Are You Still Stable? Know the Signs You’re Not

Are You Still Stable? Know the Signs You’re Not

Do you know that a lot of people are not aware they are already in a financial struggle? This could be because they have not been paying attention in the first place. Not all financial problems are so obvious, but a lot of them are. When they happen it’s time for you to reassess your skills in handling money and ask for necessary help.

You cannot make your ends meet.

It’s typical for people to blame the economy with the rising costs of commodities. Hence, it’s a lot harder to manage finances. But there’s also another side of it. It could be you’re wasting your money on things that are really not needed.

Before you conclude your hardship is all about recession check your finances first. How much did you spend for the last few months, say, 3 to 6 months? There’s a very huge chance your savings have been eaten up by unneeded purchases. Once you spot the culprit, redo your budget list, making sure you’re trying to stick to it to a T. If nothing still changes, then put all the blame to worldwide financial meltdown.

You have a bad credit report.

A credit report basically informs you and the lenders of your credit standing. Have you been paying all your debts religiously? What types of accounts do you have? Have you undergone a debt management program? All these questions can be answered by your credit report.

If it tells you you’re not doing well then there are two things you can do. First check the information. Go back to your previous statements. Perhaps the credit card company just missed out one of your repayments because it was late. Then send a dispute to Credit Bureau Singapore. Second, know where you’ve gone wrong. You may have been charging all products and services to your credit card, or you’re always late in repaying your mortgage.

You can no longer pay the bills.

This is perhaps one of the scariest signs you’re in financial trouble. You cannot make your repayments anymore. The repercussions, when this happens, are very serious and huge. For one, this will damage your credibility and credit report. Second, your debt will continue to pile up and earn interest and even late fees.

Sometimes the main reason is you’re stuck with a variable interest rate, and the prevailing one in the market is too high. In this case, it’s time to take a whole new approach. With mortgage you can think of going refinancing. If you’re paying credit cards, ask if you can be given a different due date or they can lower your interest rate (provided you’re a good payee). You can also request for balance transfer (terms and conditions apply).

You’re rejected by lenders.

There are times when your credit applications get rejected. That’s normal. What isn’t is when you are ignored a lot of times. Perhaps it’s time to take a look at your credit standing and your salary. It could be you debt service ratio is too low, which means you still have a huge long-term debt that needs repaying. Your credit report is not good, or your salary is not enough for lenders to feel comfortable of your capacity to pay. The good thing is you can ask the lenders the reason for the rejection. Normally they will say so in a letter. If the reason isn’t stated, feel free to communicate with them. Fixing the wrongs as soon as possible may just improve your chances of getting a loan very soon.

You are already filing for bankruptcy.

One of the worst things that can happen to you because of financial issues is bankruptcy. When you file one, it means you really don’t have the capacity to pay anymore, and creditors have to look for other means to recover their loans from you. The court may repossess your homes and other valuable properties. They may be sold, and the money raised will be used to pay the creditors and to finance the family of the bankrupt individual.

Your bankruptcy record can stay in your credit report for years, and during this time, just when you need the money the most, it’s very difficult for you to get a loan. If you ever do, you have to pay a very high interest rate and settle the loan in a very short period of time.

Singapore offers plenty of opportunities to regain yourself. For one, you can join a debt management program created by credit counselors in the country. You will be taught how to manage your finances; then they can direct you to financial institutions they think can help you. They can also keep track of your progress to ensure you’re not back to your old habits. n{bro

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