Planning to go for a debt consolidation loan? You have come to the right place to get the right information about debt consolidation plans in Singapore.
The debt consolidation plan is a process of putting together all your unsecured loans into a single loan. This is an arrangement made by the financial institutions of Singapore. Debt consolidation started in Singapore in the year 2017. With the establishment of this plan, a lot of customers started showing interest in it. The individuals get attracted to the plan is only because of its various advantages.
The debt consolidation plan is only made for the citizens of Singapore or the permanent residence of the country. Not everyone is eligible to opt for a debt consolidation plan. The debt consolidation plan comes with various terms, conditions, and criteria to meet. This is because the debt consolidation financial institution has to club all the various different laws of an individual into a single. This task of consolidation is quite hectic. The experts of the consolidation plan evaluate each and every document with keen evaluation methods.
If you are looking for a debt consolidation plan, you have to fulfill the eligibility criteria of the plan.
- Your loan amount should be 12 times more than your monthly salary.
- Your minimum annual salary should be $30,000 and a maximum of $120000 in Singapore.
- You should be a citizen of the country or a permanent resident of Singapore.
LONG TENURE OF LOAN
The main advantage of a debt consolidation plan is the long tenure of the loan. The debt consolidation plan offers a loan period of 7 to 10 years. This is quite lengthy compared to other financial plans. A person facing a financial crisis can choose this plan due to the long tenure of it. There are other financial plans offered by financial institutions. But the tenure of the loan is not as flexible as debt consolidation plans. Under the debt consolidation plan, you can choose the tenure of the loan as per your requirement.
People often think due to the long tenure of the loan. They have to pay more interest. This is not true at all. You can save the interest amount of the previous and secured loans and spend it on debt consolidation. This is done by saving the extra amount of interest and making huge payments of the debt consolidation loan. Debt consolidation plan money lender Singapore, is very famous. They tell you how to consolidate your loan without any trouble.
ONE PAYMENT
The main advantage of a debt consolidation plan is a single payment of EMI. Debt consolidation is an arrangement made where all your unsecured loans are paid by debt consolidation institution. By doing this, the debt consolidation institution piles up all your unsecured loans into a single loan. Under unsecured loans, you have to keep a check on each and every single known every month. To make the payment of EMI, you have to concentrate on the internet and the payment dates of different loans. This makes it very difficult to concentrate on each and every loan.
The main motive of the debt consolidation plan is to reduce the burden of the employee by combining all the loans together. When all the loans are combined to a single loan, the individual need not worry about the interest rate of various loans. The individual has to concentrate only on one loan, one payment, and one interest rate. This makes it very easy for the individual to concentrate on paying the loan.
INCREASE YOUR CREDITS
It is always said that debt consolidation plans reduce credit scores. This fact is based on the illogical aspect. In fact, it is a huge advantage to take a debt consolidation plan. This is because by taking a debt consolidation plan, the credit score of an individual increase. It is often misunderstood that a debt consolidation plan can have a bad impression on the lenders. The lenders of unsecured loans assume that an individual is not capable of paying back the loan.
But this fact is not true at all. When the debt consolidation Bank repays back the unsecured loan, it gives a good impression on the lender. The lender Bank assumes that the individual is capable of paying back the loan before the maturity of it. This, in turn, increases the credit score of the individual.
INTEREST RATE
The debt consolidation plan doesn’t work for secured loans. It is a consolidation plan made only for unsecured loans. The interest rate of credit cards in Singapore varies from 25 to 30%. On the other hand, the interest on debt consolidation varies between 8 to 10% in Singapore. There is a huge difference between the interest rates of both the plans. The difference is the opportunity for the individual to save his or her money. By opting for a debt consolidation plan, you can pay a lesser rate of interest rather than paying more interest rates on unsecured loans. The interest rate on unsecured loans differs from one another depending on the institutions.
To get a great deal on debt consolidation plan do and in-depth research. Different institutions have different plans to offer debt consolidation. Fast loans Singapore are growing rapidly, and the debt consolidation plan is one of them. The plans come with different interest rate and tenure of the loan. Interest it’s completely dependent on the period you are opting to pay back the loan. Choosing the best plan can help you save money on the interest amount.
REDUCES BURDEN
The main advantage of a debt consolidation plan is it reduces your burden. Different loan plans come with different criteria to fulfill. If an individual is under the debt of unsecured loans from various financial institutions, it causes problems. It causes the problem of a burden on an individual to pay back different loans at different times. Maintaining complete information of all the unsecured loans get difficult.
This is the main reason why the debt consolidation plan came into existence. The debt consolidation plan combines all your unsecured loans into a single loan. By doing this, it reduces your overall burden of unsecured loans into one loan.
