Debt consolidation Plan

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CeSaRiO

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yes...when i see first year installment im scared ... $5900 .EIR is 20%+.
looks like something is seriously wrong....or they dont wanted to offer me :)
Which bank is it, if you don't mind sharing?
 

BBCWatcher

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when i read it again...i understood total is around 95K+. Still expensive.
Not compared to credit card debt. That $65K/$95K/8 years equates to a little over 10% compounded monthly, by the way.

i pay around 5-7% for most of my installments.
If your debt is attracting 6% interest compounded monthly, then no, a 10% offer is not attractive, other things being equal. Of course you still want to make minimum payments on the lowest interest rate debt you're holding and focus your above minimum payments on your highest remaining interest rate debt.
 
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sorry ...its worst illustration by bank...very very confusing...
when i read it again...i understood total is around 95K+. Still expensive.
i pay around 5-7% for most of my installments.

Hi, can I check ? You went down to the bank personally or ? With all the documents ? Thks
 

Izumi8

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UOB interest rate is among the highest? 7.88% from second year onwards? HSBC less than 5%?
 

TripVin

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need financial advice from the bros & sisters

Hi everyone, i need some advice.
i am in debt for credit cards, credit lines and personal loans - various banks. and now i am 35 and looking to buy a place so i know this will affect my ability to borrow. will applying for debt consolidation help my ability to borrow /?

example - i owe 40k roughly. i get debt consolidation say with HSBC for 3 years so my monthly becomes something like 1300 per month.

this should help give more clarity to my TDSR / MSR ?

any advice is helpful. but please dun start bashing and suaning me. cuz i know i am in a **** hole due to poor money management and also needed money for family reasons.

thank you
 

Henabi

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It may affect as the dcp will appear in your csb report and it will only disappear about 5 to 7 years after you completely clear the final payment
 

deadlockb

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It may affect as the dcp will appear in your csb report and it will only disappear about 5 to 7 years after you completely clear the final payment

https://www.abs.org.sg/consumer-banking/consumers/debt-consolidation-plan

How will my Credit Bureau records be impacted if I take up DCP?

Your Credit Bureau record will be updated with the “Debt Consolidation” product code as the DCP is viewed to be a unsecured credit product.

Note: To ensure that all your other accounts are not reflected as being past due, you are encouraged to continue servicing at least the monthly minimum payment amounts until the DCP is approved, and make sure that outstanding amounts (if any) in excess of the DCP amount are settled.

How long will the DCP account stay in my Credit Bureau report?

Credit information will stay on your Credit Bureau report for 3 years after DCP closure, as is the practice for other products.
 

BBCWatcher

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It may affect as the dcp will appear in your csb report and it will only disappear about 5 to 7 years after you completely clear the final payment
But without the DCP the debt appears anyway, and it takes much longer to pay off the debt and/or accumulate a down payment. And as Deadlockb pointed out, it's 3 years.

I really don't understand this objection. Is it just the usual "face saving" stuff? There's nothing shameful or embarrassing about negotiating for a lower rate. Practically everyone negotiates prices at least on occasion, and of course you can (and should) negotiate the price of money, too.
 
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Izumi8

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Hi everyone, i need some advice.i am in debt for credit cards, credit lines and personal loans - various banks. and now i am 35 and looking to buy a place so i know this will affect my ability to borrow. will applying for debt consolidation help my ability to borrow /?

DCP is definitely a negative hole in your credit reports for the next 7 years (assume you will take 3 years to fully repaid the DCP) , and it will affect other banks decisions to grant you a housing loan or other loans. If you have other means to clear you CC debts, please consider other option first and only use DCP as a last resort.
 
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delceer

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Hi everyone, i need some advice.
i am in debt for credit cards, credit lines and personal loans - various banks. and now i am 35 and looking to buy a place so i know this will affect my ability to borrow. will applying for debt consolidation help my ability to borrow /?

example - i owe 40k roughly. i get debt consolidation say with HSBC for 3 years so my monthly becomes something like 1300 per month.

this should help give more clarity to my TDSR / MSR ?

any advice is helpful. but please dun start bashing and suaning me. cuz i know i am in a **** hole due to poor money management and also needed money for family reasons.

thank you


pay money and check your rating at credit bureau.
 

BBCWatcher

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DCP is definitely a negative hole in your credit reports for the next 7 years (assume you will take 3 years to fully repaid the DCP)....
No, that would be 6 years in your example: 3 to pay off the DCP, and 3 after the DCP is paid. Not 7.

....But if you don't take the DCP then the risk of bankruptcy is higher, and you're probably not paying off your debt within 6 years. The alternative to the DCP is not lollipops and rainbows.

I really don't understand this argument, this fear. It seems quite irrational. If you're a candidate for the DCP, you have onerous, expensive debt that's bogging you down or worse. That could, at any moment, tip you over the edge into bankruptcy. So why the fear of damaging a credit history that's already badly damaged and very likely to get worse if you don't act? You're not in any position to take on more debt, and if you have a down payment for a home saved up then you're c-r-a-z-y if you don't run to your creditors and pay off that ~28% credit card debt immediately...and then spend some more time debt free and accumulating another down payment.

Does. Not. Compute.
 
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deadlockb

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DCP is definitely a negative hole in your credit reports for the next 7 years (assume you will take 3 years to fully repaid the DCP) , and it will affect other banks decisions to grant you a housing loan or other loans. If you have other means to clear you CC debts, please consider other option first and only use DCP as a last resort.

Just i dont understand one point , in what way DCP has negative impact on Credit Breaue report/Loan Application? Actually ,the borrower is clearing all loans( DCP bank is clearing on his behalf) that he owed and he is not defaulted.
 
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