As per stats revealed by Credit Counselling Singapore (CSS), over 13,000 individuals residing in Singapore are clearing their debts via a Debt Consolidation Plan. Currently, the average personal debt is around S$100,559, with a monthly income of S$3.359. But what is it, and who is eligible for debt consolidation? Many people ask this question as they wish to find out more details before opting for a Debt Consolidation Plan. By the above values, you can find out how this personal loan scheme has helped people to clear off their debts on time.
About A Debt Consolidation Loan
Through a Debt Consolidation Loan, every debt of individuals is clubbed together and paid back to a single financial institution at a lesser interest rate. It is a suitable way to repay all the funds instead of paying too many lenders. While applying for a DCP, you must be thorough with the entire process and why you are taking it. After that, you can start the process of getting a personal loan for low-income Singapore and enjoy the advantages.
The Ways A Debt Consolidation Loans Work
Many think that taking out a debt consolidation loan is more or less the same as filing for bankruptcy. But the fact is many differences are there between the two. A DCP helps consolidate loans and pay a huge amount at one and the remaining at a lower interest rate for some time. However, bankruptcy refers to dealing with overwhelming debt.
The Advantages Of Opting For Debt Consolidation Loans
Borrowers unaware of the benefits of opting for debt consolidation loans can check out the listed advantages. After that, they can enjoy the advantages and use the scheme. They are:
- A debt consolidation loan can consolidate all your debts in a single debt to save your energy and time.
- In addition, you avoid paying debts at a higher rate of interest.
- The debts need to be paid to one moneylender instead of many.
- Borrowers can eliminate getting stuck into expensive loans which might drain their assets.
Few Things To Consider While Opting For A Debt Consolidation Loan
After learning the advantages of opting for a debt consolidation loan, here are a few parameters you should consider while applying.
- Check Thorough Your Finances: Before applying for a DCP, ensure that your finances are in order. It will help you in the application process if you qualify for the criteria. As a result, your loan amount will get sanctioned quickly.
- Find Out The Available Options: Find out about the debt consolidation schemes available in Singapore, which will help you decide the best one that will fulfill all your requirements. For guidance, borrowers can always speak support from the top moneylenders operating in Singapore and apply for a suitable debt consolidation loan.
- Choosing The Right Components To Pay Lower Rate Of Interests: When applying for a loan, look for the right variable and fixed rates. Fixed rates have lower total costs but higher monthly payments. Variable rates have higher total costs but lower monthly payments.
- Finding Out All Details About The Costs And Loan Fees Beforehand: The fee of the loan and the costs might vary from one financial institution to another. A few financial institutions might charge an additional fee, while others might attach a lower amount. Hence, you should find all the necessary details and apply for the loan.
- Get A Pre-Approved Loan: While getting a pre-approved loan, the rate of interest applied by any financial institution is comparatively lower.
How Does A Debt Consolidation Plan Work?
While applying for a DCP people wish to know its working procedure. Reputed and licensed banking institutions sanctions this personal loan, and borrowers can apply for them. With this loan, you can enhance your credit score and repay the financial amount on time. Well, while looking for moneylenders offering a debt consolidation plan, you should pay attention to the interest rate and all the data being asked by them.
Final Thoughts
Do you have a significant debt to be paid to the banking establishments or financial institutions? This scheme allows you to clear off your debts at lower interest rates and pay the money to a single lender. Therefore, you can save energy, money, and time and reduce your financial burden. Well, you can now look for a licensed money lender near me to find out the amount and interest rate to be paid for combining all your loans into a single one.