Debt consolidation Plan - Part 2

[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

 

[shanz80]

Totally agreed that DCP is godsend. Same as u, once got payday I faster settle it and other payments as well. So that won’t kenna any 追魂电话。

 

[dimitri_can]

I think most important, you must be comfortable with the payment schedule. If you miss a payment for some jia liat reasons, at least you have your spare cash (that you save previously) to help you to tide through... I think out of all the banks, my experience with DBS was the best. They waived 2 months of interest then to help me out. The other banks all didn't waive.

 

[Otokiru]

anyone on DCP plan with Citibank? Can check if u are able to topup Grab with the CC? somehow mine got decline... called up Citibank, they say recently Grab merchant code for topup changed to Cash advance, thus they block it...

 

[Dot.simila]

Sorry to hear that your officer is not "helpful". Previously, I assured the officer that I will take care of the LML myself and I will keep to the DMP plan and they went ahead to process for me. I then struggle to repay the LML within a year. Maybe you can see if you can settle privately with LML and ask them to go ahead with the DMP. Thereafter, you may wish to explore to see ways how you can repay the LML (e.g. taking part time jobs or asking your relatives to give you a short term loan to tie u over?)

Hi seeklightsoon,
Can i ask after you settle the LML after a year, any changes on the existing dmp payment you are in?
I have submitted a review to CCS that can come up with dmp after I adjusted the expenses and negotiated with the 2 LML on the extended instalment payment. Been 2 days, haven't got a reply from them.

 

[seeklightsoon]

Hi seeklightsoon,
Can i ask after you settle the LML after a year, any changes on the existing dmp payment you are in?
I have submitted a review to CCS that can come up with dmp after I adjusted the expenses and negotiated with the 2 LML on the extended instalment payment. Been 2 days, haven't got a reply from them.

While I did declare that I have LML, i have informed them that I will settle it with assistance from family. As such, my DMP did not take into any consideration of any payment to LML. From Day 1, my DMP instalment plan was computed based on the excess funds after the expenses. The expenses did not include LML payment. As such, there is no change in my DMP payment plan at all since it started.

 

[Dot.simila]

While I did declare that I have LML, i have informed them that I will settle it with assistance from family. As such, my DMP did not take into any consideration of any payment to LML. From Day 1, my DMP instalment plan was computed based on the excess funds after the expenses. The expenses did not include LML payment. As such, there is no change in my DMP payment plan at all since it started.

Oh thats another way. I didnt figure out this earlier.
Update, they just got back to me, 2nd phone session will be arrange on next week.

 

[jaycutler]

hello guys, been a silent reader for this thread.

normally take how long to approve? applied uob and maybank on 25 feb, until now no news from them

 

[StormySkiesNRainbows]

hello guys, been a silent reader for this thread.

normally take how long to approve? applied uob and maybank on 25 feb, until now no news from them

Two weeks or less, you can call them to check. All the best.

 

[nlzh91]

How is everyone doing! Any interesting things to share? How’s your DCP doing for you? Feeling less financially burdened, or Isit harder to manage expenses?

I managed to refinance with a much lower rate with HSBC! Just received the msg that my DC has changed

Hi jojo, can pm me which bank approved your reno loan while on dcp, thanks

 

[IwanttokillUML]

Hi guys and gals,

I want to check what to do next.
My DCP with DBS was approved earlier this month and I also see that they have paid off the other banks I owe.

Question:
Can I now call up those banks to close all my Credit Card accounts?
Or it will all be shut down automatically?
I understand that the credit / loan accounts will be terminated upon DCP but I want to have a clean slate and take this chance to cut away all other credit cards and accounts. Please advice. Thank you.

 

[Gohdelvin]

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!

 

[Otokiru]

Hi guys and gals,

I want to check what to do next.
My DCP with DBS was approved earlier this month and I also see that they have paid off the other banks I owe.

Question:
Can I now call up those banks to close all my Credit Card accounts?
Or it will all be shut down automatically?
I understand that the credit / loan accounts will be terminated upon DCP but I want to have a clean slate and take this chance to cut away all other credit cards and accounts. Please advice. Thank you.

call each of the bank to cancel the CC and refund excess amount...

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!

take note, when u have online hsbc account, make sure ure able to see your DCP account in there, else u need to manually call the CSO and ask them to add the DCP account into your hsbc account...

then when along the future, if u make full repayment, or switch bank for DCP, u need to manually go down the branch to sign a stupid form... then u need to keep call CSO and update them about it...

then the excess amount, you wait long long like me after 8months and counting still cannot withdraw out... i already email to MAS and MAS send email to them and ask them to respond to me within 15 biz days... i still haven heard from them, and they left 5 biz days to respond...

 

[five5five]

Hi expert out there,

I have debt of less than 12x of my salary. i only reach 10x of my salary and unable to apply DCP. Is there anyway I can get one DCP. I am utterly need it.
Please advise and thank you.

 

[roxyyy]

Hi all,

I've been a silent reader ever since i applied for my DCP with SCB.
Just wondering anyone can advise on how long does the approval take?
it has been 7 working days already (fingers crosssssed)

also, what are my options should i get rejected?

Many thanks in advance!

 

[Stressful_Rawker]

Hello!! Would like to check if anyone here whose on DCP managed to get IPA/Bank loan for home successfully? Whether single or joint applicant.
Thank you!

 

[creatorzz]

Which bank?

Hi all,

I've been a silent reader ever since i applied for my DCP with SCB.
Just wondering anyone can advise on how long does the approval take?
it has been 7 working days already (fingers crosssssed)

also, what are my options should i get rejected?

Many thanks in advance!

Hello!! Would like to check if anyone here whose on DCP managed to get IPA/Bank loan for home successfully? Whether single or joint applicant.
Thank you!

application typically takes up to 14 days. your CSO will update you, if not give them a call! Good luck.

For Home Loan, i've got HLE approved with HDB.

 

[haichijia]

anyone try credit culture? easier to get approved? i cant get DCP as my loan not x12 times

 

[seeklightsoon]

anyone try credit culture? easier to get approved? i cant get DCP as my loan not x12 times

You may wish to consider this one as well:
https://minterestmoney.com/

 

[roxyyy]

application typically takes up to 14 days. your CSO will update you, if not give them a call! Good luck.

For Home Loan, i've got HLE approved with HDB.

Thanks for the info bro, just to update i got mine approved by SC [Credit Rating BB Debt was 11.something X added interests and charges 12.something X.

Just to share my journey a little, My SC Rep was extremely helpful in advising what to submit and my queries to future home and car loan. I submitted my credit report, payslips and NOA, along with the latest bank statements and CC bills(not more than 3 months).
According to my SC rep, the approval was gotten 24 hours after the application and funds was disbursed to settle all the outstanding from the 7th day after application.

As my journey is still ongoing, i'm happy to share more including my helpful SC rep if anyone is interested