What Is Debt Consolidation Plan?
In its simplest form of explanation, Debt Consolidation Plan or DCP, in short, is a form of repayment scheme introduced by The Association Of Banks in Singapore. DCP is a repayment scheme that helps consumers with their bloating debt situation.
What Type Of Debt Can It Be Used ?
We like to keep our explanation and sharing as simple as it can be. So, DCP can help you with your debt owed to recognized banks in Singapore.
Example, like your credit card balances, personal loans from recognized banks.
Another example, you have personal loan and 2 credit card balances. Usually, you will be paying 3 bills. Under DCP, all your 3 bills will be merged into 1 paying bill.
Do take note that certain categories of loans are excluded from DCP. They are :-
- car loans,
- joint accounts,
- renovation loans,
- medical loans and,
- credit facilities granted for business purposes.
How Much Of Debt Can DCP Covers ?
It has to be 12 times greater than your monthly income.
What Are The Benefits of DCP ?
- Reduce your average interests on the total amount to 3.5%
- Reduce monthly installment payments
- Become debt free within a short period of time
- Improve your credit score
Who are the participating banks offering DCP ?
| HSBC | 7.5-10% p.a | 1-10 years | View More |
| Citibank | 10.5% p.a | Up to 84 months | View More |
| Standard Chatered | 9.55-11.77% p.a | 10 years | View More |
| DBS | 8.22% p.a | 96 months | View More |
| OCBC | 10.46-11.08% p.a | 8 years | View More |
| UOB | 8.22-9.04% p.a | 72 months | View More |
| Maybank | 8.48% p.a | 10 years | View More |
It Can Be A Life Saver
In short, DCP can be a life saver for someone.
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