How Debt Consolidation Loans in Singapore Work To Help You

Living in Singapore can be challenging with high expenses and bills to pay for. Some of you might be struggling with debt, or have taken on multiple loans to pay off different debts. With different repayment deadlines and amounts to handle, dealing with numerous loans can be very stressful, especially if you can’t keep up with repaying each instalment in full punctually.

One potential solution is to combine all loans into one through a debt consolidation loan.

Intrigued? Read on to learn more about debt consolidation loans in Singapore, how debt consolidation loans can benefit you, who can get their hands on such a debt consolidation loan in Singapore, and where to get this personal loan for debt consolidation quickly.

What is a debt consolidation loan?

A debt consolidation loan in Singapore is known as a type of personal loan for debt consolidation.

It’s a way to let you merge and refinance your various unsecured debt obligations (e.g. credit card loan, personal loan) simultaneously.

Debt consolidation loans generally have better repayment terms, such as lower interest rates, too.

How do debt consolidation loans work?

When you take up a debt consolidation loan in Singapore, funds from the loan will be used to pay off your existing unsecured debts.

Instead of having to cope with several different debts at one go, there’s only one personal loan for debt consolidation to be repaid to the debt consolidation loan money lender whom you’ve borrowed from.

You no longer need to take note of multiple repayment deadlines every month. All you have to do is concentrate on paying your one single debt consolidation loan instalment monthly! This certainly makes it a lot easier to stay on top of your loan repayments, doesn’t it?

Benefits of using debt consolidation loans

1. One repayment deadline with one lender

When you combine all eligible loans into one, you streamline your debts to make your life much less stressful. Let’s face it, a consolidated loan from one debt consolidation money lender is much easier to handle compared to multiple loans across multiple lenders — you only have one set of loan repayment dates to remember. It makes organising payments so much easier!

2. Lower interest rate

Debt consolidation loans in Singapore often have lower interest rates than the average personal loans that you have trouble consistently keeping up with or high-interest credit card loans. Always compare the interest rates and loan terms offered by different debt consolidation loan money lenders before making your decision for good measure.

3. Get out of debt quicker

Debt consolidation loans have the potential to save you extra cash in the long run, especially if you refrain from extending your loan tenure and are diligent in paying off your loan on time. The potential interest savings and late penalty savings to be had with a debt consolidation loan that you can comfortably manage can help clear your debt more quickly, pushing you towards being debt-free sooner.

4. Improved credit rating over time

As you consistently make on-time payments to pay off your debt consolidation loan, you can expect your credit rating to improve over time. The key to improving your credit rating with time is to not have any missed repayments when it comes to loans and debts!

Who’s eligible for debt consolidation loans in Singapore?

Depending on which lending institution you approach for a debt consolidation loan, the eligibility criteria can differ.

Eligibility criteria with banks and financial institutions

• Banks and financial institutions only offer debt consolidation plans to Singapore Citizens or Permanent Residents.
• Borrowers are expected to earn an income between $20,000 and $120,000 per annum.
• Their total assets, excluding liabilities, should be less than $2 million.
• Their total unsecured debts, including interest, from all partnered financial institutions in Singapore must be more than 12 times their monthly income.

Eligibility criteria with debt consolidation loan money lenders

• Generally, debt consolidation money lenders offer loans to individuals who are at least 18 years old, working and residing in Singapore (i.e. Citizens, Permanent Residents, or Foreigners with a valid Work Pass).
• Borrowers must have a steady monthly income to support their loan repayment.
• The amount you can borrow depends on your monthly income and total debt sum.
• No minimum unsecured debt amount required, hence more accessible.
• Unsecured debts can include loans from other licensed lenders, not necessarily only debts from regular banks and financial institutions.

Where can you get debt consolidation loans in Singapore?

Debt consolidation plans are available at participating financial institutions in Singapore, including banks like DBS, HSBC, Citibank, and more.
Debt consolidation loans, on the other hand, are available only at major licensed money lenders. Not all licensed lenders are debt consolidation loan money lenders.

Is licensed money lender debt consolidation legitimate?

Yes, licensed money lender debt consolidation is legitimate. This is true so long as you’re engaging with a debt consolidation loan licensed money lender that’s 100% authorised. Double check that the lender is one of the Ministry of Law’s registered legal lenders.

Conclusion: Debt consolidation loans triumphs over debt consolidation plans

Licensed money lender debt consolidation is much more easily obtainable and much less stringent compared to regular debt consolidation plans from banks and financial institutions. For starters, you can utilise a debt consolidation loan in Singapore to improve your situation without having to be in such deep debts!

Reputable debt consolidation loan money lenders like Prosper Credit can help you if you’re struggling to juggle multiple loans and debts (e.g. multiple payday loans).

Simply apply for a debt consolidation loan with us to lessen your financial load. Our loans are catered to each individual’s needs.

Apply for a debt consolidation loan now!