It may come as a surprise to you when you find that many Singaporeans don’t take out personal loans because they require the cash. If you are terrified of taking out loans then you don’t need to worry, many Singaporean are too.

Most people in Singapore are raised in a society where they are taught that it’s bad to take out loans. However, making use of personal loans issued by moneylenders in Singapore is a powerful tool for improving your lives. Provided you use them in a responsible way.

Below are several ways that you can use personal loans for good results.

1. For Consolidating Your Debts

When you owe money on several credit cards, this is one trick that you can use to help you repay them all in one go using a personal loan. Once done, it will let you replace all your credit card loans that attract high-interest with one, lower rate personal loan.

You are also able to do this using a balance transfer (this is an option for you to transfer your debt from one of your credit cards to another). However, when for any reason you would prefer not to, like not wanting to get yourself on a new credit card, taking out a personal loan can come in handy as well.

2. To Help Out Friends And Family

It can happen that now and then, your friends and family need some help. This might be for some medical reasons, being retrenched, somebody losing their home etc. As a way out, you may think about getting a personal loan for the medical emergencies as well as other urgent needs.

Do make sure you get one that will have convenient repayments (such as S$100 or even S$200 each month). And then pass the money from your loan to the needy friend or relative. This method is a lot safer than giving them a huge sum from your life savings, and particularly when there is a possibility that they are not able to refund you.

3. To Help Keep Safe Levels Of Your Funds When Making Big Purchases

Given that you have saved an amount of S$10,000 with the intention of taking a month-long, big holiday abroad. Well done! However, you will have to think twice whether to pay it all at once, even though you could. One to remember is that if you spend the entire amount of $10,000, and then you do not have earnings for the month at that time you will be off. One emergency may actually ruin your whole vacation (such as losing the entire amount in a robbery).

With this in mind, you may want to think about taking out a personal loan of S$10,000 amount (even though you already have the money), and then regularly repaying it in amounts of several hundred dollars, for a period of 1-2 years. In so doing, you will ensure that you have money to handle emergencies, as well as be able to enjoy your vacation.

4. To Avoid Charges On Credit Card Advances And High-Interests

Most times it happens that when some individuals urgently need some cash, they tend to at times activate their cash advance facility on their credit cards for them to access a quick loan. However, taking the time to compare the interest rates shows that you will be getting much lower interests when you use a personal loan as compared to the credit card.

In addition, credit cards will charge you a 6% as cash advance fee on the amount withdrawn or S$15 –depending on the amount that is higher. In contrast, personal loans will not charge you any up-front costs at all.

5. Helps Avoid Making claims For Insurance

From time to time, insurance policies do give out bonuses when you do not file any claims for a specific set period of time. In addition, there is a moratorium insurance that kicks in only when a policyholder does not make some claims for a period of 5 years. Under these conditions, a number of people choose to use personal loans to help them make repayments without making a claim. This, in turn, helps them retain any bonuses or discounts on the insurance policy, and also not leave them flat broke.

6. It’s Great For Wedding Rings Purchases

The last thing you would like to do is paying for a wedding ring using your credit card (except when you have sufficient funds to reimburse it all before the following billing cycle). Since it carries a 24% interest rate per year, a credit card can drag you into debt during an important time of your life. Instead, consider taking out a personal instalment loan that comes with a low interest (often between 6 to 8% a year) to purchase it. also note that during periods of promotions, you could even get 0% interest loans, that will charge you zero interest for a period of between 3-6 months.

7. To Help Cover Up For Late Payments

When it happens that your employer pays you late, you need to follow it up with Singapore’s Manpower Ministry. However, these complaints won’t change the reality that, at this given period of time, you will still be broke and in need of money.

This is particularly true for individuals who are self-employed. When you are a freelancer, or maybe run your own company you sometimes are faced with clients who pay late. A moneylender personal loan can help you cover your crucial bills (phone bills, power, mortgage, etc.) awaiting your employer to sorts out the accounting issues.

8. To Help When The Reno Loans Run Out

It is important that you recognize that a cap of S$50,000 is set on renovation loans. At times this is not enough, or even something goes amiss and your interior designer works above budget. Taking out a personal loan for home renovation may be a better choice, as compared to leaving the kitchen half done. But you need to be careful – and probably you are overspending if S$50,000 isn’t enough to take care of furnishings.