Debt repayment scheme (DRS) is now known to most of the people in Singapore however not everyone knows how it can help you out in 2021. Especially if you are in debt and you have nowhere to go and afraid of being bankrupt.
In these tough times of Covid, most of us feels the pinch. Some of us felt it more than the others due to retrenchment, closing down of business etc. However the debt that you incurred didn’t put on a stop button due to your circumstances. There are some support program that the government are helping but it won’t last forever unless you got time on your side.
There are a number of ways it can help you.
Consolidate of all unsecured debt into 1 payment
0% interest rate for 57 months
This offer means that for a period of almost five years, any borrowed amount will not accrue interest, making it a cost-effective solution for individuals repay their high-interest debts or any kind of debt that they did not initially manage to settle.
The absence of interest during this period can result in substantial savings, allowing individuals to pay down the principal amount faster. This is really important, for example if you are only paying interest and not the principal previously, now it will and the subsequent payment will be brought down lesser and lesser till the principal amount is to zero.
Possibility of reduce debt repayment monthly
Ending your debt indefinitely is a goal, therefore being tied 57 months and be debt free afterwards is definitely rewarding. 0% interest, is not impossible as this is the government stepping in and helping you for your unsecured debts before the last option that is being bankrupt.
To help you figure out your expected monthly repayment or how many months you need to finish off the debt, you can use our debt repayment calculator and check out all of our other tools that might help you out do your budgeting and other calculations here
