody will care about checking your credit scores. This might be a challenge when making a loan application.
- Used when it is necessary– Buying a dress to match that expensive bag is absolutely negligible. Ask yourself, how important is this expense? If you live without it, avoid using your savings for a how off.
Is it important to build your Emergency Fund?
It is necessary to have an emergency fund in place. But you need a plan of events to build the same. This is how you can build an emergency fund that will support you in times of emergency and avoid getting cash loans in Singapore if you don’t need.
- Have a budget in place
- Be open to other sources of income
- Always separate your normal savings account from your emergency fund account.
Finally
It can be the best decision to get a cash loan in Singapore, as you save on your emergency funds. Working with the right licensed money lender in Singapore will offer you the best quick cash loan in Singapore, and at Online Credit, we will carry out the assessment and approve your loan application within minutes.
Your credit rating should not be a challenge to you. We will support you when yours are bad, as opposed to the traditional banks, which will not even think about your needs.
Make that decision and apply for a cash loan with us at Online Credit.
