Debt consolidation in Singapore
The Debt Consolidation Plan is a debt refinancing scheme that allows an individual to combine all unsecured obligations such as credit card bills and some forms of unsecured loans from several financial institutions into a single account with a single participating financial institution.Specificconditions to consolidate unsecured loans, on the other hand, are exempt from being included in a DCP. In order to be exempt from a DCP, the following sorts of debts must be present: debts owed under joint accounts; renovation loans; school loans; medical loans; and credit facilities given to enterprises or for commercial reasons.
The requirements in order to be eligible:
- Should be a citizen of Singapore or a permanent resident of Singapore
- Two-year earnings of between S$20,000 and less than S$120,000 per annum with a Net Personal Assets of less than $2 million.
- It is not permissible to have more than 12 times of the monthly income in interest-bearing unsecured debt on all credit cards as well as unsecured credit facilities with financial institutions in Singapore.
Any unsecured credit facilities that you have in place will be closed or stopped once your DCP application has been accepted. However, the approving DCP bank will immediately provide you a revolving credit facility that will be fixed at your monthly income to offer you a simple form of payment for managing your daily necessities.
It is recommended to contact the participating financial institutions directly for further information or apply for a DCP. It is possible that the terms and circumstances of DCPs, such as the interest rate and payback duration, will differ between various financial organizations.Banks and financial organizations have complete discretion over whether or not to approve or reject DCP applications submitted by qualified people.
Debt Consolidation is a debt refinancing program thatwill be offering a customer the option for consolidating all the unsecured credit facilities such as credit cards and some types of unsecured loans across financial institutions with one participating financial institution.