Facing money problems one after another may push you to get more than one personal loan or having to many credit cards may encourage you to use several not knowing that it may put you in a mismanaged financial situation or worse, not being able to pay some of them at all. When financial problems like this come your way, one of the best solutions is for you to consolidate all or some of your debt into one. But, the irony of this is you would have to find the best moneylender in singapore who will be able to give a loan that will be enough to consolidate some of your debts and at the same time give one with a low or at least manageable interest rate. There are things that you should consider before borrowing money to consolidate your debts.
Good Credit Score and Debt Inventory
Again, you need to borrow money to consolidate your debt and you can only borrow again if your credit rating or score is still good. Before looking for a low interest loan to consolidate your debt, make sure your credit score is still within the limit of lenders because if your credit rating has gone down due to of your accumulated debts, then getting a low interest personal loan may be difficult. You can borrow from lenders who provide money to individuals with bad credit but this will be like putting out a fire with gasoline. In the event that you are able to get a low interest loan your next step is to come out with a list of all debts that you would want consolidated. Select those that have high interest because these are the ones that will give money problems later on.
When Your Selected Loans are Finally Consolidated
When you get the loan, immediately pay off the debts that you have selected. Your Final step is to see whether you can still come up with some surplus. This is to add to the monthly amortization that you are paying allowing you to pay off your loan at the soonest possible time.