By MoneyBees
Check if you qualify for a Debt Consolidation Plan under the ABS rules (income S$20,000 to S$120,000, debt over 12 times monthly income) and see the interest one DCP loan saves you.
A refinancing programme offered by participating banks through the Association of Banks in Singapore. It moves all your interest-bearing unsecured debt with banks in Singapore into one loan with one bank, usually at a lower rate than credit cards.
Singapore citizens and PRs who earn S$20,000 to below S$120,000 a year, have net personal assets under S$2 million, and owe interest-bearing unsecured debt of more than 12 times their monthly income. Each bank still assesses you.
Interest-bearing balances on credit cards and unsecured credit facilities with banks in Singapore. It excludes renovation, education and medical loans, business credit and debts under joint accounts.
Once the DCP is approved, all your unsecured cards and credit lines are closed or suspended. The DCP bank gives you one revolving credit line fixed at 1 month's income.
No. ABS says the DCP must be done in full with one participating bank. The first DCP can add an allowance of up to 5% above your balances.
From other banks once your interest-bearing unsecured debt falls to 8 times your monthly income or lower, and from the DCP bank once it is below 4 times.
ABS does not set a tenure; each bank does. Enter the tenure and rate from your offer to see the instalment.
Yes. It stays on your Credit Bureau report for 3 years after the DCP closes.
Junxiong-WFG Organisation is an authorised representative of AIA Financial Advisers Private Limited (Reg. No. 201715016G).