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How To Live On Credit Without Falling Into Debt

When you hold a rather decent salary yet you still have lots of loans. Even then owing to some reason it is not possible for you to repay all debt on time. From this, it is possible for you to be curious where all your money goes. You may even want to know the reason why you seem to always not have enough money.

Usually every month end.

It could be that you are even wondering what might be wrong with you. Below are several possible answers why that is so.

Ask For Assistance

There are several ways for you to use up your money. Several of them might make you rich and happy. This is despite having average wages. Also, others could lead to your spiraling in debt thus making you feel rather poor.

Even then it is not late for you to change how you manage your finances. When you know that you are not able to do it by yourself. It may be a good idea to work with a debt counselor. From that ensure that you follow the advice they offer you.

Therefore, seeking for assistance may not be something you have to be ashamed about.

Having Lots Of Debt

It is possible for the average middle-class Singaporean who has healthy finances. For them to hold a mortgage, a personal loan, a car loan. They may even have several credit cards. Yet they will not have some serious debt or financial problems.

This is even when their total debt adds up to several thousand dollars. But, when you hold three credit cards, a personal loan, and several moneylender loans. It can get you in some serious trouble.

This is regardless of the fact that the whole debt could be of few thousand dollars. This can happen under the following circumstances.


Though your salary is a modest one. It may not be possible for you to enjoy all pleasures in life. With this, you only have to be cautious with the financial decisions. You also need to be willing to make some compromises. More so when you still are not financially healthy as you want to be.

Meeting with friends: Although socializing is crucial and you can afford dinners out. That is once or twice a month. Be sure to select the most pricey restaurant. But instead, consider a middle-class spot. A place where you as well as your friends can enjoy time with you.

Holidays: it is possible for you to go on holiday without having to go bankrupt. In Singapore, you can access many travel agencies that offer holidays anywhere in the world. Once you choose your destination of choice. Make sure that you chose a place that the budget will make available. When the offer is beyond your working budget. It may be a good idea to try to plan your trip on your own.

Given that your employer has just given you a bonus. However, you wish to buy purchase extravagant item. This can be something like an expensive watch. Though this is one option, you also have other more sound ways to utilize your bonus.

When you have existing debt, it may be a good idea to use some of the bonus on debt. Then buy something much smaller for yourself. Settling your debts can make you happy for the long term. Defaulting on your debt will affect you.


Owning an older car which might break down at any time. It could put you in lots of financial issues due to the high repair and maintenance costs.

Below are several things you need to think about:

Look at the amount you are spending each month/year in your car. Look at both the insurance cost, vehicle price, taxes, fuel, and maintenance (including repairs) costs. Then look at some offers on new cars. The new vehicle will certainly be more pricey than the old car. However, it could prove to be more fuel-efficient. Thus save on all fuel expenses as well as eco-taxes. You will also forget about repair costs for the first three to five years due to the warranty.

To help finance your car expenses, a better choice would be using a personal loan. This you secure using your car that will attract a much lower rate. The result of defaulting are you losing the car. This is much acceptable instead of getting into endless debt.


Most Singaporeans are really frightened of credit. Even when they have stable salaries. They would prefer to save for many years for them to have the money for a home. This is rather than buying a house using a mortgage.

Even then, saving for years may not be very effective. Most people spend their entire lives renting rather than purchasing a home. The mortgage is among the good loan – this is the kind of investment which will pay off at some point.

By renting there is another big drawback. When you have trouble paying rent punctually. It could be a good idea to want to take out a personal loan. You will still have loans but many expensive yet less efficient loans than the mortgage.

In Singapore, you have many options to fund your housing requirements. Some of these loans will improve your finances in the end. Yet others will get you in more high-interest credit. That literally “eats away” your savings and income.

Moneylenders and Credit cards

This will help you improve your lifestyle and relieve you of lots of stress. However, only when they are utilized responsibly. You could consider following this rule: only spend the amount that you can pay off.

Credit cards normally offer the interest-free payment option. This typically in 30 -45 days. Therefore just repay the loan once you get your next wages. However, this is not advisable to use the credit cards to settle expenses that you cannot cover. This is for the short term since the rates could be rather high.

Personal loans from licensed moneylenders are the reasonable option in some instances. Remember that as pertains moneylender loans and credit cards. The late payments will get you into the real financial problem.

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