When entangled in credit card debt or KTA, the solution that you can take is to take part in a refinancing program. In short, this method is the right solution because you use the assets you have to get funds in paying off the remaining debts that are still in arrears. What is refinancing and what are the steps that will be taken when following a credit card debt consolidation program.
Basically refinancing or also commonly referred to as debt consolidation is a step taken to make it easier for you to be able to pay off a combination of several types of debt into one debt only to a financial institution other than banks (for example finance companies and peer to peer lending companies ).
In the credit card refinancing process itself, the flow is usually the same as the first time you applied for a mortgage or KKB installment. You need to choose the right refinancing service provider that suits you. Also find out what requirements you need to fulfill, for example whether it needs to be accompanied by a guarantee of assets (vehicles or property) or unnecessary. As well as what other provisions you need to fulfill in order to be able to take part in the program to pay off the remaining debt that is still running.
There are two types of debt consolidation, namely using collateral and not using collateral. Both have their own advantages and disadvantages, and can be obtained in accordance with the terms and conditions provided by non-bank financing institutions.
Now, Dorian Gray is working with multi-finance institutions and trusted peer to peer lending companies in Indonesia. This was done as Dorian Gray’s effort in helping our clients in leading a new life free of debt, which was integrated into Dorian Gray’s debt management program. Here are two types of debt consolidation programs available at Dorian Gray:
As the name implies, debt consolidation with this type is done using collateral. In most cases, it is usually the type of asset that can be pledged as property, especially housing. In other cases, you can also give the car as collateral.
To participate in a consolidation program with collateral, debts that are still running can be in arrears and smooth. So, even though you haven’t been in arrears, you can take this step as a preventative step in order to pay off the debt with a temporary relief while still having funds. For those who have been in arrears, Dorian Gray will also help conduct the negotiation process before the debt is consolidated. So, you can pay off the debt even more lightly.
Dorian Gray provides this type of program by collaborating with several well-known multifinance institutions in Indonesia such as BFI Finance and Smart Finance, to assist our clients in obtaining a debt consolidation program.
Of course this type of debt consolidation is more suitable for those of you who do not have assets. Dorian Gray collaborates with a well-known peer to peer lending company in Indonesia, KoinWorks, to provide this program to our clients. As one of the startup companies in the field of financial technology in Indonesia, of course you already know KoinWorks as a company that provides low interest loans. There are two types of consolidated programs without collateral:
In this type of program, you can consolidate several credit card / KTA debt with a minimum of a total of 10 million Rupiah. In the Card Cutter program, debt conditions are usually not in arrears. You don’t need to use any collateral, just register in the Card Cutter program (assisted by professional consultant Dorian Gray), then some types of debt will be replaced by one new debt.
Card Cutter Plus
In this type of program, you can consolidate several credit card / KTA debt with a minimum of a total of 10 million Rupiah. The difference is that the debt condition is usually in arrears, then before it is consolidated into one, the debts will go through a negotiation process in order to get a discount. Of course this will make your debt even lighter, and easier to pay off. As with Card Cutter, you also don’t need to use any collateral. Simply register in the Card Cutter Plus program (assisted by professional consultant Dorian Gray).
Before deciding to take part in a debt consolidation or refinancing program, start by calculating total debt. How big is the nominal debt that you have, then whether the savings saved until now are still possible to use so that you can pay off the remaining debt in arrears. Don’t forget, also check what assets you currently have. Assets in the form of a house or car can be used so that you can take part in a debt consolidation program. See if the house you live in can now be used, or the car you use can also be a valuable weapon in paying off debt.
After calculating total debt, start by looking for a debt consolidation program or refinancing from a company that already has a good reputation in the service. The first benchmark is of course by checking whether the borrowing fund company is registered with the OJK, because as an institution that has the authority over financial institutions that manage funds, of course OJK will select its members.
Usually, borrowers registered with OJK can also be more trusted in their ability to maintain the information and personal data of prospective borrowers. Not to mention, for personal financial matters, of course you don’t want to carelessly access your data, right? Some types of financial institutions that you have to check their names in OJK are not limited to banks, multi-finance (financing), and companies peer to peer lending.
In a credit card debt consolidation program, there will usually be a number of requirements that you need to fulfill, the main requirement usually lies in the collateral assets. Check again whether the assets you have are sufficient to meet the requirements. That way, you can start submitting the program to the borrower. To take part in the program at Dorian Gray yourself, you must fulfill the requirements such as being married and having children, working for two years in the same company, and having lived for two years at the same address. In terms of collateral in terms of variability, the main characteristic is a house that has a good resale value. So, for example if the house is near the railroad tracks, of course it will have a lower selling value and tend to be more difficult to take part in a debt consolidation program.
Don’t forget, you also have to ask for the payment scheme that you will do. If indeed the installment payment is made for the next 24 months (two years), then see if the table provides clear details, how much the nominal must be paid each month, along with the interest. That way, you can see clearly how the calculation is and whether you are capable enough to take part in the program to complete, so that the ongoing debt problem can also be quickly completed.
When you take part in a debt consolidation program, one that should be noted is the amount of installments per month that must be paid. Normally, the monthly installments must be lower than the installments you pay today. Suppose you currently have two credit cards and one KTA that are in arrears, if accumulated all the total outstanding debt is IDR 100,000,000, then installments per month that must be paid cumulatively in the amount of IDR 10,000,000, however, with this consolidation program, later the three types of debt will turn into one type of debt with one of the finance companies, and you only need to pay lower, assuming only Rp. 300,000 per month to a predetermined tenure and certainly more relieve you. Of course not all schemes will work like this, it could be that the monthly installments are only Rp1,000,000 or even more, but what is certain is that the installments will be lower than the installments to the bank.
Another thing you need to pay attention to is the existence of reasonable interest rates. Normally, the interest charged ranges from no more than 3% per month. It is important to remember that even though the interest rate is quite high, usually the monthly installments can certainly be lower because they are repaid in a certain tenor that has been adjusted by the borrowing company (the provider of the debt consolidation program). In addition, usually if you are charged a fee, the costs paid for joining the program should still be reasonable.
To get the best refinancing program that is of course accompanied by a debt management program, in order to help you be free of debt, you can use professional services from a debt management company. One of them is Dorian Gray.
Dorian Gray international is the first technology-based professional services company in Indonesia, which provides a debt management program. This program is designed so that consumers who are in debt, have the ability to control their finances again. Dorian Gray Indonesia helps clients through a debt management program, specifically designed according to different needs for each client. This program is a combination of education on various opportunities to increase income and reduce expenditure, as well as conduct negotiation processes on existing bank debt requirements to reach the amount of payment that is in accordance with the ability. Dorian Gray Indonesia headquarters was established in Jakarta in 2015 by a founding team that has collective experience in the financial sector including debt settlement for more than two decades. Dorian Gray made Indonesia as the center of operations as well as a blueprint for the company’s development plan to other ASEAN countries. Since July 2016, Dorian Gray Indonesia has become the first company in Asia to be accredited by the International Association of Professional Debt Arbitrators (IAPDA).