One of the most effective ways to help you get rid of debt and still be able to pay it off is by refinancing. In short, this method will help you to get new loans with installments that are more mitigating. However, can you apply for a new loan even though the name is already registered in the OJK SLIK blacklist ? The answer, you can, provided you can choose from the company that provides the right debt management program.
Definition of Credit Card Debt Refinancing and KTA
Basically refinancing or also commonly called debt consolidation is a step taken to make it easier for you to pay off a combination of several types of debt into one debt to a financial institution other than a bank (for example finance company and company peer to peer lending).
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 debts that are still running.
There are several situations that need to be considered when deciding to take part in a refinancing program. First, make sure that you currently have a current debt that you want to repair, meaning that you have started to feel objections but still want to pay it off to completion. Second, look for new loans with conditions (such as interest and so on) that are in accordance with your ability, in order to pay off debts that are still running now. Third, make sure this new loan will be able to pay off the debt that is still running right now, so you only have to pay off the debt to the borrower who has just recently.
Benefits of Refinancing
- No more bothering to pay debts separately to several banks at once.
So with debt consolidation, the entire process of paying various credit card debt or KTA is only done through one door. This can be very troublesome, especially if you are a fairly busy person. In addition, the advantages of other credit card debt consolidations are with lower interest than normal interest.
- Relieve installments per month
No need to deny it again, usually by doing refinancing methods you can pay installments more easily. The main purpose of refinancing is usually to be able to help debt owners to be able to pay installments to full, of course this has an impact on lower installments so as not to make it difficult. That way, you can also manage the flow of funds more easily, and can allocate the remaining money for other monthly needs that have a similar level of urgency to be paid immediately.
- Can be paid with the agreed installment tenor
One of the main advantages of refinancing is when you make a payment back to the borrower, you can pay in installments for a long period of time. Of course this must be agreed at first with the borrower, normally the installment tenure can run up to 24 months (two years).
Simulation Example How to Use Refinancing
Budi has a credit card debt arrears of IDR 30,000,000 and must pay minimum payment of IDR 3,000,000 per month. Budi has a monthly income of IDR 5,000,000, and after being allocated to pay rent and other expenses, Budi has the remaining Rp1,000,000 to pay his credit card bills. Currently, Budi has been late making payments for the past 3 months, and is starting to be haunted by debt collectors.
Of course, even though Budi has the opportunity to pay minimum payment amounting to IDR 3,000,000 per month, this will not make it faster to be free of debt. Not to mention, Budi also has to avoid using credit cards so that the total debt does not soar, while he will pay it off with minimum payment. However, if Budi does choose this option, Budi will only be able to be free of debt after making payments for 4 years and 4 months. In addition, the total payment that must be made is IDR 38,300,000 (principal amount of IDR 30,000,000 and interest of IDR 8,300,000).
Budi finally followed Mr.’s debt management program Bumble, and Mr. Bumble managed to get a discount discount program to alleviate the remaining debt that is still owned by Budi. Based on these results, Mr. Bumble managed to ease Budi’s debt to IDR 20,000,000 to pay off all arrears. Of course the nominal must be completed in just 1x payment and Budi no longer needs to pay additional interest. Only in 1x payment, Budi can be immediately free from debt bondage.
Then, Budi applied for a new loan (refinancing) with a 24x installment of Rp940,000, – it means that it takes 24 months for a total of Rp22,600,000, – to be free from all arrears (saving Rp7,400,000, – from the total debt of Rp30,000,000, – which must be paid to the bank) .
You can see that it turns out that using a new loan to pay off debts that are still running can help you to be free of debt and save more. In that case, it means that Budi repaid all the remaining arrears to the bank in 1x, without fear of being chased by debt collector, and just complete the remaining installments to the financial institutions that provide refinancing programs with lower interest rates. In Budi’s case, taking a relief program with discounted pieces was accompanied by refinancing can make it save more than IDR 15,000,000
Types of Debt Consolidation Programs
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, Mr. Bumble works with institutions finance company and company peer to peer lending trusted in Indonesia. This was done as an effort by Mr. Bumble in helping our clients to lead a new life free of debt, which is integrated into Mr.’s debt management program Bumble. Here are two types of debt consolidation programs available at Mr. Bumble:
Consolidation with Collateral
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, Mr. Bumble will also help conduct the negotiation process before the debt is consolidated. So, you can pay off the debt even more lightly.
Mr. Bumble 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.
Unsecured Consolidation: Card Cutter and Card Cutter Plus
Of course this type of debt consolidation is more suitable for those of you who do not have assets. Mr. Bumble works with a company peer to peer lending well-known 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 Mr. Bumble), 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 the usual debt conditions already in arrears , then before consolidating into one, the debts will through the negotiation process first in order to get the cut. 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 yourself in the Card Cutter Plus program (assisted by professional consultant Mr. Bumble).
Submission Process Refinancing
When submitting a program refinancing, of course you cannot carelessly choose a financial institution. This wrong step can lead to additional nightmares, which will make it difficult for you to pay off all the remaining outstanding arrears. To overcome this, you can rely on references from companies that provide debt management programs, because these companies usually have the best strategies that can help you free from debt, along with recommendations trusted financial institution, which can assist you in getting the program refinancing best and help free from debt.
To get the program refinancing the best 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 Mr. Bumble.
Mr. Bumble 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. Mr. Bumble Indonesia helps clients through debt management programs, specifically designed to suit 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. Mr. Headquarters Bumble Indonesia was founded in Jakarta in 2015 by a founding team that has collective experience in the financial sector including debt settlement for more than two decades. Mr. Bumble made Indonesia the center of operations as well as a blueprint for the company’s development plan to other ASEAN countries. Since July 2016, Mr. Bumble Indonesia is the first company in Asia to get accreditation from the International Association of Professional Debt Arbitrators (IAPDA).