Debt consolidation Plan - Part 2

[seeklightsoon]

seeking for advices!
I am currently oweing bank 50k total in debts
48k in LML. Plus other bills and stuff. Total 200k debts. Should I go for DCP?

I am holding a professional agent self employed job. Yearly can earn around 100k-300k.

I am facing difficulties to paying off debts this month. due to the commission not so soon coming in. I am not scare I cannot pay off my debts. Just that I need more time to focus on my sales and within 1 year I can clear off.

I have maxed out my credits line. Anyone can advice me which company is the best to go?

not sure if I go for DCP will affect my job. Now very stressful.

If your current income as per your latest Income Tax Assessment is above S$120K annually, you will not be eligible for DCP as the eligibility is for those below S$120K. In addition, DCP only consolidates unsecured credit card balances and credit lines/personal loans across banks. LML loans are excluded.

Options that you may wish to consider:-

a) Speak to the Banks and LML to see if they can restructure your loan with lower monthly repayment for 1 year and thereafter for you to pay back in full.

b) Take up Debt Management Programme offered by Credit Counselling Society (www.ccs.org.sg). You can refer to this forum for details:
https://forums.hardwarezone.com.sg/...-by-credit-counselling-singapore-ccs.5821687/
c) If your CBS report score is still acceptable and disciplined enough, you may try to apply for personal loans with another bank and use the loan to pay off existing credit card balances with high interest rates.

All the best.

 

[seeklightsoon]

may i know for DCP income requirements, do they look at your latest payslip or last years NOA?
once hit 120k, confirm wont qualify??

It varies from banks to banks. Suggest to submit the income document which show that you did not hit $120K annual income.

 

[villan]

It varies from banks to banks. Suggest to submit the income document which show that you did not hit $120K annual income.

based on my current payslip it will have hit 120k. but my last NoA was below 120k.
also my cbs score is GG, is it acceptable for DCP?

 

[c00lguy]

If your current income as per your latest Income Tax Assessment is above S$120K annually, you will not be eligible for DCP as the eligibility is for those below S$120K. In addition, DCP only consolidates unsecured credit card balances and credit lines/personal loans across banks. LML loans are excluded.

Options that you may wish to consider:-

a) Speak to the Banks and LML to see if they can restructure your loan with lower monthly repayment for 1 year and thereafter for you to pay back in full.

b) Take up Debt Management Programme offered by Credit Counselling Society (www.ccs.org.sg). You can refer to this forum for details:
https://forums.hardwarezone.com.sg/...-by-credit-counselling-singapore-ccs.5821687/
c) If your CBS report score is still acceptable and disciplined enough, you may try to apply for personal loans with another bank and use the loan to pay off existing credit card balances with high interest rates.

All the best.

Thanks! The income tax is base on gross income or chargable income?

my gross is above 120k.. but after deducting everything is less than 110k.

a) Banks i always pay min.. LML i always pay on the first month which is 10% interest admin fee. And reloan.
But until cannot pay for this month. As i got income coming in but not so soon.

B) DMP must go for CCS which i attending on the 5 march consumer seminar then they will attend a couseller to me.

C) My CBS not healthy anymore keep on paying minimum sum now only FF Credit rating.

The last resort which i can think of is family and relative. But abit paiseh cuz is because of gambling causes this problem.

But does DMP affect CBS for life? i heard next time if want to loan a big amount for business, bank if see i have a past record of DMP it most lightly be rejected.

 

[iamnotlame]

Thanks! The income tax is base on gross income or chargable income?

my gross is above 120k.. but after deducting everything is less than 110k.

a) Banks i always pay min.. LML i always pay on the first month which is 10% interest admin fee. And reloan.
But until cannot pay for this month. As i got income coming in but not so soon.

B) DMP must go for CCS which i attending on the 5 march consumer seminar then they will attend a couseller to me.

C) My CBS not healthy anymore keep on paying minimum sum now only FF Credit rating.

The last resort which i can think of is family and relative. But abit paiseh cuz is because of gambling causes this problem.

But does DMP affect CBS for life? i heard next time if want to loan a big amount for business, bank if see i have a past record of DMP it most lightly be rejected.

If your gross income is above 120k as per IRAS notice of assessment (NOA), definitely you will not be qualified for DCP. Going through CCS DMP may be the best way forward for you. You do not only have a financial problem but a gambling problem as well. So you need to address the gambling part of your personality as well since you will go back to being in debt even if you clear them with the help of your friends and family if you do not work on your gambling problem.

I do not recommend borrowing from family and friends. It is an easy way out and shortcuts the process of you resolving your issues long term.

All the best!

 

[seeklightsoon]

Thanks! The income tax is base on gross income or chargable income?

my gross is above 120k.. but after deducting everything is less than 110k.

a) Banks i always pay min.. LML i always pay on the first month which is 10% interest admin fee. And reloan.
But until cannot pay for this month. As i got income coming in but not so soon.

B) DMP must go for CCS which i attending on the 5 march consumer seminar then they will attend a couseller to me.

C) My CBS not healthy anymore keep on paying minimum sum now only FF Credit rating.

The last resort which i can think of is family and relative. But abit paiseh cuz is because of gambling causes this problem.

But does DMP affect CBS for life? i heard next time if want to loan a big amount for business, bank if see i have a past record of DMP it most lightly be rejected.

For your LML, you should try to clear them off and avoid going for those that only loan you for 30 days and then you are to pay back and re-loan with another 10% admin fee.. Like that, you are always trapped with a 10% admin fee. Go for those that allows you to loan for a year or two and be disciplined to pay off on timely basis every month until you finish it off.

DMP will in a way, affect your future loan application. However, if you are already facing the crisis now, why worry about the future? Once you clear your DMP, there are ways to rebuild your credit profile over time as well. So it is not a death penalty as once your credit profile improves, there will be banks who are willing to lend you again.

 

[seeklightsoon]

based on my current payslip it will have hit 120k. but my last NoA was below 120k.
also my cbs score is GG, is it acceptable for DCP?

You can try to submit NoA and hopefully the bank will accept it.
I think you can scroll back to some of the past success stories posted where they are able to get DCP approved for FF/GG grade. You may wish to try these banks first since they carry high chances of approval. All the best.

 

[villan]

You can try to submit NoA and hopefully the bank will accept it.
I think you can scroll back to some of the past success stories posted where they are able to get DCP approved for FF/GG grade. You may wish to try these banks first since they carry high chances of approval. All the best.

thanks. will the loan be based on the total amount in the bank statements submitted or will the bank check for the total latest balance before approval?

 

[seeklightsoon]

thanks. will the loan be based on the total amount in the bank statements submitted or will the bank check for the total latest balance before approval?

AFAIK, they will use the bank statements submitted and add 5% buffer for loan disbursement when approved.

 

[villan]

AFAIK, they will use the bank statements submitted and add 5% buffer for loan disbursement when approved.

thanks. if the 5% is not fully used up, will it be returned to me as cash or will it be returned to the bank (to reduce the outstanding)?

 

[seeklightsoon]

thanks. if the 5% is not fully used up, will it be returned to me as cash or will it be returned to the bank (to reduce the outstanding)?

If it results in a credit balances in the banks that have been paid off by your DCP plan, you can call them to request to refund back to you via cheque or transfer based on the Bank's internal policy.

https://www.abs.org.sg/consumer-banking/consumers/debt-consolidation-plan
The ≤5% allowance is mandatory for the first approved DCP loan. It is intended as a buffer against any incidental charges that may be incurred from the time that the DCP loan is approved to when the DCP amount is disbursed to your financial institutions. Any portion of the allowance will be credited or refunded to you by your respective financial institution.

 

[villan]

If it results in a credit balances in the banks that have been paid off by your DCP plan, you can call them to request to refund back to you via cheque or transfer based on the Bank's internal policy.

https://www.abs.org.sg/consumer-banking/consumers/debt-consolidation-plan
The ≤5% allowance is mandatory for the first approved DCP loan. It is intended as a buffer against any incidental charges that may be incurred from the time that the DCP loan is approved to when the DCP amount is disbursed to your financial institutions. Any portion of the allowance will be credited or refunded to you by your respective financial institution.

thank you! by the way, it seems like only Maybank accepts income of 120k. the other banks strictly requires below 120k (max 119,999)...anyone heard of cases where income of 120k is accepted?

 

[villan]

Does DCP affect Corporate Credit Card? will my company issued CC be suspended too?

 

[CeSaRiO]

Hi guys, been a while since I’ve came back to this thread. I first embarked on DCP in 2017 for 5 years. However in 2020 when I lost my job in late 2020, I extended my DCP for another few more years and recently got a job.
Also, I’ve found a partner and I was thinking if getting a place on our own. Was thinking if we could get a Reno loan assuming if I take a HDB loan in the future.
TIA!

 

[olicole]

Does DCP affect Corporate Credit Card? will my company issued CC be suspended too?

Will not affect

 

[c00lguy]

Thanks for the replies guys.. trying to get help from CCS.
Anyway how we get a license as a agent like Edudebt to help out ppl for Debt repayment plan?

 

[villan]

called in to check with MB today, application unsuccessful ...sigh..probably due to GG rating.
the only option left is citi balance consolidation..for income 120k and above.

 

[gwen.t8]

hi all.
Anyone knows if grab card and youtrip card will be cancel upon DCP approval?
TIA

 

[hclee01]

hi all.
Anyone knows if grab card and youtrip card will be cancel upon DCP approval?
TIA

Nope.. these aren't credit cards. Similarly your debit cards are also not affected.

 

[villan]

my DCPs have been rejected probably due to my GG rating.
I also tried calling each bank to covert my balance transfers to personal loan.
So far only SCB allows, other banks CS just immediately say not possible. Anyone have contact of good CS from UOB/Citi/HSBC that can help?