If you’re struggling to juggle multiple credit cards and loans, or even worse, owe debts to unlicensed money lenders, it can be extremely difficult to keep up with repayment dates. Not to mention, a missed payment can lead to additional fees and interest charges.Check this out :https://www.edudebt.sg/mastering-debt-repayment-scheme-a-comprehensive-guide-for-singaporeans/
The good news is, there are a number of ways to manage your debts in Singapore. One such way is to apply for a debt consolidation plan (DCP). This helps you combine your various debts into a single loan with a financial institution, which you then repay at a lower interest rate over a longer period of time.
A Complete Guide to DCP Singapore: Managing Debt Smartly
DCPs are available from 14 Participating FIs in Singapore and are regulated by the Monetary Authority of Singapore. To qualify, you must have total interest-bearing unsecured debt on all your credit cards and other unsecured credit facilities with financial institutions in Singapore that exceeds 12 times your monthly income.
You can also consolidate your revolving credit facilities with a DCP, including lines of credit and overdraft facilities. However, the total outstanding balance of your revolving credit facility must not exceed the total amount you have consolidated with the DCP.
As a first-time applicant, you may be eligible for a 5% allowance on the total DCP value that you have applied for. This is to help you cover unforeseen expenses that may arise after the DCP has been approved and disbursed. This supplementary allowance will be paid directly to the financial institutions that you owe your debts to, so you don’t see this money in your bank account.