Debt consolidation plan moneylender; with a single financial institution

 

Taking loans from different financial institutions is an excellent idea until you have to repay them in multiple installments.

But what if there is a way to aggregate your loans with a single financial institution and make monthly repayments once?

You can do this by working with a debt consolidation plan moneylender. Read on to find out how it works.

 

What exactly is meant by the term "debt consolidation plan moneylender"?

A debt consolidation plan, also known as a DCP, is a type of debt refinancing strategy that combines all of the borrower's existing loans into a single new loan to be paid to just one financial institution.

This policy covers loans from various financial institutions, such as banks and private moneylenders, among others.

People who take out loans from different banks are typically obligated to repay each loan in the order in which it was received.

You can, however, consolidate all of your unsecured loans into one payment by applying a debt consolidation plan with a money lender who specializes in such plans.

With the ease of use, the debt consolidation plan moneylender also provides several other benefits.

For example, this kind of plan provides better interest rates, which can assist in reducing the stress caused by your financial situation.

In addition, it provides a longer loan tenure, which means you will have additional time to repay your financial obligations.

When you consolidate all your loans into a single payment plan, you will save yourself the stress of keeping track of the various deadlines and payments for your loan repayments.

One of the four primary categories of personal loans available in Singapore is the debt consolidation plan. The remaining three options are personal loans with an installment payment plan, personal lines of credit, and balance transfers.

Much like the debt consolidation plan, personal loans with balance transfers involve combining various debts into a single account, after which they can be managed more efficiently.

However, the primary distinction is that you should consider a debt consolidation plan only if your total debt exceeds 12 times the money you bring each month.

 

How debt consolidation plan moneylender operates

The first thing to understand about debt consolidation loans in Singapore is that only unsecured credit facilities are covered. This covers personal loans, credit card loans, and personal lines.

Singaporeans and permanent residents become eligible for this program when their monthly debts exceed 12 times their monthly income.

When you apply for this loan program, the bank or registered moneylender provides you with funds to cover your bills. The funds include incurred expenses.

The bank will pay an additional 5% of the total amount paid to consolidate debts for first-time applicants.

This additional fee will cover any expenses incurred while processing your application for debt consolidation. The repayment is made directly to the lending institution.

After settling your debts, you will begin making payments on a single loan with lower interest rates.

The duration of a consolidated strategy is typically lengthy. This not only gives you more time to repay your debt but also allows you to make smaller monthly payments.

The purpose of the loan repayment plan is to assist Singaporeans in paying off their enormous debts and improving their credit scores.