Best Debt Consolidation Plans in Singapore 2025

Our debt consolidation plan calculator is a great starting point to estimate your monthly repayments. But keep in mind that it’s just an estimate.

The EIRs of these debt consolidation loans are between 6.42% and 8.22%, but keep in mind that the final interest rate, tenure, and monthly amount you’re offered will ultimately depend on your personal credit profile, as well as your debt amount, and the bank’s internal assessment.

For instance, while the calculator might show an effective interest rate (EIR) of 7.7% p.a., your actual rate may vary due to processing fees, administrative charges, or your credit score. Some lenders may also reject applications if you don’t meet certain internal criteria—even if you qualify on paper.

The calculator helps you visualise how different loan tenures and interest rates affect your monthly repayment. Simply input your total outstanding debt (e.g. S$50,000) and your preferred repayment period (e.g. 3 years).

Want to see how shorter tenures reduce total interest paid but increase monthly repayments? Try toggling between 1-, 3-, or 5-year options. Longer terms reduce monthly payments but result in higher total interest.

A debt consolidation plan (DCP) is a type of personal loan designed to help you combine multiple unsecured debts such as credit cards, personal loans, or credit lines, into a single loan with a lower interest rate.

Instead of paying off several loans with different due dates and interest charges, you’ll make one fixed monthly repayment. This not only simplifies your finances, but also saves you money on interest—especially if you’re currently paying extremely high interest rates on your credit card.

Once your DCP is approved, the bank will pay off all your outstanding debts directly to the various lenders on your behalf. After that, you’ll owe only the bank that issued the DCP, repaying them at a lower and more manageable rate over time.

Some DCPs even offer daily transport or cash allowances to support your finances while you focus on repaying your debt.

Not everyone qualifies for a DCP. These plans are regulated by the Monetary Authority of Singapore (MAS) and meant for Singaporeans facing significant debt challenges. You’ll need to meet specific requirements on citizenship, income, and debt levels to be eligible.

Citizenship

To qualify for a DCP, you must be a Singapore citizen or permanent resident (PR). Foreigners are not eligible, even if they work and live in Singapore.

Income and net worth

You must earn between S$20,000 and S$120,000 annually and have net personal assets below S$2 million. This range targets the middle-income segment most vulnerable to high-interest debt.

Outstanding debt

You must also owe at least 12 times your monthly income in unsecured credit across financial institutions. This ensures DCPs are reserved for borrowers with a high debt-to-income ratio who genuinely need help.

If you don’t meet the criteria, you can still manage your debts using a personal loan. Just do it similar to how a DCP works—borrow a lump sum at a lower interest rate, and use it to pay off your higher-interest debts.

The key is discipline: make sure you immediately repay all your other loans once the funds are disbursed. Don’t treat the loan as free money, or you’ll end up deeper in debt.

This DIY approach offers flexibility but requires commitment to succeed.