The dangers of debt
The reasons why people fall into debt is multifarious. A primary reason is the exploitation of marketing agencies who overly promote the wonders of credit card and loan to draw patriotism from naive customers.
For instance, financial institutions place a significant emphasis on cashback, rewards points, vouchers and many more incentives to catch your attention. Beneath the surface of these fantastic monetary rewards, credit card companies remain profitable at the expense of one’s demise. From interest fees to late payment fees, these are compounded to seep into your savings and majority of your monthly salary payouts.
In your most helpless state, credit card companies are playing with a metric used to determine your debt reliability – your credit score, to chase money owed. Collection agencies will be on your tail for the next month or even years to come. Warming up with a friendly reminder, collection agencies will pursue whatever remains that you hold in your savings account or cash. It will gradually turn into aggressive phone calls and urgent reminders that can be argued as borderline harassment.
Similarly, unsecured loans that are left unpaid will rack up late payment fees that are hard to shake off. It will eventually lead to a lower credit score, and in worse case scenarios, you risk legal actions and aggressive debt collection by agencies.
How it works
Upon agreeing on a debt consolidation plan that is designed specifically to clear your debt obligations, we will repay all your outstanding payments, fees, and additional expenses.
For example, if you owe Bank A S$21,000, Bank B S$7,000 and Bank C S$ 19,000, these will total to debt amount of S$47,000. Depending on your individual loans’ interest rates, you will have to make monthly repayments across the three different banks. We will collate all these loans into one and will essentially act as a medium to repay all your outstanding debts. In return, you will perform your monthly repayments directly with us, under a lower interest rate on your outstanding balance.
How does debt consolidation loan help?
A debt consolidation loan combines all your existing unsecured debts into a single bundle to facilitate ease of repayment. Besides, you will reap the benefits of lower interest rates as compared to the compounded interest rates from late repayments.
Due to the credit card firms/financial institutions’ high risk of allowing consumers to purchase goods on credit, the interest rates are set at an appalling figure of approximately 25% to 27% per annum. If left unpaid, an outstanding balance of S$12,000 would roughly equate to S$3,000 p.a.
On top of that, unsecured personal loans come with a mediocre interest rate of 3.7% to 5% per annum depending on the terms agreed.
Features of a debt consolidation loan
1. Enhances convenience by consolidating all your outstanding payments into a bundle.
2. Reduces monthly repayments and assists in clearing your debts. As discussed above, interest rates could reach sky-high figures and are compoundable year-on-year. It will take years if not decades to repay all your debts as they build up.
Stay away from bankruptcy
A particular news article by CNA had noted on Singapore’s soaring bankruptcy cases in March 2020, amounting to a ghastly 462 applications. Perhaps, the COVID-19 situation during this period had led to job instabilities and the toppling of businesses in vulnerable industries such as tourism and the retail market.
Whatever the case, bankruptcy is a partial self-inflicted wound that will leave you in a state of helplessness and despair. Furthermore, you would have to justify every penny of expenses incurred. Almost like a criminal under an ankle monitor restriction, your life will be micromanaged, and it leaves a permanent record that is shunned upon by co-workers and employers.
To stay away from the path of bankruptcy and a debt-ridden situation, you would need to be more mature in managing your finances. A debt consolidation loan is a peculiar package that combines and manages your payments, directing all your debt obligation towards us. It is a win-win situation that assists in freeing you from decades of compounded debt repayments that eats up your holiday plans.
Why Choose Us? (Debt consolidation loan)
Moneylenders scam are frequent. Some lenders take the opportunity to exploit the financially vulnerable by charging exorbitant interest rates or unjustified penalty fees for late payments.
Through us, avoid getting too caught up with additional debts or higher interest rates that tightens your already deteriorating cash flow issue.
Compare competitive debt consolidation loans here:
The following are the basic requirements that have to be met:
1. Only Singaporean citizens or Permanent Residents (PR) are entitled to apply.
2. You are not currently enrolled in other debt consolidation loans/plans.
3. Your total unsecured debts must amount to at least 6 months of your monthly salary drawings.
4. Your annual income must be within the range of S$20000 and above .
Only unsecured debts can be consolidated. For instance, outstanding balances on credit cards or unsecured personal loans are not backed by any form of collateral. These are debts which can be consolidated.
On the other hand, purpose-specific loans such as renovation, medical, and business loans cannot be consolidated.
Note: If you are unsure on whether a particular loan/debt can be included under the debt consolidation loan, please contact our customer service representatives for assistance.
1. A copy of your NRIC (both front and back)
2. Latest income documents
3. Latest credit bureau report
4. Unsecured loan and/or credit card statements
5. Confirmation letter detailing the outstanding debt balances or instalments (optional)
Note: The above documents are non-exhaustive
Typically, we will disburse the full amount of your debt amount (including total principal outstanding, interest rates, and any additional fees).
In some cases, the agreed amount in the debt consolidation loan will be insufficient to repay all your debt obligations. You will be held responsible for these repayments.
Yes, it will be directly disbursed to your account