Quote:
Originally Posted by Penguin23
From what you wrote i sounds like a bank put you on a fixed installment loan repayment scheme, which sound good because of the words they use (i.e. zero interest) but can come with a hefty processing fee (5%-8% upfront)
Would advise that you list down:
1. Loan quantum with each bank,
2. Effective interest rate (EIR) you are paying - get it from the bank if you don't know how to calculate
The goal for repaying your debt in the shortest time is basically twofold:
1. Restructure your loans whenever possible, learn how to look for the cheapest loans. Learn to read the fine print in bank's loan programs.
2. Be disciplined about the payments and do not miss a single installment. Late fees and step-up interest rates can kill you very quickly. Make a table listing all payment deadlines and stick to it.
Be aware that the bare minimum you need to service a loan is roughly 3% of your total outstanding. You did not say how much you are capable of paying per month, if the number is anything less than $1.5K I am pretty much sure you need to take on a second job and get another stream of income.
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The agreement I had with the bank is just monthly installments with no interest or processing fee because it has been owed for a very long time already. However, it's the weekly repayment with the licensed moneylenders that I'm worried because I'm currently looking for a job and have been driving Grab on a part-time basis to sustain. Trying to see if I can get a full-time job and bump my income to 4K/mth.