Debt consolidation Plan

[KKK1978]

I agree, best to talk to ccs. However if i am noy wrong, if ur cc due is 14, and ur dmp is 20, just pay dmp amount, inform ccs as per their advise, cos u need to submit first payment schedule to ccs

to elaborate, if first DMP payment is set on 20th of October (as stated in the approved DMP plan) but u also have a CC payment due on 14th. CCS will advise you to make the payment on 14th as per normal (even though DMP is technically approved), and still have to make the first DMP payment on 20th. Many see this as double payment.

CCS will advise you to make whatever payments you can to the banks, I think to avoid having Banks issue court letter.

if u are not meeting min payments, then your liabilities would increase, which means CCS/Banks wld likely have to re-assess the proposed minimum DMP payment. Would it affect chances of approval ? - I dont know. Best talk to CCS.

But please do not borrow more to pay.

 

[KKK1978]

For those with moneylender problem can approach blessed grace social services. They can help u nego with ML for a monthly installment payment. Its free of charge

What about if my son debts are not from bank but moneylenders. Can he still go to CCS

 

[IklimAdam]

Ok done see PM

Hi Bro

Unable to do so & provide my email address as I'm a new user too..

 

[oceanicmanta]

I agree, best to talk to ccs. However if i am noy wrong, if ur cc due is 14, and ur dmp is 20, just pay dmp amount, inform ccs as per their advise, cos u need to submit first payment schedule to ccs

it was clear CCS instruction that 14th payment still needs to be paid. Someone had asked CCS this question during the group session with approved applicants.

even after DMP approved, if a bank calls you to say pay $110 per month going forward, instead of DMP $100, you shld pay what the bank says. CCS says sometimes the banks would have a slightly different payment amount. If there is a big difference call CCS to clarify.

anyways, CCS will cover all possible scenarios one can think of, & give clear explanations

first step is still get the process started asap

 

[KKK1978]

Agree. Just follow what ccs says

it was clear CCS instruction that 14th payment still needs to be paid. Someone had asked CCS this question during the group session with approved applicants.

even after DMP approved, if a bank calls you to say pay $110 per month going forward, instead of DMP $100, you shld pay what the bank says. CCS says sometimes the banks would have a slightly different payment amount. If there is a big difference call CCS to clarify.

anyways, CCS will cover all possible scenarios one can think of, & give clear explanations

first step is still get the process started asap

 

[Matin83]

Bros & Sis..my dcp with scb have been approved
I login to the internet banking and see account created
But my credit cards and personal loan with other banks is still active
Can anyone advise me wat the next step

 

[sgman88]

DMP every month needs to pay the banks individually. If owe 10 banks, will have to run here n there to make payment, very troublesome. It will be more convenient if DMP can also same like DCP, pay only one bank or one creditor. But that to say, dmp debtors may not be able to negotiate with the banks for a discount if they get bonuses to do early settlement.

 

[Izumi8]

submitted my ccs report yesterday, got called today. seems like they are genuinely interested to help. so once approve, i still need to make my monthly payment to all individual banks ? ccs so powerful ? even banks have to give face @ 3% interest rate ?

Your min payment every month still ok right? CCS unlikely will get dmp for you. They will ask you to cut your expenses.

 

[Jojodespo]

Is this true..?

If after paying all minimum payments, I still have 1.8k left for general expenses like bills, renovation, food, transport etc. Will CCS help?

The way you say is like CCS won’t help those that still can manage to pay minimum sums to all the creditors, but they know that we are paying HIGH interest to the banks. So they’re gonna keep letting ya suffer and pay banks 27% interest forever? haha

Your min payment every month still ok right? CCS unlikely will get dmp for you. They will ask you to cut your expenses.

 

[oceanicmanta]

Is this true..?

If after paying all minimum payments, I still have 1.8k left for general expenses like bills, renovation, food, transport etc. Will CCS help?

The way you say is like CCS won’t help those that still can manage to pay minimum sums to all the creditors, but they know that we are paying HIGH interest to the banks. So they’re gonna keep letting ya suffer and pay banks 27% interest forever? haha

what izumi said is not correct.

how much left after u pay all general expenses monthly ?
how much is your min payment monthly ?

say if u left $500 after general expenses and min payment is $1500. CCS proposal would probably propose $2000 payment monthly. This 2k goes to pay down Principal AND Interest @ 3%.

On the other hand, paying minimum each month is mainly just interest payment, and the principal is not reduced.

THIS IS JUST AN EXAMPLE.

 

[Izumi8]

Yup, in the Info talk they specifically mentioned dmp is only for those unable to pay min payment. They are not suppose to help you "reduce interest rate" if you have no issue servicing monthly payment.

 

[oceanicmanta]

Yup, in the Info talk they specifically mentioned dmp is only for those unable to pay min payment. They are not suppose to help you "reduce interest rate" if you have no issue servicing monthly payment.

not true, maybe some misunderstanding

my relative was also able to make minimum payments & his DMP was supported and approved

 

[Izumi8]

not true, maybe some misunderstanding

my relative was also able to make minimum payments

What I mean unable to pay is "after minus out all living expenses, the amount is not sufficient to service the monthly payment"

such as the example you gave above, left only 500 for payment of 1500.

 

[oceanicmanta]

What I mean unable to pay is "after minus out all living expenses, the amount is not sufficient to service the monthly payment"

such as the example you gave above, left only 500 for payment of 1500.

CCS did not ask my relative what his monthly minimum payment was. The topic of min. payment was not even brought up.

Anyways, the CCS process is very structured.
- work out your net income
- list down daily expenses (excluding debt repayment, min amount etc)
- review & budget for daily expenses (cut back if needed, or even add on)
- work out what is surplus left to payback banks

If there is significant surplus, then CCS cld say you dont need help.

But having a surplus above min payment amount by itself is probably not the criteria. Min payment is only paying off the high interest, not reducing Principal. Besides, I dont think CCS use Min Monthly Amount as a criteria at all.

 

[oceanicmanta]

you mean those are able to service the min payment for the interest rates are not eligible to apply , then its keep paying the interest rates for life ?

no, i am saying the opposite.

I do not think CCS looks at whether u r able to service Min Payment as a criteria to approve or reject.

 

[Izumi8]

But having a surplus above min payment amount by itself is probably not the criteria. Min payment is only paying off the high interest, not reducing Principal. Besides, I dont think CCS use Min Monthly Amount as a criteria at all.

CCS can calculate the estimated monthly min payment based on the total debt size, so there is no need to bring out the topic during counselling.

eg debt size of 80k, for most banks monthly min payment is 3% = 2.4K.
so if interest rate is 2%/month, 1% will go for your principal.

monthly surplus > 2.4K, DMP is not applicable. This is one of the main criteria I think. CCS already emphasized this principle during info talk, only distressed one is eligible for DMP. The DMP scheme is not for anyone who wanted to "reduce their interest"

 

[Jojodespo]

Okay so taking for example someone who has the below debts to settle.

Debt : 60,000

Gross salary : 5,000
Net salary : 4,000
Minimum payments: $2,000

Monthly Expenses
Transport: $150
Food: $500
Utilities: $400
Income tax and property tax : $100
Combined savings with spouse: $300
Other loans e.g car and reno loan: 500 a month
Total: $1,950

Remaining in hand: $50 surplus after settling minimums and loans.

Would they be eligible?

With a DMP, a person will be looking at the following figures to pay in each year, inclusive 3% interest.

Debt with 3% interest per year (60,000)
3 year (9%) : $65,400 / 36 months = $1,816
4 year (12%) : $67,200 / 48 months = $1,400
5 year (15%) : $69,000 / 60 months = $1,150
6 year (18%) : $70,800 / 72 months = $983

Looking at this, I think CCS will propose a 3 or 4 year prepayment plan correct?

 

[Izumi8]

Looking at this, I think CCS will propose a 3 or 4 year prepayment plan correct?

They will likely ask you goto apply DCP first. If after multiple applications failed, then maybe can go for DMP. As you can still sell the car to clear loans, you are not regarded as under distressed state I think.

 

[oceanicmanta]

Okay so taking for example someone who has the below debts to settle.

Debt : 60,000

Gross salary : 5,000
Net salary : 4,000
Minimum payments: $2,000

Monthly Expenses
Transport: $150
Food: $500
Utilities: $400
Income tax and property tax : $100
Combined savings with spouse: $300
Other loans e.g car and reno loan: 500 a month
Total: $1,950

Remaining in hand: $50 surplus after settling minimums and loans.

Would they be eligible?

With a DMP, a person will be looking at the following figures to pay in each year, inclusive 3% interest.

Debt with 3% interest per year (60,000)
3 year (9%) : $65,400 / 36 months = $1,816
4 year (12%) : $67,200 / 48 months = $1,400
5 year (15%) : $69,000 / 60 months = $1,150
6 year (18%) : $70,800 / 72 months = $983

Looking at this, I think CCS will propose a 3 or 4 year prepayment plan correct?

If CCS has evaluated your income & expenses as above, your surplus wld be $2050 per month.

CCS would propose DMP where u repay $2050 per month for the next 29.3 months (60k divided by 2.05k). This proposal is subject to your agreement.

What I am describing is how CCS work out the surplus amount based on your income less expenses and use that surplus amount as the proposed DMP payment amount. Whether they actually put this up as a proposal I would not know.

No point guessing whether CCS will approve or reject or what they will do.

Only way to find out is to talk to them.

 

[Jojodespo]

Oh.. that was a bad example. Maybe without a car loan and no car.

Btw the below example isn’t my case, just using a rough estimate of expenses.

Thanks for clarifying!!

They will likely ask you goto apply DCP first. If after multiple applications failed, then maybe can go for DMP. As you can still sell the car to clear loans, you are not regarded as under distressed state I think.