Don’t Let Your Debts Be The Boss Of You [QUIZ]
For most people, debt is a part of life. We need debts to get an education, buy a car, own a home or even expand our business.
That’s not necessarily a bad thing – if managed well. Good debts that are managed well can help us achieve our financial goals and improve our quality of life.
However, when debts are not being managed properly, it can destroy our lives.
So, how well are you managing your debts? Take this quiz to find out.
If you are currently holding a few outstanding debts – like other personal loans and credit card balances – it makes sense to consolidate your debts into one lower-interest loan. By doing so, you may be able to lower your overall interest payments, fix your monthly repayment, and also predetermine your settlement period. Not to mention the convenience of managing just one repayment instead of multiple.
For example, you are currently earning S$4,000 and currently hold the following debts:
|Credit card A||S$12,800.00|
|Credit card B||S$8,200.00|
Here’s how a debt consolidation plan can work in your favour:
|Applied/flat interest rate||5.68% per annum|
|Estimated total cost||S$16,358.40 + S$199.00 = S$16,557.40
If you choose not to consolidate, here’s how much it can cost you:
|Personal Loan||Credit card A||Credit card B||Others|
|Interest rate (p.a.)||6.88%||25.00%||25.92%||4.50%|
5% of outstanding balance
First payment = S$640.00
5% of outstanding balance
First payment = S$410.00
|Time to pay off||6 years||9 years 5 months||8 years 4 months||5 years|
|Total interest incurred||S$8,668.80||S$8,735.64||S$5,799.60||S$711.49|
Total interest incurred without a debt consolidation plan is a whopping S$23,915.53. If you choose to consolidate your debts with Standard Chartered debt consolidation plan, you would be saving about S$7,358.13!
Without a debt consolidation plan, you will be forking out S$1,584.60 in the first month to pay off all four balances, and it will take you more close to a decade to be completely debt-free (assuming you are not taking up more loans or credit card debts in between).
The debt consolidation plan does not only let you pay off all your debts in a shorter time, you will also enjoy better cash flow because you would only need to pay S$896.63 every month. You can adjust the repayment amount and the tenure according to your needs and financial capabilities.
Juggling too many debts can be stressful and letting one repayment drop can be a disaster. This is why debt consolidation is good for you as you will only need to deal with one lender, and make a single payment on one due date. This makes life so much simpler and easier.
If you are serious about being debt-free, consolidating your debts is a right move towards the right direction. However, it is not magic. If you are not disciplined in your repayments, you will end up racking up more interest charges, and back to square one.
You must be proactive in managing your debts, and not wait until it’s too late. Consider a low-interest debt consolidation plan and see how it can benefit your finances!
Free yourself from higher interest payments & consolidate your debts with interest starting from 4.98% per annum.