What You Need to Know about Debt Consolidation Plans

If you’ve already done your homework, then you might know that a Debt Consolidation Plan (DCP) is a refinancing system implemented aimed at addressing the difficulties of paying unsecured loans. Commonly abbreviated as DCP, it allows customers the chance of combining all previous debt in a single loan with one bank across various financial organizations.


In most cases, the loan is offered at a cheaper rate, and the monthly discount is fixed for a certain amount of time. Once you fall into debt with too many credit cards or creditors, juggling missed payments can be unpleasant. Moreover, it may be overwhelming to consistently have these persistent recalls of your incredible quantity breathing down your neck.


Fret not, though, since a Debt Consolidating Plan could be the ideal solution for managing debt problems in times of economic crisis. But keep in mind not everyone can request for a DCP. Rather, you need to address the necessary conditions to be qualified for Debt Consolidating Plan in Singapore.


In a nutshell, you must be a Singaporean citizen or a permanent resident and you must be a minimum of 18 and aboveat the time of application. It is worth noting that the annual income is accessible between $20 million $120 millionor net assets of less than $2 million. Most importantly, you will need your total unprotected credit on all cards and revealed lending at least twelve times before commencing the application.


The good thing about having a DCP is that it can help you control your monthly reimbursement and be reclaimed from debt in the event debt of your card is too high. Based on your lending during the whole application process, the financial adviser calculates the monthly amount payable and maximum repayment date.


By consolidating your debt in a single loan, you have to make a payment rather than managing several accounts. Also, it makes it easier for you to track your payment scheme. Bear in mind that most credit cards carry high interest rates and can continue to raise high interest rates every month unless paid on time.


Now that you have an insight into what is destined to come your way, you need to be sure that you’re counting on top debt consolidation plan providers Singapore. You want to be sure that you will reap numerous benefits, and it will only be possible if you do your homework.