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MoneySmart lists Debt Consolidation Plan products that range between a minimum of 1 to a maximum of 10 years. The effective interest rate (EIR) of loan products on our site range from 7.70% p.a. to up to 11.08% p.a. The EIR of your loan will be dependent on the loan you apply for as well as your personal financial needs. For example, you would need to pay S$311/month for a S$10,000 Debt Consolidation Plan with a loan tenure of 3 years at 3.98%pa Interest Rate (7.70% EIR). This would equate to a total payment of S$11,393 over 3 years. Please view each Debt Consolidation Plan product in detail for a full breakdown of the interest rate chargeable, minimum and maximum loan tenure as well as processing fees (if applicable).
Debt Consolidation Plan interest rates and packages are extremely dynamic; they can vary significantly depending on your loan tenure (period), the loan amount, your citizenship status, and your income.
To find a more accurate quote, please use MoneySmart’s Debt Consolidation Plan Calculator at the top of the page and enter the variables as accurately as possible. Our Debt Consolidation Plan Calculator will generate a list of loan packages, interest rates and repayment plans tailored to the information you entered.
You can always adjust the loan amount and loan tenure to find a comfortable monthly repayment amount. Note that our Debt Consolidation Plan Calculator can only give you an estimate of the interest rates; the provider has final say on the rates they offer you.
Debt consolidation plans are not for everyone. There are 3 main eligibility criteria you have to meet:
A debt consolidation plan is really just a special type of personal loan. So, if you do not meet the qualifying criteria, such as the citizenship or outstanding debt requirements, you can still apply for a regular personal loan to pay off your high-interest debt. Here’s how:
In light of the Covid-19 situation, Singapore citizens and PRs have another option for dealing with high-interest unsecured debt from credit cards or credit lines. From now until 31 Dec 2020, you can ask your bank/financial institution to convert your credit card debt into a term loan with a standard Effective Interest Rate of 8% p.a.
You can choose a loan tenure of up to 5 years. There is no penalty for early repayment of this loan and your credit score will not be affected. However, you will need to prove that your income fell by at last 25% due to Covid-19.
If you are currently already on a debt consolidation plan but have trouble repaying due to Covid-19-related income loss, you can apply for financial relief from now until 31 Dec 2020. You can get your loan tenure extended up to 5 years. All you need to do is speak to your current DCP provider and prove that Covid-19 has affected your income. At the time of application, your repayments should be between 30 to 90 days past due. This loan extension will not affect your credit bureau report.