Borrowing comes with a cost. However, a good borrowing strategy can help to increase your net worth and improve your liquidity. For example, taking up an education loan could be beneficial for you to acquire new knowledge or skills and increase your future income.
How much and when should we borrow? Here is a checklist when applying for credit.
Source: SENSE, September/October 2020 issue, a newsletter by Singapore Government Staff Credit Co-operative Society Ltd.
This article is contributed by Mr Shelvaganeysh Periakaruppan, a chartered accountant registered in Singapore with more than 20 years of experience in accounting and tax. He holds a Masters in Applied Finance from the University of Adelaide and is currently a consultant in the private sector as well as a lecturer at a local private education institution. He is also an Independent Member of the Remuneration Sub Committee of SGS Co-Op since 2018. Thoughts and opinions expressed here are his own and do not reflect that of the society. For comments or feedback, please write to thc@sgscoop.sg.