What Does Credit Card Debt Consolidation Mean & What Are the Benefits for Me?


Steps to pay off credit card debt and delinquent KTA are now increasingly widespread. Cratchit family’s debt management program now has a new product in the form of debt consolidation and refinancing your debts. In short, a debt consolidation program is a program that is made to make it easier for you to pay off the combined types of debt into one debt.

For more details, let’s look at the points below:


Definition of Credit Card and KTA Debt Consolidation


Definition of Credit Card and KTA Debt Consolidation


Basically credit card debt consolidation and KTA (debt consolidation) are steps taken to make it easier for you to be able to pay off a combination of several types of debt into one debt to a financial institution other than a bank (for example finance companies or peer to peer lending companies ).

Usually there are several advantages of credit card or KTA debt consolidation that you can get. First, you no longer have to bother paying debt 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.

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.

Things to Look For in Debt Consolidation


Things to Look For in Debt Consolidation


Before using a credit card debt consolidation program, there are a number of things you should pay attention to.

1. Calculate the total debt and money in the current deposit

This way you will know what total debt you have to pay off, besides that you also have to know whether the money you currently have is still possible to make payments normally. If you know that it is no longer possible, try calculating whether the remaining deposits are actually better allocated for a debt consolidation program – with one-door payments, and interest that tends to ease

2. Know the estimated debt that must be paid to completion

Calculate carefully how much the estimated debt that must be paid is paid off. Don’t forget to calculate the interest that will be charged. Do you think you will be better able to pay off the debt with the calculation given. By doing the calculation correctly, of course you can prepare funds so that the debt can be repaid in a timely manner.

3. Remember that credit cards and KTA can no longer be used

Yes, once you have joined a debt consolidation program, the credit card you have is no longer usable. So you really have to take advantage of this moment to focus on paying off debt, and no longer add debt.


How to follow the Debt Consolidation Program?


 How to follow the Debt Consolidation Program?


As the first technology-based professional service company in Indonesia that provides a debt management program, Cratchit family international always strives to provide solutions for all our clients in paying off their debts. One of our latest breakthroughs is through a debt consolidation program.

Cratchit family works with financial institutions as well as the best peer to peer lending companies in Indonesia, whose business moves are registered and recognized by OJK (Financial Services Authority). This shows Cratchit family’s seriousness so that clients can settle debts in a professional and legal manner in the eyes of the Government. Here are two types of Cratchit family debt consolidation programs:

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. The specifications of the type of house that can be pledged of course vary, depending on the terms and conditions set by the financing institution. For collateral in the form of a house, generally it must be a residential house in a predetermined location (for example housing), not a shop / house or a house formed into a boarding house. There are still many specifications specified to determine whether a house is worthy of being collateral. In other cases, you can also give the car as collateral. Just like home, there will be several conditions, for example the car is registered in its own name.

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, Cratchit family will also help conduct the negotiation process before the debt is consolidated. So, you can pay off the debt even more lightly.

Cratchit family works 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. The two multi-finance institutions will help all Cratchit family clients to pay off debts more easily and relieve.

To participate in this program there will be requirements that must be met. More complete information can directly contact our consultant.

Unsecured Consolidation: Card Cutter and Card Cutter Plus

As the name implies, this type of debt consolidation does not require collateral at all. Of course this type is more suitable for those of you who do not have assets, which are in accordance with the provisions. Cratchit family works 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:

Card cutter

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 do not need to use any collateral, just register in the Card Cutter program (assisted by a professional Cratchit family consultant), 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 yourself in the Card Cutter Plus program (assisted by a professional Cratchit family consultant).

So, if without such collateral then what are the requirements that need to be fulfilled in order to be able to participate in the Card Cutter and Card Cutter Plus program?

  1. Based in Jabodetabek
  2. Employees who have worked for min. 12 months in a company
  3. Married and have children

To find out more about the Cratchit family debt consolidation program, please click the image below so that our team can contact you.

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