Do you find yourself clearing up a mountain of debt and feeling like you aren’t making progress at all? If so, you are not alone, as there are others who face the same situation in Singapore. They are drowning in interest charges and late fees, which can be stressful.
The solution? Debt consolidation.
What is a debt consolidation loan?
A debt consolidation loan is a powerful financial product that lets you combine all your existing debts into one. By consolidating your debt, you can have an easier time with your debt repayment as it lowers the interest rate and monthly installments. It can be utilized to pay off personal loans, credit card debt, or other outstanding loans.
Discover the advantages of debt consolidation loans
Are you considering a debt consolidation loan to streamline your finances? Here are several key benefits to keep in mind as you make your decision:
✔️ Cheaper interest rate
One of the benefits that come with consolidating your debt is that it gathers loans with high-interest rates together and replaces them with lower rates. This can save you from spending thousands of dollars in interest on your monthly payments.
✔️ Simple monthly payment
Another benefit of debt consolidation is that you’ll focus on paying one larger loan instead of managing multiple payments to different loan providers. Doing so makes it less likely that you’ll fall behind on payments and stops interest or late fees from building up.
✔️ Boost credit score
Finally, debt consolidation has the potential to impact your credit score in the long term positively. By consistently making timely payments, you demonstrate responsibility in debt repayment to your lender. This can increase the likelihood of being approved for future loans.
Who is eligible for a debt consolidation plan in Singapore?
To qualify for a debt consolidation plan, you must meet the following three key requirements:
|Citizenship||Singaporeans and PRs can get a debt consolidation plan.|
|Financial Status||You must earn $20,000 to $120,000 per year|
|Outstanding Debt||Owe more than 12 times your monthly salary in credit card and other unsecured debt plus interest.|
What are the best debt consolidation plans in Singapore in 2023?
Here is a list of the best lending institutions that offer consolidation plans. It is in your best interest to compare the offers by looking into the interest rate, EIR, loan tenure, and processing fee. This way, you can choose a debt consolidation plan that meets your needs.
|Debt Consolidation Plans||Interest Rate (p.a.)||EIR (p.a.)||Loan Tenure||Processing Fee|
|HSBC Debt Consolidation Plan||3.4%||6.5%||Up to 10 years||S$0|
|Standard Chartered Debt Consolidation Plan||3.48%||6.79%||Up to 10 years||S$199|
|DBS Debt Consolidation Plan||3.58%||6.95%||Up to 8 years||S$99|
|POSB Debt Consolidation Plan||3.58%||6.95%||Up to 8 years||S$99|
|Citi Debt Consolidation Plan||3.99%||7.5%||Up to 7 years||S$0|
|UOB Debt Consolidation Plan||4.5%||8.41%||Up to 8 years||S$0|
How to consolidate your loans in Singapore?
It is a simple process to consolidate your loans in Singapore. Follow these steps to start your journey toward debt freedom.
Step 1: Allot time for yourself and collect all of your existing debts, including the total amount, interest rate, and monthly payments.
Step 2: Search for the best personal loan by comparing offers from various lenders. Pay close attention to the interest rate, processing fee, and any additional charges associated with the loans you’re consolidating.
Step 3: Choose a personal loan with favorable terms and conditions and submit an application form. The lender will then review your eligibility for the loan.
Step 4: Once you receive loan approval, you can get the funds to pay off your outstanding debts. And you can start making payments on your monthly installments until it’s fully repaid.
What if you are not eligible for a debt consolidation plan?
If you aren’t qualified for a debt consolidation program in Singapore, you should still have other choices.
The debt management program or credit counseling agency is an option worth investigating. These services can ease the financial strain by helping you develop a budget and a debt repayment plan and talking with your lender.
Another choice is to negotiate a debt settlement plan with your lender. You’ll pay the majority of your outstanding debt that you owe. Bear in mind, though, that this option can drop your credits by a few or more points, making it harder to borrow money in the future.
When you have problems keeping up with your debt payment schedules, you can apply for a debt consolidation plan, which most institutions offer. Choosing a loan offer with a low-interest rate and affordable loan amount within your means would be best.
Keep in mind that your money problems will not simply go away because you consolidated your debt. It still takes dedication and self-control to make payments on time and refrain from taking on any new debt. From this day forward, start taking action and strive to become debt-free.
Accredit Moneylender: Your Go-To Source for Debt Consolidation Loans
Are you struggling to keep up with multiple debt payments each month? Consolidating your debt can be an effective solution to simplify your finances and reduce your stress. Luckily, Accredit Licensed ML is here to help.
As a highly-regarded and trustworthy moneylender, Accredit offers the best debt consolidation loan options with highly competitive interest rates, so you can easily manage your payments. Don’t let debt hold you back any longer – choose Accredit Moneylender to help you regain your financial freedom.