If you’re struggling to keep up with your repayments on multiple credit cards, a debt consolidation loan may be the answer. This is because a debt consolidation loan allows you to centralize all your outstanding loans into one single loan, making it easier for you to make repayments and reduce interest charges.
In Singapore, there are a few different options for credit consolidation singapore. You can opt for a debt consolidation plan offered by a bank or a licensed money lender. The former typically offers lower interest rates than money lenders, but the latter may offer greater flexibility in terms of repayment schedules and other factors.
Credit Consolidation in Singapore: Taking Control of Your Finances
Citibank’s Debt Consolidation Plan (DCP) is one option for those looking to manage multiple debts. This loan allows you to consolidate your existing unsecured credit facilities from all financial institutions into one loan, making it easier for you to keep up with repayments. The DCP also comes with a host of additional financial tools and resources that you can use to manage your finances more effectively.
POSB and DBS also offer debt consolidation plans, which can be useful for those who have multiple debts on hand. Their interest rates start at 3.58%, which is competitive with the rates offered by other lenders. However, POSB and DBS do charge a S$99 processing fee. Moreover, they also charge late fees of S$90, which can inflate the total cost of your loan.
If you’re a Singaporean citizen or permanent resident and have unsecured credit facilities from various financial institutions that exceed 12 times your monthly income, you may be eligible for a debt consolidation loan. This is because the DCP scheme is designed to help you manage your debt by allowing you to pay off multiple unsecured credit facilities with one consolidated loan at a lower interest rate.