Debt consolidation Plan - Part 2

[nervousanxiouskek]

Oh cause it’s above 12 times my bti thing?

Suspended? If u are paying every mth, why would they suspend u?

just becareful if over $15k debt, they will file for bankruptcy…

 

[seeklightsoon]

Hi all can I ask, if I take up DCP, can I get fired from my job? I’m not working in finance or banks. But there’s this clause in my employment contract that I can be terminated if “you become bankrupt or make any arrangement or composition with your creditors.” Technically if I take up DCP I am making an arrangement with my creditors right? Is there any people on this forum that got fired from taking up dcp?

Typically, this refers to the Scheme of Arrangement, which is the Debt Repayment Scheme administered by the Official Assignee for most of the firms which has this clause in the employment contract. Suggest that you can check with your HR on this.
https://singaporelegaladvice.com/law-articles/scheme-of-arrangement
https://io.mlaw.gov.sg/debt-repayment-scheme/about-debt-repayment-scheme/

Usually, DCP does not fall under this definition as this is a commercial loan that you are taking with FI to consolidate your debt for ease of repayment at a lower rate, which is subjected to FI's approval.

Also, if you have outstanding unsecured balances from banks that exceed 12 months of your monthly income, your unsecured facility such as credit card will be suspended, you can continue to make prompt minimum balance and there should not be any action taken by banks other than the suspension of facilities and that you cannot take on additional new unsecured facilities.

 

[shoeshoe29]

Hi friends,

Currently, I am having a debt consolidation loan, with another bank where the interest rate is quite high, I am planning to refinance my DCP with Standard Chartered which offers 6% cashback which I could use to pay penalty fee for my current DCP bank for early terminations. My question for assistance here is, SCB says will pay total outstanding amount if the loan first and the cashback will be expedited for me so I could pay the early settlement penalty. Have anyone refinanced their DCP loan with SCB before, how many days they will took to pay the cashback amount, this is because I did not have enough money to pay the early settlement fee first, I do not wants to pay two DCP payments for both banks at the same time (due to the late of cashback payment, as old DCP will fully closed only after all amount including the penalty fee received by them), Please could you help to answer my question, thank you very much for your help.

Hello, did you manage to expedite the scb cash rebate? I'm facing same situation now.

 

[shoeshoe29]

Hi all, I currently have a Dcp with HSBC since 2021. As my partner has not been working for past 6 months, I've been using up my savings that i managed to save. I refinanced to Scb for lower interest rates and longer tenure as HSBC was unable to offer loan extension.

However, the scb sales promised that the cash rebates will cover for the termination fees which then I submitted the application. It was approved last week and the cc and dcp accounts were opened in SCB. however the redemption with HSBC was not successful as the redemption amount is short of the penalties amount.

The cc amount that got transferred to scb is only 4.7k but my outstanding hsbc bill was 5.4k. Does it mean I've messed up the whole dcp schedule and now I've to pay for 2 dcp loans while waiting for the cash back?

 

[anonymous19]

Hi all, normally how long does hsbc approve their application? Mine has been processing from 28th aug till now and no answer. Till i call on 3th sept and they ask me again my income during 2019? Then they say will let me know by this week. Normally seems like approval quite fast right? Does it means i am getting high chances of rejection?

 

[anonymous19]

OMG!Finally got approved by HSBC. No phone calls only an sms. Any idea what I should expect other than waiting of the letter?

 

[Doomas72]

Hi all, my salary exceeds the requirement for DCP. Can I still apply for DCP? Or am I left with DMP under CCS?

 

[hclee01]

Hi all, my salary exceeds the requirement for DCP. Can I still apply for DCP? Or am I left with DMP under CCS?

Are you referring to that your annual income is above S$120K? If so, you will not be eligible for DCP. You may consider DMP instead.

 

[Sweetlilthingsxx]

Hi, can I check if anyone knows if the bank will ask to pay outstanding immediately once they suspended your cards ? Currently the outstanding the balance are loans and installments. Thank you

 

[Doomas72]

Hi all, did a self review. I owe a total of about 450k in unsecured credit and my last gross annual salary was about 177k. Which option is best for me, DCP, DMP or bankruptcy?

 

[Doomas72]

dcp is out of question as its only for under 120k income
try dmp then drs then bankrupcy....

how did u get into such debt?
able to negotiate or sell stuff to get the debt load down for a higher chance of approval for dmp program?

alternately, if u own private property, u can mortgage it and take a loan on it to pay debt to reduce interest since its secured?

as for which to choose, its better to get DMP unless ur income is from ur own business. Because drs/bankruptcy could be a cause for job termination for some jobs, whether its civil service, banks, govt proj that require security clearance and many more

Got into this jam because I was dumb and fed my gf's gambling habit. I don't have any private property to dispose of unfortunately. There is a max debt level for DMP is it? I'm actually an alumni of DMP haha

Looks like DRS is not an option. Read that it's for unsecured debt not exceeding $150k and it's an option explored prior to involuntary bankruptcy.

I'm actually in the civil service and when I spoke with my HR, they didn't tell me about termination. Think I better confirm with them again.

Thks for the advice bro. I'll try DMP first

 

[Doomas72]

So looks like bankruptcy is the only option left for me?

Also still under contract so wonder if bankruptcy will be cause for non-renewal.

 

[nktsxxx23]

Just got my DCP approved earlier this week! Thought to share my experience here for anyone that's going through the application phase.

Tried around with a few banks, sharing my experiences with them : SCB, Citi, DBS, SCB and MB. Approved by HSBC.

My CBS score is HH (1681), total debt around $40k, monthly income abit above $3k.

SCB:
- Most helpful out of all the banks, CSO really communicated and helped a lot
- Rejected though. Most likely due to my payslip having my bonus inside
- Was told HH rating is not a death sentence, they look at many other factors too.

Citi:
- Was told to not try to apply as my score was HH, try to bring up the score first.
- I think Citi cares a lot about the CBS rating, heard most of the HHs got rejected

DBS:
- Literally couldn't apply with a HH rating, my advice is to not bother unless you have a solid CBS rating

MB:
- They said HHs are approved quite often, can try if your score is lower
- Didn't really get too far as HSBC already approved my application by then

HSBC:
- Approved my application despite HH rating
- They asked for 3 months payslip and CPF contribution statements. BUT they only take your BASE SALARY from your payslip. My CPF statement shows my NOA is ABOVE my debt amount as it includes my bonuses, but CSO assured they only look at payslip, and doesn't matter if your payslip has your bonus in it.
- Interest is definitely one of the higher ones, but I will most likely refinance after 6months - a year

Some advice for those still trying :
- NEVER miss minimum payments, heard this is one of the big no-nos for banks, esp if you miss a payment with the bank you're applying for the DCP with
- If your CBS score is HH (or the lower end of HH), either try applying w Maybank and HSBC. If not, keep paying a bit more than your minimum. Eventually your score will go up.
- Buy your CBS report once every couple of months, on the 17th of the month. If the score is good, use it to apply.
- Other than HSBC, I would recommend passing payslips that don't show your bonus. Basically keep your yearly income as low as possible. As long as your debt is still 12x of your month income.

Glad to finally have my DCP approved!! Good luck to anyone that's looking to apply or is in the application process!

 

[ADG0692]

Double check those that having DCP plan with DBS bank, it is mentioned in the approval letter that the monthly payment will auto debited automatically from saving account on 20/09/2024. But I checked there is no deduction and auto debited to the DCP loan from my account. May I know whether I need to do the GIRO arrangement or DBS bank will just automatically debited from my saving account monthly?

 

[xteruyo]

Double check those that having DCP plan with DBS bank, it is mentioned in the approval letter that the monthly payment will auto debited automatically from saving account on 20/09/2024. But I checked there is no deduction and auto debited to the DCP loan from my account. May I know whether I need to do the GIRO arrangement or DBS bank will just automatically debited from my saving account monthly?

Iirc, dbs dcp deduction is on 9th of every month (might subject to changes). Note if 9th falls on weekend or PH, it will be deducted on subsequent weekday.
Deduction for dcp repayment is automatically set up.
For doubt, please write back to double confirm with your CSO.

 

[newjeansnim]

Hi guys,

Would like to check if anyone has experience in applying bank loan in the middle of DCP?

So as far as i know, during DCP repayment period, you can apply for another bank loan after your total unsecure loan is under 8 x your income. And i checked from my CBS report, my total unsecure loan is under 8 x my income.

However, i just tried to apply loan at HSBC and SC, but both rejected me.

Not sure if i am missing out something here.

 

[xiaonajia]

I didnt.. my refinance was dbs. Am surprised this happen tho they were super efficient in all, case handling, response, check in on them tomorrow…

can I check when you refinance with another bank, does the new interest rate get retrospectively reflected based on the original principal amount or outstanding amount?

For example, you owe 100k at start of DCP at 8%/year for 5 years.

• Total amount repayable
  SGD 121,658
• Monthly repayment
  SGD 2,027.64

After 12 months, you decide to switch to another bank for lower interest of 5%/year.
At this point, you have paid $2027.64*12=$24331.68, leaving a total payable of (121 658-24331.68) = $97326.32 [but this is at interest rate of 8%/year!)

How does the new bank apply the new 5%/year?

Does it apply retrospectively the 5% at the start of your DCP on the amount of 100k?
Or is the 5% applied on the amount left for the remaining of the 4 years without the 8%/year interest? How does this even work?

 

[xteruyo]

can I check when you refinance with another bank, does the new interest rate get retrospectively reflected based on the original principal amount or outstanding amount?

For example, you owe 100k at start of DCP at 8%/year for 5 years.

• Total amount repayable
  SGD 121,658
• Monthly repayment
  SGD 2,027.64

After 12 months, you decide to switch to another bank for lower interest of 5%/year.
At this point, you have paid $2027.64*12=$24331.68, leaving a total payable of (121 658-24331.68) = $97326.32 [but this is at interest rate of 8%/year!)

How does the new bank apply the new 5%/year?

Does it apply retrospectively the 5% at the start of your DCP on the amount of 100k?
Or is the 5% applied on the amount left for the remaining of the 4 years without the 8%/year interest? How does this even work?

The 5% buffer is no longer valid and it will be exact as O/S with DCP bank 1.

 

[xteruyo]

Hi guys,

Would like to check if anyone has experience in applying bank loan in the middle of DCP?

So as far as i know, during DCP repayment period, you can apply for another bank loan after your total unsecure loan is under 8 x your income. And i checked from my CBS report, my total unsecure loan is under 8 x my income.

However, i just tried to apply loan at HSBC and SC, but both rejected me.

Not sure if i am missing out something here.

What kind of bank loan? Edu? Personal? Motor? Housing?

 

[jinsatkilife]

The 5% buffer is no longer valid and it will be exact as O/S with DCP bank 1.

if outstanding at new dcp bank is same as bank 1, then what's the point of "refinancing" when the interest rate won't even affect the O/S?

doesn't that defeat the point of refinancing to get cheaper rates or O/S?