Things to keep in mind when taking out a loan

Nelson Neo, Head of Home Finance Solutions for the DBS Consumer Banking Group, said this is an option, but homeowners, when it comes to refinancing loans to help families relieve the financial stress caused by inflation. Legal and valuation costs.

“Regardless of interest rate trends or mortgage package choices, we strongly recommend that you secure sufficient funding as a buffer in case of further interest rate hikes or unforeseen circumstances,” Neo said, which is ideal. It’s been about 2 years.

While getting a loan may help young people survive the tough times of financial needs, experts have also warned of the need to exercise caution.

Anthony Seow, Head of Payments and Platforms at DBS Consumer Banking Group, notes that taking a loan is a “significant financial commitment” over a period of time, and young people need to ensure their ability to repay the loan. I said there is. , Increase the repayment amount of the loan and reduce the interest expense.

He also said that fees and fees, loan repayment flexibility, and loan lock-in duration should also be paid attention to, and that some loans have penalties for repayment earlier than agreed. I paid attention to.

“Payment delays and repayment issues can be reflected in credit scores and records, and unfavorable records can affect future funding needs,” Seow said.

Is it a good time to invest?

Jonathan Ong, a 32-year-old realtor and business owner with a one-month-old baby, a paying mortgage, and three businesses, has stopped risky investment in the stock market and the cryptocurrency scene.

“I was fortunate to be able to withdraw cash before the cryptocurrency crashed and the stock price went down, but for now it’s too risky to have enough cash on hand.” He said.

He runs the restaurant Daddy On Madras, a virtual tour company Metaspace, working on a real estate application called Homee SG. All of this is lowering the rate of return as people spend less and the cost of goods goes up.

Inflation makes it difficult for 25-year-old chief executive Jessica, who refuses to reveal the family name, to save for further research.

She added: “I was thinking of making a longer-term investment plan, but I don’t want to do it because inflation makes it not easy to access and use when needed in an emergency.

“Compared to the current inflation rate, interest rates on long-term investment plans also seem to be bad.”

However, experts said it is important for young people to start investing for the future if they have enough savings on hand.

Timothy Ho, co-founder and editor-in-chief of the investment website Dollars and Sense, said:

“As young people, our greatest advantage is age. Today, we easily invest in good companies, have emergency savings, and worry about having to sell them as long as we manage our finances well. You can hold it for 20 or 30 years without doing it. “

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