Can’t pay your money lender in Singapore? Here’s what to do!

A person sits at a desk, surrounded by overdue bills and a letter from a money lender in Singapore. Their worried expression shows their inability to pay

If you are unable to pay moneylenders in Singapore, it can be a stressful and overwhelming experience. Debt problems can quickly escalate, leading to legal action and severe consequences. However, there are steps you can take to understand your debt and prevent it from escalating.

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Understanding Your Debt in Singapore:

In Singapore, licensed moneylenders have the legal right to seize collateral to recoup their losses if you cannot pay back your loan. If you have borrowed from a licensed moneylender and are struggling to repay your debt, it is essential to seek help and guidance. Moneylenders are more willing to work with you, even if you do not have perfect credit, and there are options available to help you restructure your debt.

Preventing Debt Escalation:

To prevent your debt from escalating, it is crucial to take action as soon as possible. You can approach Credit Counselling Singapore (CCS) for help with restructuring your debt if you have borrowed from licensed moneylenders and have problems repaying them. It is also important to be aware of the terms and conditions of your loan and to avoid borrowing more than you can afford to repay.

Key Takeaways:

  • Seek help and guidance if you are unable to pay moneylenders in Singapore.
  • Take action as soon as possible to prevent your debt from escalating.
  • Be aware of the terms and conditions of your loan and avoid borrowing more than you can afford to repay.

Understanding Your Debt in Singapore

A person in Singapore struggles with debt, unable to pay a money lender

If you are unable to pay your money lender in Singapore, it is essential to understand the debt landscape in Singapore and the strategies available to resolve debt challenges. Here are some subsections to help you navigate the registry of moneylenders, explore debt repayment options and support systems, and assess the impact of non-payment on your credit score and future borrowing.

The Registry of Moneylenders is a public directory of licensed money lenders in Singapore. It is essential to ensure that you only borrow from licensed money lenders to avoid falling prey to illegal moneylenders. Licensed money lenders are required to abide by the regulations under the Moneylenders Act, which includes a cap on interest rates, administrative fees, and late payment fees.

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Exploring Debt Repayment Options and Support Systems

If you find yourself unable to pay your loan from a licensed money lender, there are alternatives and options that you can consider. You can approach credit counselling Singapore for financial counselling and assistance in managing your debt. Social service agencies such as Adullam Life Counselling and Arise2Care also offer debt management programmes and individualised debt management programmes to distressed borrowers.

Assessing the Impact of Non-Payment on Credit Score and Future Borrowing

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