Debt consolidation Plan - Part 2

[Warrenator]

Seeking for advise

What will happen to debtor if we default the monthly payment to DCP ? What is the potential outcome if we fail to pay ? Currently my DCP was defaulted for 3 months and the Bank was telling me that they will cancel my DCP and I will have to pay all outstanding at one goal

 

[seeklightsoon]

Seeking for advise

What will happen to debtor if we default the monthly payment to DCP ? What is the potential outcome if we fail to pay ? Currently my DCP was defaulted for 3 months and the Bank was telling me that they will cancel my DCP and I will have to pay all outstanding at one goal

It is no difference for someone who has defaulted on the credit card payment. The bank will proceed with various actions to collect back the full debt amount when the credit card account (or in your case DCP account) is closed. These may include bankruptcy actions, writ of seizure, etc. Suggest for you to have a word with your DCP bank to see if they can restructure the loan to a longer tenure so that you can pay a lower monthly instalment to see you through during this period.

 

[Toiletazwc]

It is no difference for someone who has defaulted on the credit card payment. The bank will proceed with various actions to collect back the full debt amount when the credit card account (or in your case DCP account) is closed. These may include bankruptcy actions, writ of seizure, etc. Suggest for you to have a word with your DCP bank to see if they can restructure the loan to a longer tenure so that you can pay a lower monthly instalment to see you through during this period.

I've a friend in a similar situation as you 2years back, in the end she went to ccs and was referred to drs. The payment was lowered due to lower interests rate but she didn't mention whether the drs's fee and the dcp penalty fee was included anot. All the conversion from dcp to drs done within 2month period.

 

[Faith2Happy]

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?

I got my DCP at 136K with SCB @ 2018 for 60 months

 

[villan]

I got my DCP at 136K with SCB @ 2018 for 60 months

your income was 136k?

 

[Cattie_]

Hi all, I need some advice.
My credit rating dropped from AA to GG recently, just when I finally decide to face my issues of bad money management and decided to apply for DCP to control my financial situation.

My BTI is above 12x, currently around 15x to 16x of my monthly basic. (If take into account if my bonuses, then it is around 13x.

My SCB officer checked for me and said that she could not proceed with my DCP application due to GG rating. I've emailed the HSBC officer who said that he will submit my DCP application for me, but subject to bank's approval.

My spouse and family does not know about it and I do not intend to let them know.

Should I try applying for DCP from other banks one by one, or stop applying for DCP and try to pay off my smaller outstanding credit card bills, and download my credit report in another 3 to 6 months?

Or should I go for DMP?

Appreciate and thanks in advance, for all of your advice.

 

[Ducklover]

Hi does anyone knows if bank staff can apply for Dcp? Does being on DCP will lead your employer to fire you?

 

[Cattie_]

DCP

Hi All,

I have been a silent reader for months and looking at all the advice which people have been providing.

From the start of COVID I was in a very bad financial situation, I was in debt of 20K+ and adding up to all those debts was me facing a salary reduction of 50%. Thus, I ending up heavily reliant on Credit Cards and even balance transfer to help me tie through the hard times. Fast forward to Jan 2021, I had accumulated more than 41k in debts. Although I managed to get a new job but wasn't able to keep up with the minimum payment for all the credit cards. I started to panic and didn't know what to do. That was when I learnt about DCP through much research and found out about this forum and all the kind advice that everyone has been sharing.

I must say it wasnt an easy journey to even apply for DCP. My credit score was HH and BTI 14k as of Jan 2021. I tried applying for Standard Chartered and UOB and both rejected me. And eventually i i almost gave up, i thought to myself that looks like im just going to be in debt till i die in that case. That was when i spoke to a Citibank DCP representative and she advised me to try make all the monthly minimum repayment for at least 2 months consecutively to enable myself to have a better rating. Unfortunately, she wasnt in the job anymore thus i didn't have confidence applying with her.

Fast forward to March i went to check on my rating and it really dropped not by a lot but i was at the lower end of GG rating, and i approach HSBC and submitted my application on 05/03/2021. And as of today, i just received the good news that my loan application succeeded! Finally i am able to breathe and just need to be discipline to go through the 5 years payment and i will be done for good.

If anyone is looking to aplpy for DCP loan i really highly suggest HSBC especially if your rating is GG to FF. You can contact her and she would be able to assist you!

HSBC Rep: Hazel
Phone. 65 6658 0945

I wish all of you the best in your application, do not give up!

I will try to contact Hazel! I'm pretty desperate and getting sleepless nights after I realised my credit rating is GG.

Though it is now 2022, but I hope HSBC can approve my DCP. (Case by case basis usually)

Or I may just try to pay off some smaller outstanding credit card bills before enquiring my credit report 3 months later.

Many thanks.

 

[PanPanP]

I will try to contact Hazel! I'm pretty desperate and getting sleepless nights after I realised my credit rating is GG.

Though it is now 2022, but I hope HSBC can approve my DCP. (Case by case basis usually)

Or I may just try to pay off some smaller outstanding credit card bills before enquiring my credit report 3 months later.

Many thanks.

Hi Cattie, i do not have much experience with DCP cos i DMP from the start. Just for your reference, my friend tried maybank about 4 years ago and managed to get DCP on HH rating.

I can understand the stress as my family members do not know about my debts during DMP over the 7 years. However don't worry because you can still try DMP as last resort. DMP is easier to get in but i feel that DCP will be better since there will be a credit card with 1 month income limit and only need to pay to one bank during DCP.

 

[Cattie_]

Hi Cattie, i do not have much experience with DCP cos i DMP from the start. Just for your reference, my friend tried maybank about 4 years ago and managed to get DCP on HH rating.

I can understand the stress as my family members do not know about my debts during DMP over the 7 years. However don't worry because you can still try DMP as last resort. DMP is easier to get in but i feel that DCP will be better since there will be a credit card with 1 month income limit and only need to pay to one bank during DCP.

Thank you for your reply!
I think all of us have experienced this, and to be honest I've only myself to blame.

But I do hope to get a chance to stop this debt issue from snowballing with DCP or last resort, DMP. DCP is definitely the better of the both, as paying to one bank will be much easier...

Yes, it is so stressful because we have to keep our family in the dark. I've linked up with the HSBC officer (not Hazel) and the officer is nice as well, and I'd guiding me through on putting up my DCP application.

Fingers crossed.

 

[ReachingForTheStar]

Seeking for advise

What will happen to debtor if we default the monthly payment to DCP ? What is the potential outcome if we fail to pay ? Currently my DCP was defaulted for 3 months and the Bank was telling me that they will cancel my DCP and I will have to pay all outstanding at one goal

i had some worry about repayment when ** started (got paycut) so i ask my HSBC officer whether i can default 1-2 payment. they firmly told me cannot and if i failed to pay any installment, they will cancel my dcp and request me to pay balance in full. in the end luckily my paycut did not continue and i havent fail to pay so far. from experience dcp is really the last step before bankruptcy. at this stage dont try anything funny otherwise the step failure is really bankruptcy

Hi does anyone knows if bank staff can apply for Dcp? Does being on DCP will lead your employer to fire you?

think ur bank wouldnt know if youre already a bank staff. unless ur employer do periodic check on ur credit report.
if ure not currently bank staff, i think it'd be difficult to land any job that checks your credit score.
for instance, i heard MBS do very through checks on employee's financial background, including credit report etc

 

[Faith2Happy]

Yes, total income include bonus around 136K

 

[villan]

Yes, total income include bonus around 136K

thanks. now it seems like 119,999 is the max. even $1 more (ie. 120k), they rejected me without even applying for it

 

[Fayew123]

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!

Hi Wanna check, besides the above 3 banks mentioned. may i know which bank have you applied for home loan? I am on dcp and pay on time but spouse is not. TDRS at 6 %- 8 % and both credit rating AA. He has no loans. Do you know what is the chances? which bank would you recommend? Possible to advise any contact fr the bank you got the loan? Thank you.

 

[noelle18]

You can apply at Citibank. I got mine approved.

 

[Shalala-86]

Hi Wanna check, besides the above 3 banks mentioned. may i know which bank have you applied for home loan? I am on dcp and pay on time but spouse is not. TDRS at 6 %- 8 % and both credit rating AA. He has no loans. Do you know what is the chances? which bank would you recommend? Possible to advise any contact fr the bank you got the loan? Thank you.

Hi,
Kingly PM me and I can pass you my mortgage broker to help to check with all the banks. Good luck and update me with your outcome!

 

[Shalala-86]

You mean mortgage loan? I was told they don’t take DCP applicant.

 

[Fayew123]

May i know which bank don't take DCP applicant?

 

[Fayew123]

You can apply at Citibank. I got mine approved.

HI

You can apply at Citibank. I got mine approved.

HI Can i have the contact who assist on the mortgage loan? Just want to check, is your joint applicant aware that you are on DCP? or will the bank reveal to your partner when apply for mortgage loan?

 

[Lostsheep86]

Hi there, can anyone advise how long can credit card application be aporoved after DMP completed? Thanks.