What can you do when you're in debt? Find out how to manage your debt and where to seek help when you need it. Show
Key takeaways
The weight of debt can add emotional, relational and financial stress to our lives. Good money habits can help you avoid falling into the debt trap. This is important as a good credit repayment history makes it easier for you to obtain credit and qualify for loans when you really need it. Avoiding the debt trapHere are some ways you can tweak your habits to avoid or reduce debt. When paying your bills or loans:
When spending money:
Paying off your debtsIf you're having problems with your cash flow, you can take steps to better manage your debt:
What if you can't pay?Speak to your bank immediately. They may be able to help you restructure your payments. If you can't keep up with repayments:
See also: Rules on unsecured credit: What it means for you Work with your bankDo not avoid calls or letters from your bank, its lawyers or debt collectors. Talk to them as soon as possible. Remain co-operative and contactable. If you are co-operative, your bank is more likely to help you restructure your payment schedule. If you have multiple debtsDon't give up – you can improve your debt situation. Here are steps you can take:
Where to get helpYou can do the following:
Debt Consolidation Plan (DCP)If you're heavily in debt, a Debt Consolidation Plan (DCP) could help you turn things around. DCP is an industry-initiated debt-refinancing programme. It will help you clear your debt if you have unsecured debts of more than 12 times your monthly income. How it worksWith this plan:
Infographic: How a Debt Consolidation Plan may help improve your debt situation Who can apply for DCP?You can apply for DCP if you meet these criteria:
Find out more about DCPFor more details on DCP or the participating banks, ask your bank or visit the Association of Banks in Singapore website. Is credit card debt ever forgiven?Most credit card companies are unlikely to forgive all your credit card debt, but they do occasionally accept a smaller amount in settlement of the balance due and forgive the rest. The credit card company might write off your debt, but this doesn't get rid of the debt—it's often sold to a collector.
How can I get out of a heavy credit card debt?Working with a debt settlement company is just one option for dealing with your debt. You also could: negotiate directly with your credit card company, work with a credit counselor, or consider bankruptcy.
What is the smartest way to get rid of credit card debt?5 Simple Ways to Get Out of Credit Card Debt Faster. Learn your interest rates and pay off highest-rate cards first. ... . Double your minimum payment. ... . Apply any extra money in your budget to your payment. ... . Split your payment in half and pay twice. ... . Transfer your balance to a 0% credit card.. How long will it take to pay off $25000 in credit card debt?In order to pay off $25,000 in credit card debt within 36 months, you need to pay $905 per month, assuming an APR of 18%. While you would incur $7,596 in interest charges during that time, you could avoid much of this extra cost and pay off your debt faster by using a 0% APR balance transfer credit card.
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