Getting Help from a Debt Management Programme: What Does it Look Like?
Falling into debt or any financial difficulty can be particularly de-motivating. With little knowledge on how to manage your debt, falling into debt can be very scary and stressful.
However, there is always hope. Before reaching the point where you have to declare bankruptcy, it is still possible to get your finances in order and dig yourself out of debt with the help of a credit counselling programme.
What are Credit Counselling Programmes and What Do They Entail?
Credit counselling programmes are designed to get you on the correct path towards paying off your debt and finally become debt free.
Best Debt Consolidation Plans in Singapore
However, if you are in debt amounting to more than 12 times your monthly salary, your best bet would be to look for a debt consolidation plan.
Debt consolidation plans lets you combine all your high interest debt (Eg: Credit card debt, personal loans, credit lines) under one single lender that charges lower interest rates. As such, by using a debt consolidation plan, you would essentially be paying back all your debt from your previous debtors, and then transferring that debt to another lender.
Many banks in Singapore such as POSB, DBS, HSBC, Maybank and CIMB Bank offer debt consolidation plans. However, to find the best one, you will have to compare interest rates to figure out which would be most cost effective for you.
In the case that following a debt consolidation plan is still not sufficient enough to get rid of your debt, that is when you can consider credit counselling.
Getting Help from Double Ace Associates
Double Ace Associates helms a variety of services that could help you manage your debt better. These services include our Informational Talk on Debt Management, Credit Counselling, our Debt Management Programme (DMP) and lastly, we also educate our clients on better ways to manage their financial issues with the years of experience we have in the debt collection industry.
What Does a Debt Management Programme Look Like?
A debt management programme is a debt repayment scheme that can help debtors avoid bankruptcy. The programme also functions as a private agreement between you and your creditors to enable you to repay your loans in a more manageable way. As such, your creditors will have to approve the debt management plan before it can be carried out.
Under our debt management programme, you will be given the chance to repay all your consumer debt (Eg: Credit card debt, personal loans, credit lines) over a reasonable period of time. This plan will be drawn up based on your own financial situation and your ability to repay your debt.
As such, instead of consolidating your debts under one lender (as happens under a debt consolidation plan), you will continue repaying your original creditors.
What Happens Next?
If you have consolidated your loans, your credit score will improve as long as you manage to pay back more and more of your loan by managing your finances consistently.
In the end, debt is not a shameful matter. Recognise that you have landed yourself in debt and take action to manage it in order to be on the correct path towards better finances.