When you avail the facility of debt consolidation plan, it combines all your debts into a single loan. debt consolidation plan Singapore works only after your application has been approved by the bank. Your bank will take over all your outstanding balances with other banks and your existing unsecured credit facilities will be closed or suspended. You will then need to make regular payments to service the debt consolidation plan.
The debt consolidation plan amount will be equivalent to the total outstanding balance including interest and any other fees and/or charges accruing on your accounts. Depending upon your promptness in repaying, your credit bureau report will be updated accordingly without adversely affecting your credit rating.
