Frequently Asked Questions
Q1. What is Debt Consolidation?
Debt Consolidation in Singapore is a process that allows a professional firm to reach an agreement with your creditors to achieve the lowest and most affordable monthly obligation needed to satisfy all your credit accounts. Although this is NOT A LOAN, we are able to assist clients in dramatically reducing their overall interest rate, monthly payments, and most importantly pay-off time.
Q2. How does the program work?
All of your accounts are grouped into one manageable monthly payment that is then disbursed to your creditors each month on the same date. We work with your creditors to reduce or eliminate your interest rates, re-age your accounts, and stop late & over limit fees. Although creditors recognize that people who enter into a counseling program are making a good faith effort to repay their obligations. By joining an established debt management program, you solve the underlying problems of high debt without taking drastic steps such as declaring bankruptcy or committing yourself to a long-term loan.
Q3. How long will it take to complete the program?
The length of time necessary to complete the program varies from case to case and will be discussed with you in your free counseling session. Depending on the total amount of your debt, the pay off time can be reduced from 15-30 years down to 4-5 years. This process can drastically save you thousands of dollars in finance charges.
Q4. What is the REDUCED INTEREST RATE?
The program is a designed to reduce or eliminate your interest charges and help stop over limit & late fees. It is specifically designed to reduce your unsecured debt by lowering interest rates. With this exclusive program, we are able to:
- Reduce interest rates typically to an average of 5-16%
- Stop over limit fees & late fees
- Cut your overall payment time in dramatically
- Re-age your accounts (Bring them up to current status on your credit report)
Creditors often charge average interest rates of 24-26% and often as high as 30%.By enrolling the program, we are often able to save you thousands of dollars in interest!
Q5. Is loan an option?
Simply, a loan usually requires collateral (i.e. home, car or retirement funds, etc.). This type of loan will not reduce the amount of money you owe. It will only place your assets at risk and extend your debt further into the future.
Q6. How much does this service cost?
A-Team Management has the interests of their client’s at heart and is sensitive towards our client’s financial standing. Our fees are based on case to case so as to take into consideration each client’s individual needs. Thus we will only be able to advise client of the exact fee upon assessing his/her case. Clients are definitely assured of a worthwhile experience with us because they can expect to look at savings much more than what our fees would entail.
Q7. How will this affect my credit?
With this program, your accounts will inevitably be terminated for the respective banks to restructure them into a lower monthly repayment to meet your ability. Thus upon termination, your credit rating will be negatively affected. However clients should be aware that by choosing not to undergo this program will not save you from suffering a bad credit rating when you can no longer keep your accounts active due to your inability to meet your monthly minimum payments. Thus the negative impact of your credit rating was the result of your inability to maintain your minimum payments rather than the program itself.