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Low Interest Loans For Debt Consolidation – Credit 21 Pte. Ltd is a licensed moneylender (License No. 51/2022) registered with the Register of Moneylenders (S/No. 37) of the Ministry of Justice, Singapore.
However, you don’t have to struggle with all these loans. Instead, you can combine them so that you can manage your payments.
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Continue reading this article to learn what debt consolidation loans are, how debt consolidation loans work, and how much you can borrow.
Debt Consolidation Plan: Advantages And Requirements
This is a type of loan that allows you to consolidate all of your personal and credit card debt into one loan with a lower interest rate.
After consolidating your loans, you pay them back as a single loan in monthly payments – just like you would with a personal loan. You can repay this loan in up to 10 years.
You can apply for a debt consolidation loan in Singapore if you want to consolidate your debts. It is a loan management tool that helps you consolidate your outstanding loans.
Let’s say Lorna has $40,000 in credit debt on three credit cards from different lenders and one personal loan. She earns $3,000. The loan looks like this:
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From the table above, Lorna must pay a minimum of $1,275 per month, which is almost half of her salary. In addition, the total amount of the payment is 12 times his monthly salary.
Lorna can ease this debt burden with a debt consolidation plan. The bank making the offer will buy Lorna’s loan balances, fees and charges from her four loans. The loan account will be closed and temporarily suspended.
For example, Lorna can get a loan from HSBC at 3.4% p.a. (effective interest rate 6.5% p.a.) with a fixed interest rate that she can repay over eight years.
This loan will reduce her monthly payments to about $562, which is more affordable than the previous amount.
Debt Consolidation Can Help Pay Off Credit Card Debt
When deciding whether you should consolidate your debts, it is very important to use a debt consolidation loan calculator.
This tool helps generate different loan packages, interest rates, and payment plans based on the numbers you provide. As a result, you can compare loans from different lenders.
This is because you can adjust the amount and term of the loan to find monthly payments that can be adjusted according to your financial capabilities.
When you approach a lender for a debt consolidation loan in Singapore, they will likely lend you an amount equal to the balance you owe.
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When you get your first debt consolidation plan from your lender, they may charge you an additional 5% of the loan amount.
This amount will help you cover the costs you will incur from the time your loan plan is approved until you receive the funds.
Also, the funds will be deposited directly with the lender you borrowed from, rather than into your checking or savings account. If there are funds remaining from the 5% allowance, they will be returned or re-credited.
However, there is no guarantee that the creditor will give you the full amount to repay the debts.
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In such a situation, you will have to dig into your pocket immediately to pay the balance.
Even if you are asking “how does a debt consolidation loan work?” it is important to know if you qualify for a loan. Lenders have eligibility criteria they use to determine if you qualify for a loan.
You must be a Singaporean or Permanent Resident (PR) to get a debt consolidation loan. Therefore, you may not qualify for this loan if you are a foreigner residing in Singapore.
How much do you owe your creditors? You must have a lot of debt to qualify for this loan. You can get a lender if you have an outstanding unsecured loan worth at least 12 times your monthly salary.
How Does Debt Consolidation Loan Work?
You must be employed and earning between $20,000 and $120,000 per year. Also, your net personal assets must be less than $2 million.
Which financial institutions in Singapore can help you consolidate your debts and loans? You can try this:
If you need a debt consolidation plan in Singapore, there are about 14 banks that can help you. Remember that each lender has its own terms, rates and costs.
Banks in Singapore are stricter in issuing loans compared to licensed lenders. Therefore, you may not be eligible for a debt consolidation plan with a bank.
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Every legal moneylender in Singapore operates under the supervision of the Ministry of Justice. In addition, this body provides clear guidelines on how these lenders should operate.
For example, a licensed lender must explain all terms and conditions in a language you can understand before you sign the loan agreement.
Is there another way out? Yes, you can find alternatives to help you pay off some of your loans.
You can apply for a personal loan as it is easier to get than a debt consolidation plan in Singapore. With this loan, pay off high-interest debts like credit card bills.
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From now on, stay disciplined by having a plan to pay off your personal loan. Don’t miss paying your loan on time because you’ll pay a late fee.
If you have several outstanding loans from different lenders, you can attest to how difficult it can be to keep up with your monthly payments. But debt consolidation loans make everything easier.
But how does a debt consolidation loan work? This will help you consolidate all your existing debts into one loan with a lower interest rate. This makes repayment more manageable.
To qualify for this loan, you must be a Singaporean or PR citizen, earn at least $20,000 to $120,000 per year, and have a debt of at least 12 times your monthly salary.
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However, if you don’t qualify, you can take out a personal loan from a bank or licensed lender to offset your debt.
For any loan in Singapore contact Credit 21. We are one of the licensed lenders in the industry helping borrowers get loans with the lowest interest rates. Author: Mia Taylor Author: Mia TaylorArrow Correct Contributor Mia Taylor is an award-winning contributor and journalist with twenty years of experience as a staff reporter or contributor to some of the nation’s leading newspapers and websites, including The Atlanta Journal. -Constitution, San Diego Union-Tribune, TheStreet, MSN and Credit.com. Mia Taylor
Edited by Aylea Wilkins Edited by Aylea WilkinsArrow Senior Lending Editor Former Insurance Editor Aylea Wilkins is an editor specializing in personal and home loans. Previously, he worked on content editing for auto, home and life insurance. He has been editing professionally in various fields for almost ten years, mainly focusing on helping people make financial decisions and buy with confidence by providing clear and unbiased information. Ailea Wilkins
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