When financial difficulties hit, people often take out loans to manage their expenses. While taking debt to cover essential needs like housing, education and healthcare is normal, it can be a problem when these loans accumulate into unmanageable levels of credit card balances, personal loans or business funding. Fortunately, individuals in Singapore can get help from a debt repayment program singapore to avoid bankruptcy.More Discussion Posted Here
The debt repayment scheme is a pre-bankruptcy alternative that allows individuals with unmanageable debts to create an affordable payment plan with creditors. The programme is facilitated by Credit Counselling Singapore (CCS) in partnership with financial institutions. Its eligibility criteria emphasizes consistent gainful employment and a stable income, which are prerequisites to the success of the plan. In addition, individuals must not have declared bankruptcy in the past five years to qualify.
Is the Debt Repayment Program in Singapore Right for You
During the DRS process, you must attend a meeting with creditors to explain your financial situation and propose a new payment plan. You may also be required to pay a suitability review fee. The DRS process usually takes between six and 18 months. After completing the DRS, your credit cards and loans will be cancelled and you will receive a certificate of completion from CCS. Upon completion, you must attend a debt management workshop to learn how to rebuild your credit worthiness.
The DRS can provide a number of benefits, including debt consolidation, lower interest rates and substantial savings for individuals who are struggling with debts. However, it’s important to note that this is a serious option and should be used only when necessary.
