Notes to Borrowers When Obtaining Loans from Moneylenders

Avoid being Bankrupt.

The inability of an individual or a company to pay its creditors the outstanding loan is called bankruptcy. A creditor may file a bankruptcy petition against a business or corporate debtor  in an effort to get a portion of what they are owed or initiate a restructuring. This is called “involuntary bankruptcy” whereas in “voluntary bankruptcy”, the insolvent debtor initiates the bankruptcy. The aim of the voluntary bankruptcy law is to provide the honest debtor with a fresh start.
Avoiding Bankruptcy
The main reasons for filing can be unforeseen medical expenses, huge credit card debt, loss of employment, and divorce. One should consider all the available options and choose bankruptcy as the last resort. Because it adversely affects your credit rating by bringing down your credit score points.  The negative entry stays on your credit report for a long period of years (up to 20 years). So you will not qualify for new loans for the next 3-4 years. You may lose your home and car. Also you cannot get rid of all kinds of debts and loan through bankruptcy. Taxes, student loans, child support and alimony/spouse support cannot be gotten rid of this way. So do not file bankruptcy to shed off this load.
There can be many alternatives to bankruptcy. But any option should be chosen very carefully so one should end up in a situation worse than bankruptcy. Some options are discussed below:
  1. Out of Court Settlement: You can opt to settle your debt at a reduced amount. There are companies who provide their services to help you negotiate with the creditors. All such proceedings should be handled professionally and properly so that debtor’s credit ratings should not be adversely affected.
  2. Debt Counselling Service: Debt counselling services can be a good option. They can consolidate your monthly payments and obtain payment or interest reduction on your unsecured loan or debts. The only problem is that many people’s financial situation is so bad that they do not qualify for debt counseling as they cannot repay their debt even on better terms.
  3. Debt Consolidation Loans: This is getting more loan against the equity in one’s home to pay off credit card debts. This should also be opted very carefully. Because if you are not able to pay the loan against your home equity, you will end up losing your home which will leave you in a worst position than not being able to pay your credit card debt.
You need to have a plan to restructure your finances and make the most of your future ability to earn multiple incomes to really get out of debt. Typically you can stretch your repayments up to 30% of your monthly income, but if it reaches 50%, better sound the alarm bells as it will definitely get out of hand. A longer tenure means you will be longer in debt. Work a second job or participate in ways to get multiple incomes means you have to go the extra mile and make a tremendous efforts to mobilise you and your family members to achieve your goals. It is up to your mind to what you can achieve, rather than being brought down by your debt and declare bankruptcy where it is a road of no return, your OA can refuse to discharge your bankruptcy for up to 20 years, which means it is 20 years of suffering. Seek help from a financial planner or a debt counselling service if you are not financially savvy. Once you have an objective stick to your goals and in time to come you would have repaid all your debts. 
2012 will be the year I am getting out of my bankruptcy since 2005, which has caused me tremendous hardship and pain, without the help of my relatives or friends, I will prove to the world what I am capable of, by showcasing all my talents and my drive, by overcoming the impossible odds, by finding happiness all over again, if I can do it, there is hope for the less fortunate.

Tips to note to keep your cost of living down to earth

1) It is better to rent rather than buy your own property, unless there is a potential of ;
a)Capital appreciation of asset values 
b)Regular income of rental returns 
c)Sinking funds or potential of redevelopment
d)Ability to derive higher income thru change of use eg commercial property
Do your own research and do not depend on marketing heresay, cause nobody will feed you if they can earn the money themselves, always remember that if a deal is too good to be true, it most likely is and so it is better to walk away rather than get struck with an illiquid asset.

2) Investing in a car most will tell you is a stupid move because it is a depreciating asset class. But with limited supply and the high costs of COEs, you may end up losing nothing but the free use of the car for a couple of years if you play your cards right, and if it helps you in your business to earn more money, as “Time is money”, it might be the right move for you but not for others.

3) Telcos nowadays will always encourage you to sign up for a plan for your mobile communication needs and most users do not know the real costs until they receive the bill at the end of the month. To control your costs especially with a data plan, it might be wiser to opt for a prepaid plan instead of a regular plan as all charges need to be paid in advance, especially the recent news of a subscriber who was charged nearly S$350K for data roaming while holidaying in Taiwan. As a Singtel prepaid subscriber, there is a “Bonus $30” plan where you only pay S$15(50% discount) where it is sufficient to cover your monthly communication needs if you are not a heavy user. 
If you regularly make overseas calls you can lower it by using Skype which charges as low as 5cents per minute for most destinations, and is free if it is a Skype to Skype call. Be aware that most Telcos have a special number to dial for overseas calls to lower your costs by more than 50% like “Global121″ and”019” for Singtel etc.

4) Stay near a Hawker Food centre where you can get your daily meals under $3 per meal especially if your family doesn’t cook and you need to have your meals outside for convenience, for the total bill at the end of the month will really set you back by hundreds if you do not control your costs. By buying your groceries from a supermarket that offers the lowest costs can also help you to save money especially times are really bad and you need to stretch your hard earned dollar.

5) A Healthy Lifestyle with proper exercise will help you get an active lifestyle and prevent sicknesses that will add to your future hospitalisation bills, and everyone knows how expensive is healthcare in Singapore once you fall sick. Setting aside a little money every month is the best option of controlling your future healthcare bill by investing in an insurance policy in times of needs,  other than investing in an education to furthur your future earning potential. 

– Contributed by Oogle.



3)电信运营商如今将永远鼓励您注册为您的移动通信需求的计划,大多数用户不知道的真实成本,直到他们收到在本月底的法案。为了控制成本,尤其是同一个数据计划,这可能是明智的选择一个预付的计划,而不是一个普通的计划,所有收费须提前支付,特别是最近的新闻订户被控近新元350K数据漫游服务,同时在台湾度假。作为新加坡电信预付费用户,是一个“奖金$ 30”计划,您只需支付15新元(50%的折扣),足以支付你每月的通信需求,如果你是不是一个沉重的用户。


– 提供者Oogle。

Author: Gilbert Tan TS

IT expert with more than 20 years experience in Multiple OS, Security, Data & Internet , Interests include AI and Big Data, Internet and multimedia. An experienced Real Estate agent, Insurance agent, and a Futures trader. I am capable of finding any answers in the world you want as long as there are reports available online for me to do my own research to bring you closest to all the unsolved mysteries in this world, because I can find all the paths to the Truth, and what the Future holds. All I need is to observe, test and probe to research on anything I want, what you need to do will take months to achieve, all I need is a few hours.​

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