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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:
Only Singapore citizens and PRs are eligible for a debt consolidation plan.
You must earn between S$20,000 and S$120,000 per year, and your net personal assets should be less than S$2 million.
You have to be heavily enough in debt to apply. Your total outstanding unsecured debt must be at least 12 months’ salary to apply.
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:
Compare personal loan interest rates on MoneySmart and apply for a loan package that suits you.
Once your personal loan is disbursed, use the cash to pay off your high-interest debts e.g. credit card bills. Don’t spend it!
Commit to your personal loan repayment plan, and avoid incurring any further debt. Consider cancelling your credit cards/lines.
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.