We get in debts at certain moment of our life due to uncertainty, urgency, lifestyle, family needs and many others. Usually we will not let others know which form part of Asia culture. We may even lose friendship if you try to borrow money from them.
Credit Counselling Singapore was setup with the objectives to get debtors out of the financial crisis. If you are ready down with debts, please consult them early to prevent it getting out of hand.
The 2nd appointment at CCS is the clearance session. You will get a debt management program (DMP) proposal which will be submitted to your creditors, the bank in this case.
The banks will in most cases accept the proposal. The debtors will pay according to the repayment schedule set out in the proposal. You will start the payment in the calendar month and three working days before the due date.
It is important that you made regular payments before the due date. You are enjoying a very low interest rate and do not give the banks a chance to terminate the DMP.
A DMP status will be logged with the Credit Bureau Singapore (CBS). With the DMP status, you will not be able to apply for any credit card or loan from the banks. You need to informed CCS once full payments had been made in order for them to remove the status from CBS. With the proper discipline, you will be debt free in three to seven years time.
I will talk about the repayment schedule in my next post.