Notice: Undefined index: amp_before_featured_image_advertisment_img in /home/autoescu/public_html/instantbazinga.com/wp-content/themes/onfleek/inc/df-core/df-utils/df-amp-custom.php on line 462

Notice: Undefined index: amp_after_content_advertisment_img in /home/autoescu/public_html/instantbazinga.com/wp-content/themes/onfleek/inc/df-core/df-utils/df-amp-custom.php on line 486
lang="en-US"> How to Apply for a Debt Consolidation Loan in Singapore - Instant Bazinga
Notice: Undefined index: amp_before_featured_image_advertisment_img in /home/autoescu/public_html/instantbazinga.com/wp-content/themes/onfleek/inc/df-core/df-utils/df-amp-custom.php on line 462

Notice: Undefined index: amp_after_content_advertisment_img in /home/autoescu/public_html/instantbazinga.com/wp-content/themes/onfleek/inc/df-core/df-utils/df-amp-custom.php on line 486
Site icon

How to Apply for a Debt Consolidation Loan in Singapore

What is Debt Consolidation?

Debt consolidation is a combination of various debts such as medical bills, pay loans, credit card bills, etc. People with lots of debts on the head usually think about debt consolidation for a simplified debt-relief plan and an illusion of a lower interest rate.

You must keep the following things in mind when you are thinking about debt consolidation;

When should you not consolidate?

First of all, you need to keep in mind that debt consolidation combines all of your debts, not eliminating them. This is why if you hope that debt consolidation can lower your monthly interest rate, and then you are wrong. Because after combining all of your dates and charged interest depending on, the moneylender will add additional charges like fees. And in the end, the whole matter may seem pointless to you.

Another thing you can do is check if the total debt consolidation amount is higher than half of your gross income. If the answer is yes, then you will be relieved from the confusion of whether or not to apply for debt consolidation.

So if you are hoping that you will pay off your debts with a loan but do not have a considerable monthly income, then forget about debt consolidation; otherwise, you will find yourself trapped in a more complicated situation.

How to choose the right moneylender for debt consolidation?

As we discussed before, debt consolidation can be useful, but there is still a chance of a scam. This means, if you are Consolidating debt to reduce the headache of a bunch of debts and lower the interest rate, in the end, you may end up paying double the rate. So a well-researched homework can only lead you to the right debt consolidation plan money lender.

Choose the correct agency

First, you need to shortlist a few debt consolidation agencies. Check the agencies’ works, read customers reviews, talk to a few previous customers, and start searching for the best debt consolidation companies in Singapore, because it is Google who can easily tell you if a company is good or not.

Compare the best personal loans

Some people choose to consolidate debt with their personal loans. In this method, one applies for a personal loan, predictably then chooses one with a low-interest rate, and then he uses the loan money to pay all the credit bills at once. If you choose to do so, then you better compare the best personal loans at first. Of Course, you will be focusing on the loan rate, but don’t forget about the loan terms.

Other costs

When you decide to choose a debt consolidation plan money lender, you must be aware that the money will obviously add some costs like fees, upfront charges, etc. Later they attract customers with attractive offers. But ultimately, even after applying for an offer, the borrower needs to pay extra money. That’s why while choosing a debt consolidation company, beware of the additional costs.

There are more things you need beware of;

How to get a debt consolidation loan?

Once you are sure about the fact that you are going to consolidate your debt and the decision is okay with your monthly earning, then follow a few steps and quickly get a debt consolidation loan.

  1. Credit Score

Check if your credit score is good enough because a lower credit score is ineligible for a debt consolidation loan. If you apply for debt consolidation with a low credit score, you will not get a lower interest rate.

  1. Make a list of all your debts

It is time for a manual calculation. Make a list of all your payments and debts, add up the total amount you have to pay, and add up the total amount you pay for individual interest every month. This is how you can make a budget and look for interest rates that fit in the budget.

  1. Loan Options

You must know that they are multiple options from where you can get your loan. For example, online money lender agencies, bank loans, and credit unions are basically non-profit organizations. All of the loan providers have different terms and conditions and choose one that perfectly fits your requirements.

  1. Apply for the debt consolidation loan

When you have chosen the company e to gather all the proofs and documents and apply for the loan:

To apply for a debt consolidation loan, you must also fulfill the eligibility criteria, which depends on the moneylender of Singapore. But most of all, you have to be a resident of Singapore.

Next: How to address Flu and Spider veins?
Exit mobile version