Excellent! ROSHI has found 7 Debt Consolidation Plans that suit your criteria.

OCBC Debt Consolidation Plan

3.5Good to Excellent
  • Monthly repayment remains the same throughout the 8-year loan tenure
  • Enjoy an affordable interest rate of 6% p.a. (EIR 10.46% p.a.) on your Debt Consolidation Loan amount
Apply Now

on OCBC's website

Account Information

  • Base Interest Rate

  • AmountInterest Rate (p.a.)

Fees and Charges

Cheque Book Fee

Eligibility

  • Age requirement21 and above

UOB Debt Consolidation Plan

3.5Good to Excellent
  • Only applicable to Singaporeans and Singapore Permanent Residents (PR)
  • Enjoy interest savings from as low as 4.50%p.a. (EIR 8.22%p.a.) with loan tenure of 6 years.
Apply Now

on UOB's website

Account Information

  • Base Interest Rate

  • AmountInterest Rate (p.a.)

Fees and Charges

Cheque Book Fee

Eligibility

  • Age requirement21 - 64 years old

DBS Debt Consolidation

4.2Good to Excellent
PROMORefinance your existing debt consolidation plan with DBS and enjoy 3% cashback on approved loan amount Valid till 31st Dec 2020
  • Interest rates from as low as 3.58%p.a (6.56% p.a EIR). Note that the interest rate offered to you is based on your personal credit profile and may differ from the published rate.
  • Loan tenor of 1 – 8 years is available for affordable monthly repayment
Apply Now

on DBS's website

Account Information

  • Base Interest Rate

  • AmountInterest Rate (p.a.)

Fees and Charges

Cheque Book Fee

Eligibility

  • Age requirement21 - 65 years old

Standard Chartered Debt Consolidation Plan

3.5Good to Excellent
  • Enjoy interest savings as you manage only one account for all your outstanding balances with fixed monthly repayment
  • Enjoy an interest rate from as low as 3.98% p.a. (EIR 7.70% p.a.). Note that the interest rate offered to you may differ based on your personal credit profile.
Apply Now

on Standard Chartered's website

Account Information

  • Base Interest Rate

  • AmountInterest Rate (p.a.)

Fees and Charges

Cheque Book Fee

Eligibility

  • Age requirement21 - 65 years old

BOC Debt Consolidation Plan

3.8Good to Excellent
  • Fixed monthly repayment up to 10 years
  • Successful applicants get a complimentary BOC Family credit card upon approval, with the annual fee permanently waived during your BOC DCP tenure
Apply Now

on BOC's website

Account Information

  • Base Interest Rate

  • AmountInterest Rate (p.a.)

Fees and Charges

Cheque Book Fee

Eligibility

  • Age requirement25 and above

Citi Debt Consolidation Plan

3.8Good to Excellent
  • Enjoy interest saving with NO processing fees
  • Interest rates from as low as 3.99% p.a. (EIR 7.50% p.a.)
Apply Now

on Citibank's website

Account Information

  • Base Interest Rate

  • AmountInterest Rate (p.a.)

Fees and Charges

Cheque Book Fee

Eligibility

  • Age requirement21 and above

HSBC Debt Consolidation Plan

4.0Good to Excellent
  • Enjoy your personalised rates from as low as 3.8% p.a. (EIR 7% p.a.) + $0 processing fee, based on your personal credit profile.
  • Receive 5% cashback upon approval of your Debt Consolidation Plan refinancing with HSBC. Terms and Conditions apply.
Apply Now

on HSBC's website

Account Information

  • Base Interest Rate

  • AmountInterest Rate (p.a.)

Fees and Charges

Cheque Book Fee

Eligibility

  • Age requirement21 - 65 years old

  • Debt Consolidation Plans Basics

  • Tips and Hints

  • FAQs

  • Ask Away

Understanding Debt Consolidation Plan

A debt consolidation plan or DCP takes all of your unsecured debts and consolidates them into one plan. It is a great option for those with bad debt and a low credit score.

Your lender will pay off all of your unsecured loans and then set up a repayment plan with you directly. The interest rate will be lower than most of the debts you had to begin with, but you will have to pay an extra fee of roughly 5%.

You can get up to a full year of salary consolidated at once and set up a repayment scheme between 3 and 10 years of tenure.

How to Compare Debt Consolidation Loans?

The first question to ask yourself is how long you want to take to repay your debt. You can choose anywhere from a year to ten years.

After that, consider how much your total plan will be, including interest rates, extra fees, etc. Make sure to check the terms and conditions carefully to ensure that your new loan arrangements will save you money.

Best Debt Consolidation Plans in Singapore (2020)

Debt Consolidation PlanBest For
Standard Chartered Debt Consolidation PlanLow Monthly InstallmentsApply Now
HL Bank Debt Consolidation PlanFlexible TenureApply Now
Lending BeeEasy ApplicationApply Now
Citi Debt Consolidation PlanNo Processing FeeApply Now
POSB Debt Consolidation PlanFixed Monthly PaymentApply Now

How to Choose a Debt Consolidation Plan

Obviously, the first thing to look for in a DCP is a low interest rate. Consider the length of tenure as well. Once you know the answer to these questions, all you need to do is pick the bank that has what you need.

How to Determine Your Eligibility for a Debt Consolidation Plan

For a start, you need to be a Singapore national or permanent resident. You will also need an annual income between $20,000 and $120,000 with a net worth below $2,000,000. Certain banks may have additional requirements.

Debt Consolidation Plan Benefits

A debt consolidation plan helps you get out of a large amount of unsecured debt. Instead of paying a variety of high interest rates, you can pay it all together with an average or low interest rate. You can get a DCP from a lender that you are not directly connected to as well. Debt consolidation plans also provide flexible repayment options.

What Extra Fees can I Expect with a DCP?

You will have to consider a few extra fees and charges, such as the following:

Processing Fees
Some banks have no processing fee while others can reach up to $600. Generally, banks with a low processing fee also have high interest rates.
Early Termination Fees
If you choose to pay off your DCP early to avoid some interest, you will still need to pay an early termination fee. The fee varies with each bank.
Late Fees
Late fees are activated if you don’t pay off the monthly repayment minimum on time.

Does a DCP Impact My Credit Score?

A DCP will impact your credit score in the same way any other loan repayment would. It will improve your credit score if you make repayments on time and reduce it if you don’t.

Final Considerations

If your total unsecured debts exceed 12 months of your salary, you will not be able to place it all into one DCP. On top of this, your credit score may also affect your interest rate. Lower interest rates may be offered to people with better credit scores.

Find the Lowest Possible Interest Rates

Before making any decision about a debt consolidation plan, check the current interest rates of each lender. Since you will be paying this interest rate for the entire duration of your loan, you want to get as low as possible.

You should also consider welcome offers such as a lower interest rate for the first few months, promotional rates, etc.

Make Sure You Never Miss a Payment

Make sure to sort out your budget long before setting up your debt consolidation plan. Missing payments will build up an insane amount of additional interest and late fees plus you won’t be able to use any other loan to refinance.

Forget Your Old Credit Facilities

Credit cards and other credit facilities that you used will become unavailable. You will not be able to use them as your debt has been transferred to the new bank. That being said, if requested you might get a new credit card with your new lender that you can use when necessary.

You can’t change the credit limit or interest rates, so do your best not to use this credit card either. That way, you can get through your debt consolidation plan faster. Using the credit card simply lengthens the time it takes for you to sort out your remaining debt.

Change Your Spending Habits

While a debt consolidation plan may help you keep track of your debt, it won’t resolve all of your money problems. You still need to find ways to change your spending habits. It is best to avoid taking any more loans while dealing with your debt consolidation plan.

What Exactly is a Debt Consolidation Plan?

A debt consolidation plan takes all of your current debts and merges them into one big loan. Doing so puts all of your debt under a single bank. The bank clears all of your outstanding debt and creates a new one for you made up of the total spent.

Doing so reduces the total interest you’ll need to pay and makes it much easier for you to keep track of debt payments.

Is a Debt Consolidation Plan Right For Me?

If you’re having trouble keeping up with high interest rates and long loan tenures, then a debt consolidation plan can help you rearrange your debt. Instead of juggling several different loans with various interest rates, you can have one single loan with a set interest rate.

Can All Debt Be Consolidated?

Not all can, actually. Only unsecured debt, like credit card balances, personal loans, etc., can be consolidated under a debt consolidation plan. Secured debts and some other specific loans, can’t be consolidated.

How does the Bank Work Out What I Owe Them?

The bank will take the total of your bills as well as the interest, then add another 5% on top of that. It seems like you’re paying more but you will likely save over time thanks to no olate payment penalties and fluctuating interest rates.

What Documents Should I Prepare for My Application?

You will need all of the following documents:

  • A copy of your NRIC (both sides)
    Your latest income documents
    A confirmation letter stating your unbilled balance (only needed for unsecured credit instalment plans)

Will I Owe More Using a Debt Consolidation Plan?

There is a 5% extra interest charge, this is the only additional expense, assuming you make your payments on time. This will likely allow you to save in the long-run, as you are less likely to lose track of your payments.

What Tenure Length Should I Expect?

Every lender has a different tenure length. In general tenure can range anywhere between 3 to 10 years.

Must I Consolidate all of My Outstanding Debt?

You will need to consolidate all of your unsecured debt. This is to allow you to enter a DCP where all of your debt is in one place. The purpose is to put all of your debt into one place and make it easier to manage.

What Else Do I Need to Know?

If you have a substantial amount of debt, your DCP may not cover all of it. If this is the case, you will need to deal with the remaining unconsolidated debt as well as your DCP.

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