Debt consolidation Plan - Part 2

[1needhelp1]

Would like to check if there are any way that I can reduce the number of years for payment of the DCP so that I can quickly clear it? Anyone has any idea how fast the credit rating improves after getting on the DCP? How would credit report reflect DCP?

 

[1needhelp1]

Hi guys. Does anyone have any bank officer to recommend for DCP? My application for HSBC was rejected even though my rating is AA. And meet BTI. Maybe after they ask to submit payslip it got rejected. Officer submitted only cpf but processing team requested payslip.

Do you still need recommendation? Am on DCP now and would be glad to recommend the SCB bank officer who helped.

 

[Crisisbs]

Understand many bros got their home loan approved while on DCP. How about Term Loan (cash out) from your property while on DCP? Any recent success stories to share?

 

[glann92]

Do you still need recommendation? Am on DCP now and would be glad to recommend the SCB bank officer who helped.

Hi, do you have his contact? HSBC rejected me, i think i really need help right now.

 

[1needhelp1]

Hi, do you have his contact? HSBC rejected me, i think i really need help right now.

Hi, maybe you want to drop me a message and I’ll send you his contact?

 

[flyswoosh]

Yup i mentioned to them before applying.and they also will check your **. But for secured loan, it should be okay.

Hi. I am in a similar situation. I would like to buy a home thru bank house loan while on DCP with AA credit rating. I have served 4.5yrs of DCP and left with 3.5yrs. I am really worried that DCP will affect my bank house loan application. Is it mandatory to inform bank that I am on DCP? Or is it optional? Bank will check our ** nonetheless? Thank you in advance for your advise.

 

[dimitri_can]

Just a word of encouragement for those who are suffering. Took me a lot of courage to write this. I am left with
last 12 months to pay off my DCP. I started my DCP in 2017.

Bank: Maybank
Amount owed: $65076.64
Total to pay back: ~ $1410 x 36 months=$50760, $1390 x 24 months=$33360 (renegotiated with Maybank 2 years back)
Previous credit score: EE
Current score: AA→BB (cos I check credit report every 3 months. LOL)

Interest earned by Maybank=~$19043.36 (29.26% of principal amount)

What did I spend on?
Trips to Japan, buying gifts/souvenirs for colleagues and friends (around $400-$500 just on gifts/souvenirs). Last time, young, dunno how to use money properly. I remembered last time every month will struggle to get calls from the banks, especially UOB.... Now I ban UOB already. Only put minimum sum + $200 so that I can draw money when the other ATMs have a lot of ppl.

DCP was really a godsent. I remembered that I felt so happy that I was finally able to pay off my debts. I was also embarrassed to tell my family/friends that I owe the banks... I only told 3 good friends after the DCP got approved.

Deciding monthly amount to pay
I suggest that you take any amount should be about 20-25% of your monthly take home salary. I was earning about $5000-$6000 every month. As I converted to part-time from full-time and was still teaching full time, after deducting my monthly payment, I still have 75% of salary.

25%-30% will go to financing my future trips, 25% for expenses, the remainder for rainy day.

I will have 3 different bank accounts. One is without ATM card (for rainy day expenses), one is for expenses, one is for paying the DCP.

Once I receive the money to pay off the DCP, I will quickly pay it off, so that 1 less thing to worry about.

Discipline
I think we all started with no discipline to handle money. DCP is a good way to help us manage money better. We must be disciplined enough to say, "I want to get out of this sh*t that I dig myself". Talk to friends or people who you can trust. Seek their advice.

I also began to have an Excel sheet on Google that I started last year on my daily expenses, so that I know how much I spend every month. Nowadays with a smartphone, it is easy to keep track of our expenses. =)

I was also fortunate that I managed to help another friend who also owed the bank to quickly get out from his debts. We all need to start somewhere.

Buying of house in 2020
I decided to buy my house last year and managed to secure a good housing loan from DBS, while using the inheritance that I got from my family's sale of flat. Didn't want to spend money to renovate the house as still in livable condition. The money from the inheritance, I put into insurance (Pruwealth II) for 20 years. Maybank advised me not to redeem the DCP earlier because I have to pay extra $500.


I pray that this post can help all of you who are reading. If you need advice or someone to listen to, please feel free to pm me.

Sincerely,
dimitri_can

After this month, I am 4 months left to clearing my DCP. It has been a long journey, but it has made me learned the importance of saving money and budgeting for the future. I don't dare to say my life has became very good, but at least now I will watch my expediture more. Hope this can help all who are struggling.

 

[dimitri_can]

Hi. I am in a similar situation. I would like to buy a home thru bank house loan while on DCP with AA credit rating. I have served 4.5yrs of DCP and left with 3.5yrs. I am really worried that DCP will affect my bank house loan application. Is it mandatory to inform bank that I am on DCP? Or is it optional? Bank will check our ** nonetheless? Thank you in advance for your advise.

Suggest you to clear a few years first then try, if not the loan amount will be a lot lesser.

When I was on my 2nd year of DCP, the loan amount they gave me was $179k, when I was on my 4th year, the amount increased to $233k.

 

[Shalala-86]

Hi. I am in a similar situation. I would like to buy a home thru bank house loan while on DCP with AA credit rating. I have served 4.5yrs of DCP and left with 3.5yrs. I am really worried that DCP will affect my bank house loan application. Is it mandatory to inform bank that I am on DCP? Or is it optional? Bank will check our ** nonetheless? Thank you in advance for your advise.

I have recently gotta my IPA .. here are my review:
POSB- they trace all my giro payment any late or fail giro they considered it as part of approval.
uob- they has some sort of debt ratio. They thinks mine is over
Citibank- they don’t accept DCP

I got my final approval from SCB.
I’m on DCP, my partner is not. Both our TDRS stand at 13%, credit rating both AA. He has some loans but we repay diligently.
hope this help! I was very gan chiong too! But luckily I got my IPA. Good luck!

 

[seeanncy]

Hello all! I'm very, very new here and I am a noob with all this banking & financial terms. Came across this forum when I read up on DCP but only to find out 1 of the criteria is the amount you owe should be x12 of your salary.

I have a lot of CC, personal loans and balance transfer debts - about $35k total. And my monthly pay now is $4.5k. Some of these loans I've had them since 6-7 years ago and I am just bad, bad at managing my own finances. I only managed to close 2 personal loans with hsbc and citi. But i still owe citi cc payments. Each month, i am only paying the minimum as it's well, the minimum i can cover (every month $2k gone for the min payments) . If i have extra will pay extra. But when i need, i will use the card again before the bank has the chance to deduct it.

Seriously considering applying for DCP but i dont think i am qualified now.. Can anyone suggest what else I can do?

Fyi, i have cc payments with citi, maybank. MB is the worst.. I have cc, personal loan and balance transfer,

Appreciate any advise you can give me, in layman terms if you can thank you so much

 

[Toiletazwc]

Hello all! I'm very, very new here and I am a noob with all this banking & financial terms. Came across this forum when I read up on DCP but only to find out 1 of the criteria is the amount you owe should be x12 of your salary.

I have a lot of CC, personal loans and balance transfer debts - about $35k total. And my monthly pay now is $4.5k. Some of these loans I've had them since 6-7 years ago and I am just bad, bad at managing my own finances. I only managed to close 2 personal loans with hsbc and citi. But i still owe citi cc payments. Each month, i am only paying the minimum as it's well, the minimum i can cover (every month $2k gone for the min payments) . If i have extra will pay extra. But when i need, i will use the card again before the bank has the chance to deduct it.

Seriously considering applying for DCP but i dont think i am qualified now.. Can anyone suggest what else I can do?

Fyi, i have cc payments with citi, maybank. MB is the worst.. I have cc, personal loan and balance transfer,

Appreciate any advise you can give me, in layman terms if you can thank you so much

Dcp need a min of 12x your 4.5k, meaning you have to have a outstanding debt of 54k for you to apply. However, it doesn't mean that once you hit 54k, they will approved, subject to individual bank approval.

You can try DMP instead, it has lower interests rate and the approval is almost 90% by using the 2k you spent on the min payment with the amount you own. Just that you won't have any credit facilities avaliable for the next 5 to 8 years depend on your duration.

Different between dcp and dmp, dcp at least give you a credit card with 1x your salary throughout the dcp duration.

Your situation should go for DMP as the interests lower. But you have to endure maybe 5 to 8 years without CC or any loan from bank. You can refer to the debt management programme thread for more info

 

[seeanncy]

Dcp need a min of 12x your 4.5k, meaning you have to have a outstanding debt of 54k for you to apply. However, it doesn't mean that once you hit 54k, they will approved, subject to individual bank approval.

You can try DMP instead, it has lower interests rate and the approval is almost 90% by using the 2k you spent on the min payment with the amount you own. Just that you won't have any credit facilities avaliable for the next 5 to 8 years depend on your duration.

Different between dcp and dmp, dcp at least give you a credit card with 1x your salary throughout the dcp duration.

Your situation should go for DMP as the interests lower. But you have to endure maybe 5 to 8 years without CC or any loan from bank. You can refer to the debt management programme thread for more info

Hi! Thank you so much.

When you say 5 to 8 yrs without any bank loan. Does it apply for personal loan only or for housing and car loans as well? How about HDB loan? Will it be affected?

Will definitely read up on the debt mgmt prog thread. Thank you!

 

[Toiletazwc]

Hi! Thank you so much.

When you say 5 to 8 yrs without any bank loan. Does it apply for personal loan only or for housing and car loans as well? How about HDB loan? Will it be affected?

Will definitely read up on the debt mgmt prog thread. Thank you!

Most of the banking facilities. Housing loan wise subject to individual bank approval as well. Those personal loan and credit facilities wise 99% will be rejected when you are on DCP.

I might be wrong but for your $35k total outstanding debt throughout all the banks, with a monthly payment of $2k, might be 3 to 5years can clear already as their interests rate is lower.

 

[seeanncy]

Most of the banking facilities. Housing loan wise subject to individual bank approval as well. Those personal loan and credit facilities wise 99% will be rejected when you are on DCP.

I might be wrong but for your $35k total outstanding debt throughout all the banks, with a monthly payment of $2k, might be 3 to 5years can clear already as their interests rate is lower.

Oh the $2k monthly payment is across all cards, balance transfer and loans. Like eg. For Card A i only pay the min $50 each month. Loan A pay min $100.

 

[Toiletazwc]

Oh the $2k monthly payment is across all cards, balance transfer and loans. Like eg. For Card A i only pay the min $50 each month. Loan A pay min $100.

Yup, you would be able to clear that amount with dmp within 3 to 5years if you are okay without the banking facilities needs as it's is basically the same as dcp just without the credit card (limit to 1x of your monthly salary).

Most of us took Dcp due to our job security or is considering housing loan from bank

I might be wrong but that's to my understanding between dcp and dmp

Both dcp and dmp would stay at your credit report for 3years after you cleared the outstanding amount so you might need to take note of this as well

Hope it helps!

 

[seeanncy]

Yup, you would be able to clear that amount with dmp within 3 to 5years if you are okay without the banking facilities needs as it's is basically the same as dcp just without the credit card (limit to 1x of your monthly salary).

Most of us took Dcp due to our job security or is considering housing loan from bank

I might be wrong but that's to my understanding between dcp and dmp

Both dcp and dmp would stay at your credit report for 3years after you cleared the outstanding amount so you might need to take note of this as well

Hope it helps!

I see..

Okay, thank you so much! But I am worried about not being able to get housing loan if under dmp. But, i'll weigh the pros & cons

I also thought of getting loans from LML previously to settle my card debts but this method i think i'll be expanding my debt instd

 

[Jcc3112]

Seeking advice here, currently I have debts with both banks and moneylenders. My outstanding with banks have not exceeded 12 mths, so I was thinking if it is worth getting another loan from bank to cover moneylender then go for dcp, or just go straight to dmp?

 

[Toiletazwc]

Seeking advice here, currently I have debts with both banks and moneylenders. My outstanding with banks have not exceeded 12 mths, so I was thinking if it is worth getting another loan from bank to cover moneylender then go for dcp, or just go straight to dmp?

Dcp only consolidate all bank loan, CC,
Dmp I think moneylender as well.

 

[Toiletazwc]

I see..

Okay, thank you so much! But I am worried about not being able to get housing loan if under dmp. But, i'll weigh the pros & cons

I also thought of getting loans from LML previously to settle my card debts but this method i think i'll be expanding my debt instd

Some of the member here manage to get their housing loan from some banks as well, you can go read through it and pm them. Worst come to worst get hdb loan first, then halfway after your dcp cleared port over to bank loan.

Nvr get loan from LML uh, interests is ridiculous. Been there, done that.
Your current $2k for all your debts should be more than enough if your dmp approve for a duration of 3 to 5years.

 

[flyswoosh]

Suggest you to clear a few years first then try, if not the loan amount will be a lot lesser.

When I was on my 2nd year of DCP, the loan amount they gave me was $179k, when I was on my 4th year, the amount increased to $233k.

Thank you for the tips.