Who Is Eligible For Debt Consolidation?

Are you looking for more information about debt consolidation? This article provides details about the debt consolidation plan available in Singapore. A debt consolidation loan Singapore combines every unsecured debt in a single one with a financial or bank institution.

The financial authorities clear the outstanding accounts and credit cards. It helps borrowers to pay attention to a single loan.

Also, the interest rate of a DCL is much lesser than credit cards.

• Who Is Eligible?

The approved money lender Singapore sanctions loans to people earning $30,000 to $120,000 a year. They should be a permanent resident of Singapore or a citizen of Singapore with a net Personal Asset not less than $2 million.

They must have total interest-bearing unsecured credit and unsecured debt, which must not exceed 12 times the value of the monthly income.

• The Process To Apply For A Debt Consolidation Plan

Before applying, borrowers must have all the necessary details with them. They should know about the interest rate, the final amount to be paid, the fees, etc. For that, they can look for licensed moneylenders operating in Singapore. The professionals can guide everyone regarding the DCP, following which they can start with the application process.

• The Amount Of Money To Borrow From A Debt Consolidation Plan 

The financial institutions lend an amount equal to the outstanding balance, which includes other charges, and fees, as per the statement of accounts. Sometimes, the accepted DCP amount might not be sufficient to clear the outstanding balances. In this situation, you have to clear the amount. Also, the first DCP comes with a 5% allowance on the total amount being sanctioned. It helps deal with the incidental charges incurred when approved loan.

Do’s And Don’t While Opting For A Debt Consolidation Loan 

Check out a few do’s and don’t which will help borrowers to understand what they need to do and what not before opting for a consolidation loan.

• Look For The Lowest Interest Rate

14 financial institutions are functioning in Singapore that can offer loans to individuals. Before making a decision, make a comparison and plan accordingly. Some DCPs offer different promotional interest rates, money-saving features, and cashback. Evaluating a plan’s features is the most important thing to opt for the best instant loan Singapore for low income.

• Change The Spending Habits 

With a DCP, the process gets simplified as it takes the stress out of due dates and bills. If you are keen on maintaining debt-free status, there needs to be a change in your spending behaviour. Start looking for ways to decrease your spending and look for other alternatives to increase your earnings. If needed, you can also use a budgeting application to manage expenses anywhere and anytime.

• Don’t Miss The Dates Of Payments

With the help of a DCP calculator, you can get an idea of the monthly payments and design your budget accordingly. After starting the plan, your monthly payments must be on time and full. Missing a single payment will lead to a late fee and a charged interest. Therefore, it is better to avoid missing dates of payments.

• Check If A DCP Is For You

A DCP is a suitable tool for managing several high-interest debts. People with multiple outstanding personal loans and credit card bills can go ahead with a debt consolidation plan. It leaves you with a single monthly payment and saves your funds.

• Simplifies The Payment Process

Managing several debt payments every month is pretty difficult. Also, it can lead to missed or late payments, which can have a negative impact on your credit score. To avoid that, you can streamline your payments which will help manage debts in the best possible way.

• Lower Your Stress Level 

Managing a single debt in spite of two or three is easier and can avoid stressful financial interactions. In addition, knowing that you have to pay a lower interest rate reduces your stress.

• Requirements Of Debt Consolidation 

A few specific requirements there which applicants need to fulfill to get their debt consolidation plan accepted. The things to be fulfilled are proof of income, credit score, employment details, identity proof, etc. All information must be correct if you want the loan application to be accepted on time.

The Bottom Line 

Are you interested in opting for financial help or a debt consolidation plan? If so, checking the eligibility criteria is most important. Well, all these details are included here, and after getting the idea, you can decide to choose the licensed moneylenders.

They can offer the loans at the best possible rates, so you do not have to pay a huge amount. But before opting for a loan, you should always check out the details about the licensed operators. Do not make any mistakes; otherwise, you might get into trouble.