Until the end of December, 2.8 million Singaporeans will receive their SG Bonus benefit. These bonuses are available to Singaporean citizens that are at least 21 years old and range from S$100 to S$300 based on recipients’ 2017 annual income.
Some recipients may already know exactly how they want to use this money; however, others will have an interesting chance to put these funds to good use. Here are some clever ways to make the most of your SG Bonus this year:
Pay Down Your Credit Card Debt
For those with any amount of personal debt, it may be be prudent to immediately use their SG Bonus in order to pay down these loans. This is an especially good idea for those that have credit card debt because credit card companies tend to charge some of the highest annual interest rates of about 25 per cent.
For example, even an unpaid balance of S$100 to S$300 can quickly result in hundreds of dollars of interest charges if left alone.
Therefore, borrowers that only make the minimum payment on their credit card bill could have much to gain by paying down their current credit card debt with their SG Bonus.
If you still have a sizeable unpaid balance left after doing so, you may want to consider a debt consolidation plan in order to get your finances in order. These loans typically charge much lower interest rates than credit cards and other loans, making them a useful way for borrowers to consolidate and repay their existing personal loans.