Debt Free in Singapore | Get Rid of Credit Card Debts
Credit Cards
by Priyadarshini
5 March 2021
No one says it aloud but deep inside there many of us who have accumulated credit card debt. Well, credit cards are one such thing that gives you the illusion of being rich. And because of this many people make the mistake of spending beyond their financial capacity. In turn making, they struggle with bad debt. And since credit cards come with a high-interest rate, it takes a short time to snowball into huge debts. In this blog, we tell you four ways to be debt free in Singapore.
How Long Will It Take You?
It is common for Singaporeans to get mired in bad debts and find them in difficult spots. Now, this may happen because of carelessness or overspending all the time. For you to be debt free in Singapore, make sure you take the smart route. You need to calculate how long it will take you to be completely free of debt. Keep in mind the interest your bank is charging you and add it to the amount at the end of each month. In this way, you will always have an idea of the outstanding amount you need to pay.
Find Alternate/ Second Income Source
You may be prepared to live like a monk but that may not be enough always. So, does that mean you don’t get to have a debt free life? No, if you figure out that your income is not enough to clear the outstanding amount even after you decide to live frugally. Then you have to think of other options. For instance, try and find out the second source of income like a tuition job, any part-time job, etc. And you can make some extra buck from it. Your income plus the second job’s earning will help you with enough to sustain yourself and also clear the debt.
Change your Lifestyle Drastically if need be
Cut back on unnecessary expenses and stick to the repayment plan you have come what may! This will need you to separate between your needs and wants and stick to those expenditures only which fall under the need category. This time of your repayment phase will be tough, intense but short if you want it to be. Save up as much as you can and clear off the debt soon rather than paying small amounts and keep worrying for a long time.
Credit Counselling
Finally, to be completely debt free in Singapore, you can opt for credit counseling. Credit Counselling is a registered charity here in the country. And they can help with counseling you on the best possible solution to get rid of your debt. For instance, how to change your lifestyle, make suitable debt repayment plans according to your income, etc. Don’t worry, they will keep your personal information totally confidential. So, no harm in trying! Although, when you succeed with clearing up the debt, you may want to share your tips & tricks for others to get inspired.
