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Marriage With Credit: ‘Till Debt Do We Part?

Whether you like it or not, along with your marital vows comes the union of your finances. Your partner’s financial habits can either boost or ruin your financial future especially if he or she has a pile of debt. One’s credit history can affect several facets of your life such as loan eligibility, loan rates, and job applications. This is why it is important to openly discuss about your credit history and to plan your future finances together.

Here are some steps you may take…

1. HAVE A TRANSPARENT DISCUSSION

To prevent unforeseen monetary issues, understand each other’s view by explicitly discussing your differences on financial issues. For example, if your partner is a saver then, he or she may view money as an important currency that shall not be wasted.

Then, for honesty’s sake, show a copy of each other’s credit report. Know what your debt and income are actually worth so that you can realistically plan on how to pay for the remaining debt. Your partner’s lack of credit history will reflect on your credit score if you combine accounts.

2. PRACTICE THE ART OF MINDFULNESS

Gone are the days when Mindfulness is practiced solely for meditation. You heard that right! Actively paying attention to the present situation can affect your finances. As you are aware of what is happening in the present, you can make better decisions about money no matter how important it is. For instance, you will keep your credit score healthy because you are aware of the billing schedules. Also, having a present mind will allow you to be vigilant in checking whether the statement breakdown (e.g., phone bill’s data usage) is accurate.

3. LIMIT THE USE OF CREDIT CARD/S

It takes no genius to conclude that overusing your credit card will jumpstart your credit. So, if you cannot say farewell to the plastic card, you might as well limit your usage. As much as possible, keep your usage to a minimum, 25% below your credit limit is a good start. Then, pay off the balance monthly. Examine your progress together as you end the month.

Image Credits: Gareth Williams via Flickr with Creative Commons License

May these simple steps pave way for a happy and credit-free marriage!

Sources: 1 & 2

Should You Borrow Money From The Bank Or Licensed Money Lenders?

Believe it or not, the bank often lends its money to people who are stable enough that they would not need to borrow the money anymore. This is why some Singaporeans turn to alternative ways of acquiring money including Licensed Money Lenders. Now, before you borrow money from any of these options, you must know their differences first.

BANKS

Loaning money from the bank guarantees that there would be future repayment of the principal amount and its interest. A loan can either be specific or open-ended credit up to a certain ceiling amount.

Characteristics:

1. Larger Loans – Banks are ideal for larger loans such as renovating your home, starting a business, or buying a car.

2. Credit Assessment – A good credit score with a low debt to credit ratio is a must to qualify for a loan. And, if you want to pay a low interest rate, you need to be vigilant about your credit score.

LICENSED MONEY LENDERS

Licensed Money Lenders are businesses that are regulated by the Singapore’s Law. Unlike the loan sharks that lend with high interest rates, licensed money lenders’ fees are controlled by the parameters of the Law, which means you can expect to have a fair deal. Some of the known money lenders in Singapore are Max Credit, CashMax Credit and Quickloan Pte Ltd.

Characteristics:

1. Smaller Loans – Licensed money lenders are the ideal option for smaller loans such as paying utility bills, getting your laptop fixed, or repairing your car (even amounting to S$1,500).

2. Credit Assessment – Unlike the banks, licensed money lenders give more leeway in the credit score. This is because they lend a significantly smaller amount. So, if you have a bad credit and you cannot get a personal loan, licensed money lenders are there for you.

3. Transaction Speed – Licensed money lenders approve the borrower’s application within the day itself!

4. Higher Interest Rate – Since they carry more risk for granting loan to people with poor credit rating, they usually charge a higher interest rate and late fees

Image Credits: Taber Andrew Bain via Flickr

Although the license money lenders give more freedom in the credit score, they will reject your application if you have a large sum credit card debt or if you have an outstanding loan from another money lender.

Sources: Investopedia and Sumo Credit Pte Ltd

Best Credit Cards For Online Shopping

Modern technology optimized our shopping experiences by letting us purchase items online. Now it is our job to maximize our hard earned money by choosing the right credit cards to shop with. Here is a list of the best credit cards available in the Singapore market…

3. DBS WOMAN’S MASTERCARD® CARD

Minimum Annual Income (Singaporean/PR): S$30,000

Take it from Beyonce as girls truly run the world – virtual shopping world to be exact!

With DBS Woman’s MasterCard®, you can earn rewards points 5x if you shop anywhere online. Also, you can get S$40 worth of Qoo10 discount coupons every month or complimentary access to selected True Yoga and True Fitness Centres! Go crazy with these privileges by using the DBS Woman Mobile App. The annual fee of S$161 is waived for a year.

2. OCBC FRANK CARD

Minimum Annual Income (Singaporean/PR): S$30,000

With over 120 free card designs to choose from, OCBC Frank Card proves to be a stylish companion to your online shopping. It gives you 6% rebates on every online purchase you make up to a cap of S$60 a month. If you exceed that, you will enjoy unlimited rebates of 0.5% on all other purchases. You can easily track your spending and rebates by going to OCBC Online.

The good news is that you can get 10% off hotel bookings by booking online through Expedia.com.sg, 10% off regular-priced items on The Travel Store, 10 off purchases on GoBuyLah.sg, and 15% off purchases on Ruedusucre.com. Also, the annual fee of only S$32 is waived for 2 years!

1. CITIBANK REWARDS CARD

Minimum Annual Income (Singaporean/PR): S$40,000

How does Citibank welcome its new rewards cardholders? Well, with complimentary shopping vouchers worth up to S$100 of course. Enjoy shopping vouchers from Havaianas & CommonThread, Dockers®, Headline Seoul, New Look, Max&Co., Victor York, and more. The Citibank Rewards Card allows you to earn 10x reward points when you shop online. Aside from this, gives you discounts to several online shops.

Want to know more? Here is the concise list of their current online shopping offers…

Blue Nile: 10% off on all purchases of standard jewelry products storewide.

HipVan: 15% off on the site’s items

IN GOOD COMPANY: 10% off storewide

Klareti: 7% off on regular priced items storewide

Luxola: 25-40% off depending on spending

Menlook: 10% off with minimum spend of S$150

Modajar: 10% off storewide

Rakuten: 10% off on the site’s items

Reebonz: 7% off on all purchases

ShopBack: 20% rebate on the site’s items

Victor York: 20% off storewide

ZALORA: 25% off on the site’s items

Fret not about the annual fee of S$193 because it is waived for a year.

Best Credit Cards for Singapore’s Students

Being a “poor” undergraduate student with little income is not a problem anymore! With credit cards that have a credit limit of S$500 offering tons of rewards on shopping, dining, travel, and more…here are the four Best Credit Cards For Students in Singapore:

4. DBS LIVE FRESH VISA STUDENT CARD

S$500 Credit Limit

Live Fresh Visa card is designed especially for tertiary students who want to manage their spending comfortably while still enjoying its rewards. The DBS reward points are accumulated for every S$5 charge on your card. It can be exchange with a wide range of shopping, dining, and travel deals. It has no minimum income requirement and the annual fee of S$64.20 is waived for 5 years!

3. MAYBANK EVIBES CARD

S$500 Credit Limit

Maybank’s eVibes card is available for tertiary students or working adults aged 18 to 30. Its credit limit allows clients to spend within their means. With a S$0 annual fee and S$0 minimum annual income required, it is really an ideal credit card for every student. Although there is a quarterly service fee of S$5 but it is waived when you pay using your card once every 3 months.

Get 1% of cash rebates for everything you purchase! And, easily track your expenses online at any time.

2. STANDARD CHARTERED MANHATTAN CREDIT CARD

S$500 Credit Limit

Are you a student wanting to indulge your bountiful appetite and thirst for films? Then, Manhattan is the right card for you. Enjoy 15% off your total bill at Harry’s Bar and Restaurant or S$1 off per movie ticket plus a free popcorn combo set at the Cathay Cineplexes. What’s more? You get .25% cash back for all retail spending, 20% off from items at Nature’s Farm, and 15% off from items at Oroton. Aside from these benefits, the annual fee of S$30 is waived for the first year and there is no minimum income required.

1. CITI CLEAR CARD

Dreaming of having free entry to Zouk and 1-for-1 drinks at wine bar one of these days? Or how about having exclusive deals at good restaurants such as db Bistro, Shin Kushiya, and The Chop House? Dream no more students! With Citi Clear card, you will be pleased with benefits in dining, clubbing, petrol, shopping, and more.

Dining

10% Citi Rebate at Starbucks

5% Citi Rebate at Burger King

Entertainment

Free entry and 1-for-1 drinks at Zouk

10% off total bill at Wala Wala Café Bar

15% off ala carte food menu at Beer Market

Petrol

10% discount at Esso stations

Shopping

6% cash rebate at Tangs

Worry not about your qualifications because there is no minimum income required and besides the annual fee of S$29.96 is waived the first year. Best of all? Upon application, you get S$30 Havaianas or CommonThread voucher.

How A Couple Paid S$36K Worth of Debt In Just 6 Months

A couple from America has consciously decided to look into their expenses and pay off their US$27, 000 (S$36, 474) worth of debt in just 6 months.

Jackie or better known in social media as The Paleo Mama and her husband sat down to discuss their finances since they were supposed to buy a house. If they are going to pursue in buying the house, they will get themselves wrapped up even more in debt.

They found out that they had US$50, 000 (S$67, 546) worth of debt due to accumulated education/student loan and the worth of their new car. They did not realize that they were supposed to pay student loan quickly as its interest and value pile up in time. So, they were determined to turn things around.

Here are the 6 things they did to cut down their expenses and earn more income:

1. MONEY MANAGEMENT

First, it is important to track where your money is going through the last month’s bank statements and receipts. The couple noticed that they are spending too much on groceries and eating out.

Image Credits: Jason Rogers via Flickr

With these things in mind, they devised a plan to categorize each expense and allocate specific amount of money on to it.

2. CUT DOWN MOBILE PHONE PLANS

They switched to prepaid phones and got rid of their iPhones. This brought them from US$160 cost of mobile phone plan to US$60 cost of prepaid phone per month.

3. CUT DOWN THE CABLE TV AND ELECTRICITY

They started using Netfilx and Hulu to stream shows (the first month is Free) rather than subscribing to cable TV. Also, they managed their electricity by turning off the lights and controlling the temperature of the air conditioner.

4. SELLING AND USING ESSENTIAL OILS

In order to earn more money on the side, Jackie learned how to make essential oils and sell them online. They also stopped buying over-the-counter medication and cleaning products and started using essential oils instead.

5. SELL THEIR STUFF

They sold their old car (now they have one family car), furniture, clothes, toys, and so on. Furthermore, they only buy used clothes on Goodwill or the local thrift stores. This helped them earn a lot of money.

6. BE HONEST ABOUT THE SITUATION

They called various companies to tell them that they can’t afford the various plans anymore. The customer services helped them to reduce the payments by more than 75%.

As you can see, Jackie and her husband were able to pay off over half of their debt by budgeting wisely and selling their stuff. Fortunately, you can also use these strategies yourself!

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