Why Trust MoneySmart?In Singapore, the main ways to combine multiple debts into just one regular payment are through a Debt Consolidation Plan (DCP) with a participating bank, or a Debt Management Programme (DMP) run by Credit Counselling Singapore.
A DCP merges high-interest unsecured debts into a single new loan with one monthly instalment, while a DMP coordinates managed repayments to creditors under a central plan.
Both routes aim to simplify your finances and, in many cases, lower the overall cost of debt.
1. Debt Consolidation Plan (DCP)
A DCP is a bank facility that combines your high-interest unsecured debts—such as credit cards and personal loans—across financial institutions into one loan. This gives you fixed monthly repayments, typically at a lower rate than credit cards.
Key features and criteria:
Eligibility: You must be a Singapore Citizen or Permanent Resident, earn S$30,000–S$120,000 per year, and have total interest-bearing unsecured debt exceeding 12 times your monthly income.
Tenure: You can stretch repayments up to 10 years for affordability.
Account suspension: Your existing unsecured lines (like credit cards) are closed or suspended once approved.
Revolving credit: Most DCPs provide a new credit facility capped at one month’s income for daily essentials.
Participating banks: Major players include DBS, OCBC, UOB, HSBC, and Standard Chartered.
Watch out: Always check for processing fees and avoid building up new debt on any cleared credit lines.
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2. Debt Management Programme (DMP)
If you don’t qualify for a DCP or have smaller debts, Credit Counselling Singapore (CCS) offers a DMP.
How a DMP works:
Negotiation: CCS works with your creditors to set up a sustainable repayment plan, usually lasting 5–10 years.
No new loan: Unlike DCP, your debts are not merged—a central plan is agreed and you pay each creditor as arranged.
Getting started: Begin by attending a CCS debt advisory session.
Discipline: Stay committed to the schedule and always pay on time to avoid lapses.
3. Debt Repayment Scheme (DRS)
For more serious debt situations, the Debt Repayment Scheme (DRS) is a court-administered alternative.
What to know:
Eligibility: Only for total unsecured debts below S$150,000.
Activation: Usually triggered when you or a creditor files for bankruptcy proceedings.
Repayments: All payments are channelled through the Official Assignee, with you repaying over up to five years.
Summary of schemes for 2026
Feature | Debt Consolidation Plan (DCP) | Debt Repayment Scheme (DRS) |
Max Debt | No specific cap | S$150,000 |
Min Debt | >12× Monthly Income | No minimum |
Max Tenure | Up to 10 Years | Up to 5 Years |
Interest | Commercial (lower than credit cards) | 0% once effective |
Administration | Individual banks | Ministry of Law / Official Assignee |
💡 MoneySmart Tip |
Use trusted online comparison tools like MoneySmart's personal loan comparison to review personalised rates, eligibility, and requirements across major banks in Singapore—helping you make a more informed choice quickly. |
