If you're in this situation, you're far from alone in Singapore. Estimates that at least a third of clients who sought the SG Debt Buster's help were there because of a failed or rejected by banks on covid-19 loan. Such loans include goverment support, a covid-19 relief support or even a personal loan.
If your applications have fallen through, the only thing to do is pick yourself up and go at it again with the help and solutions from SG Debt Buster. Try this three-step approach:
All support loans in Singapore are often dubbed "Band-Aid solutions" because you're covering the surface of the problem without addressing the root. You address your bills and interest charges, but not your bad spending habits.
Debt ratio vs. income/expenses is what's most often to blame for a failed consolidation plan. In other instances, business don't cut up their creditability after they've factor in their business debt, and go back to rolling on them, leaving them with the loans plus new business debt.
Sometimes, it's just Murphy's Law: you lose your customer payment, or your customer delayed paying you, and you don't have an emergency back up fund to fall back on. Suddenly, you're turning to credit to make ends meet without a plan to repay the new debt.
Depending on how many times your covid-19 support loan applications failed, you will face repercussions for missing payments. The most common consequences include spiked interest rates, losing an asset you used to secure the debt, a negative credit score impact or dealing with a co-signer who's now on the hook for your business debt.
In other instances, you may have used assets to secure a covid-19 support loan. For instance, you may have used a lien on your business property as collateral, and those possessions could be on the line if your creditor decides to take action for missing payments. It's worth asking for a second chance or gets an appointment with SG Debt Buster for a free credit counselling.
Finally, be prepared for your credit score to take a hit. You'll be on your creditor's radar quickly if you're missing payments on a large consolidated loan. The minute you default on your debt, your credit rating is hurt and every month that goes by, the negative impact continues.
After you've come to terms with the fallout of failing to obtain a covid-19 support loan, you need to act. There are a few routes to take in rejigging your plans:
Contact your creditor or financial institution: If you've consolidated your business debt, business line of credit or secured loan, you should call your creditor to let them know that you're falling behind.
Seek help from a family member or credit counsellor from SG Debt Buster: If you know someone who is well versed in personal finance and constructing a budget, she could be invaluable to you. Or, a credit counsellor could be the perfect mediator between you and your creditors. Counsellors often help with getting interest rates waived, for example. They'll also give a sober review of your budget to see if you have any wiggle room in your repayments.
Consider Debt Repayment Scheme or bankruptcy: If you feel like you're in over your head.
We help our clients thrive in a time of noise and distraction by creating success, experiences that compels people to act. We get behind their life mission and help them to restart.
To start, contact us online or call us at 8818 3816 now, and we will be happy to address the financial strain.
We can help you change your debt story and start afresh.
Every year, we help over thousand plus people resolve their problems, repay their debts and rebuild their lives. We could do the same for you.Hear their success stories
Individuals who we've helped since 2004
Million of interest saved by our repayment plan
Business owner who we've helped since 2004
Success rate on cases that we've helped