Singapore has numerous financial institutions where people can borrow personal loans. The beauty of these types of loans is that security is not required. They are entirely based on the borrowers’ ability to pay and their integrity. As such, many people have access to the loans, which are easier to secure than other types of loans. Unfortunately, many personal loans in Singapore borrowers never put these funds to proper use, and hence end up paying back money that did not help them. Below are 4 things to not do with a personal loan if you do not want to feel pain when it comes to repaying or get yourself in trouble with your lender:
1. Funding Entertainment
You can borrow a personal loan SG for multiple purposes, including to improve your credit score, pay off credit cards, and finance various expenses such as wedding, birthday, funeral, etc. The list of things you can do with such an unsecured loan is pretty much endless. While nobody will ask you to account for how you spent the money, one thing you should never do with a PL is to entertain yourself or people around you. Never fund liquor and other entertainment expenses with the loan money. It will mess you.
2. Putting the Money to Illegal Use
While the list of things you can do with a personal loan is pretty much endless, it does not include doing illegal activities with the money, such as gambling. If found out, you could be blacklisted and barred from obtaining any financial institution that offers personal loans in Singapore in the future.
3. Funding Non-Urgent Home Improvement Projects
While you are free to cover home improvement costs with a personal loan, from an expert’s point of view, personal loans are not great for such costs. Instead of borrowing money from the bank to repair your flooring, you can save up for a certain period of time for that. Isn’t it better to live with an unpleasant flooring for a year or two while you save up than to put yourself into an unnecessary debt? A low interest personal loan, however, can be great for an emergency home improvement problem that cannot wait such as a roofing problem, etc.
Running for a political office in Singapore can be quite costly. Nonetheless, obtaining financial assistance from donors can be extremely difficult because nobody wants to bet their money on a candidate they are not confident is going to win. To avoid the hassle and stress of pursuing funding from donors, some politicians opt for personal loans SG. Yet having to repay the loan can drain you so much emotionally and financially, especially when you are defeated.
Getting a personal loan in Singapore has never been so easy with numerous financial institutions that are offering PLs with better terms and conditions. As such, it is easy to misuse the funds and end up with lots of disappointments and regrets. Never use a personal loan for liquor, gambling, home improvement projects that are not urgent, or campaigning. Use the money for the right purposes like paying urgent debts and catering for emergency costs.