Located in 743 Yishun Ave 5, #01-548, Singapore 760743.
Accredit Licensed Money Lender has been hearing feedback from our customers and now, we are bring our services to Yishun! For all our customers that stay in the North of Singapore, such as Marsiling, Woodlands, Admiralty, Sembawang, Khatib and Yio Chu Kang.
We are now poised to serve you even better, bringing our top quality customer service and expertise to wherever you are.
Yishun MRT Station
Difference Between Good Debt and a Bad One
For common people, debt money is a bad thing in general. When the best of us are tried in financial situations, we have no other resort that to burden ourselves with debt money that we are or are not sure if we will repay the debt money on time. Although in finances, there are debts counted as good debts and then the ones which are not so good to be having on yourself. Another thing that troubles almost everyone who is under debt is the interest that is added to the debt in cash money until the time the money hasn’t been repaid. Unreasonable amounts of investment are something which becomes the reason for people not being able to pay back cash. No argument can say that debt is good. No one likes it, but there are things for which you can move towards debts and not feel anxious about the repayment.
Good Debts vs. Bad Debts
Taking debts can be bad for anyone, whether they are a middle-class family or a rich one. Though debt seems to be the only source through which a person can afford to have significant, expensive items like a house or a car. Taking mortgage or vehicle loans can be justified as a reasonable debt as these are the things that add value to a life that would otherwise be of no cash cost if you’re living on rent for all your life. There is though another viewpoint to debt and money which refers to pointless spending through credit cards or to buy expensive stuff that you don’t really require for basic living like an inflatable pool for your backyard. In order to differentiate on good and bad debts, it is essential that we look at the specified financial situations in question.
As the old saying goes that ‘money makes money’. If you’re borrowing money from any institution in order to make money work for you, it can be counted as good debt. If debt increases your net worth or helps you make a profit through investment, it can be taken as a positive. There are certain kinds of expenditure that might be worth taking a debt.
Technical or College Education
Education is the key to earning, is what our parents and peers have always told us. Better education increases the capability of a person to land a job that will pay well for the efforts made in college. A better-educated person will always have new opportunities with less of seeking if the need arises for a new job or a better salary. If you’re taking a loan or debt for technical or college education, it is likely to pay for itself once the courses are complete and the new worker joins the workforce starts earning. The better the training, the more salary you can demand and pay off the loan in instalments with your salary. Although, if your educational qualification does not promise a fruitful career or has negligible income sources, you’re most likely to have trouble with the debt, and it then turns bad.
Starting a Small Business
Setting up a business with the sole purpose of making money regularly, is a reasonable thing to take a loan for. Starting up a venture can be an excellent start to pile up finances to invest them later on in the market and increase your wealth. An advantage of this endeavour is that you are your own boss without the reliance of any company that must hire you and pay you monthly in checks. The profitability of your business is proportionate to the amount of hard work you put in. If you really give in to the company with all the hard work and passion, you can turn it into a self-sustaining enterprise, and with some fortune, you might even end up owning an initial public offering that increases your net worth. You must always take care of the line of business that you choose. You must have the knowledge and the passion for the front of the work you are about to start. Because if the company fails, the business loan becomes a bad debt very soon.
The debts that you incur for increasing your net worth or for business purposes are counted as good debts. But if you’re using the money taken on loan to buy assets that depreciate in value over time without reaping profits will be bad debts. You should not be employing money from loans into certain items that do not help you gain any form of income.
We all like to have our own rides for the daily commute or for going out without having to be in the crowd for trains or buses. Buying a car, especially a new one, costs a lot of money. A lot of us like to think of taking a vehicle loan to buy a new car off the showroom. Paying monthly interests along with the instalments is money wasted on something that decreases in value as soon as you take it out of the manufacturer’s hand. Buying used vehicles on loan does seem nonsensical, but then the loan amount that you will require would be smaller and can be paid off much easier than buying a new car. Avoid taking loans on a new car and try paying cash instead for a used one.
Credit Card Shopping
Credit cards will always be on the bad debts list because of the habits it instils in users. A credit card makes people believe that they can buy stuff whenever they like and can pay it later. Although, that’s how it works, it is not supposed to have a negative impact on your finances and savings. Buying clothes, which are the most invaluable thing to be in debt for, or expensive accessories using credit cards is not a wise decision until you have the kind of money to pay for it later. Else it merely counts as a bad debt.
Loans and credit schemes do help a person when in need. It can be used to turn the state of your finances from pitiful to a well-acquired estate. But using debts to your advantage is the only thing that you would want. Because when the obligations overtake the income that’s when they go wrong, and you might end up being in more debt than you actually earn.