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Currently Singapore and the world at large is in great peril. We are fighting wars on two fronts, health and economy. Now in this crisis where income is scarce, are you worried about your debt? If you are facing trouble in figuring out how to manage your loans and credit, we would like to introduce you to the Debt Consolidation Plan, and how it can be your saving grace.
Understanding Debt Consolidation Plan
Debt Consolidation Plan, also known as DCP loan, is a scheme that allows a person to consolidate all his/her unsecured credit together into a single loan with one bank.
The Benefits of Debt Consolidation Program
Now if you are wondering how it helps to make the situation easier for you, you’ll be relieved to know that when you opt for Debt Consolidation Program via a financial organization, the said organization pays off all your unsecured outstanding credit. Relieving you of the worry to repay multiple debts, and allowing you to focus only on one monthly installment. The perks of a Debt Consolidation Plan is that you are subjected to a relatively low interest rate, in contrast to unsecured credit cards. This is a huge benefit that makes Debt Consolidation Program such a favorable option for most.
Which banks offer Debt Consolidation Program in Singapore and How Can You Apply?
Fourteen of Singapore’s prominent financial organizations offer Debt Consolidation Plan for you to choose from. Now, each institution has its own policy and payment terms, you must do your research and seek advice as to which is most suitable for you. After deciding which bank you want to choose for your Debt Consolidation Program, you just have to put in an application and wait for the offer.
The following financial organizations offer Debt Consolidation Program:
§ Bank of China Limited Singapore
§ HSBC Bank
§ DBS Bank Ltd
§ American Express International
§ United Overseas Bank
§ Citibank
§ Maybank
§ CIMB Bank
§ Standard Chartered Bank Limited
§ Diners Club Ltd
§ Industrial and Commercial Bank
§ HL Bank
§ Oversea Chinese Banking Corporation
§ RHB Bank
Terms to Be Eligible for Debt Consolidation Program
All financial institutions have ground rules for the customer to qualify for DCP that are listed below:
1. You need to be a Singapore citizen or be a Permanent Resident,
2. Your annual income accounts too. It should be any sum between S$20,000 – S$120,000,
3. Your net personal assets, excluding your liabilities, should be worth less than S$2 million,
4. Lastly, the total sum of your unsecured debt should be equivalent or more than your annual income, i.e. your 12 month’s salary. In a nutshell, you should be knee deep in debt.
If you meet the aforementioned criteria, keep in mind that Debt Consolidation Program is only for unsecured credit and it does not cover secured personal loans like education loan, car loan, property loan and business loans. You will be charged extra 5% on the total of your Debt Consolidation Program to settle any extra charges. Rest assured, unused money will be reimbursed when your Debt Consolidation Program loan ends and you will walk free from financial shackles!
We hope this article helped address your concerns and ease your financial strain.
With the above, should you take up the Debt Consolidation Program or refinance your home loan instead?
Contact Mortgage Consultancy for an unbiased advice and multiple solutions now! We are here to help you stay updated and informed during this crisis. +65 8556 5271 https://www.mortgageconsultancy.com.sg