Personal Loans

Debt Consolidation Plans – The Saviour to Your Credit Woes?

Peter Lin 0 Comments

debt consolidation plan infographic

In Singapore, we’re really helpful. When an accident happens on the road, we always slow down our vehicles to make sure that no one is seriously injured. In fact, so many of us do it that it often causes a significant traffic jam. Wait, what? You’re telling me they’re just taking down the number plate? To buy 4D? Aiyah, why did you burst my bubble like that. I’ll pretend you didn’t say anything.

But in all seriousness, we should always do the right thing and do what we can to help people in need. So if you know someone who has trouble managing their credit card and personal loan repayments, see if this is something that you can share with them:

debt consolidation plan infographic

What is a Debt Consolidation Plan?

It’s a simple repayment scheme that allows you to bring together all your outstanding unsecured debt from credit cards and personal loans into one easy monthly payment.

Debt Consolidation Plans are being offered by 14 financial institutions including banks like HSBC and Citibank. Each has their own fees and charges, so you should compare as many as you can.

However, do note that the eligibility requirements are the same for all financial institutions. You have to:

  1. Be a Singapore Citizen or Permanent Resident
  2. Earn between S$20,000 and S$120,000 each year
  3. Have a total outstanding debt of more than 12 months’ salary

 

What if I don’t qualify for the Debt Consolidation Plan?

That’s a good thing! Hopefully that means your outstanding debt has not reached 12 months’ salary yet. But that doesn’t mean you’re off the hook. If you’re worried about your credit card debt snowballing, consider applying for the best personal loan in Singapore and use it as a way to consolidate your debt at an interest rate that is lower than credit cards.

Know someone who can benefit from this information? Share this with them.

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Peter Lin

I am the poster boy for reinventing one's self. I've been a broadcast journalist, technical writer, banking customer service officer and a Catholic friar. My life experiences have made me the most cynical idealist you'll ever meet, which is why I'm also the co-founder of a local pop culture website. I believe ignorance is not bliss, and that money is the root of all evil only if you allow it to be.

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