Ever felt overburdened by individual debt? You are not the only exception. Around 40% of Singaporeans spend more than the purchase and individual funds in Singapore has lurched below 0%.  With such insights, the dream of living debt-free is replaced with the truth of being shackled to leasers and bank advances with high financing costs and years to pay off.

Irrespective of the reasons for getting into debt problems, the goal is to acknowledge that you have an issue and then execute a plan for tackling it. Facts show that many find themselves under the burden of heavy debt. When the debts are too high, it is suggested to approach private moneylenders to take a loan for financial needs.

Debt-free living is possible with these good financial habits:

Cut up those cards

Credit cards, the things people fondly call, “plastic money” are some of the biggest reasons so many people are deep in debt today. There is something about this plastic money that makes people lose their sense of control. It is almost as if they have won a free shopping spree or that they think the bills they incur would magically disappear the next day. Using a cash-basis payment is always better. Another great alternative would be to use a debit card. With debit cards, debt will not pile up because you only get to spend the money that is in your bank.

Apply for the Debt Consolidation Plan

You are eligible for a Debt Consolidation Plan in case of unsecured debts which crosses 12 times your monthly income. It is an initiative by the Association of Banks in Singapore that enables to consolidate what you have to pay across different financial institutions with one of the 12 DCP participating institutions at a lower interest rate. Note to remember that when you sign up for DCP, you will not be able to gain new credit facilities, unless the loans are for medical, education or any other purpose. One will be provided with one credit card with a limit of one month’s income to handle daily expenses and cash flow.

Stash some cash

Instead of keeping a credit card for “emergency purposes,” keep a stash of cash in a hiding place in your home that you can access when an urgent need arises. You say you are only going to use the card for emergency purposes but the truth is, you are always tempted to reach out to it every time you want to buy something that is out of your budget. Unfortunately, you give in to these temptations more often than not.

Living debt-free does not mean you do not get to enjoy life’s pleasures. You can be on your way to living a life free of debt and stress with the right attitude, strong willpower, and financial savvy skills. You can even approach licensed money lender Singapore to get rid of debts and allow them to suggest you better loan plans.