4 Ways to Pay Off Credit Card Debt in Singapore

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4 Ways To Manage Credit Card Debt | SingSaver

If you’re struggling to keep up with your credit card monthly repayments in full, you’re officially in credit card debt. And you’re going to need a strategy to tackle this head on before it snowballs further.

When you’ve racked up high-interest debts from multiple accounts or credit cards, you should quickly move to consolidate all your debt in one place. Your new debt plan should have a lower interest rate than your existing debt, making payments more manageable and/or the repayment period shorter.

The 4 most effective ways to consolidate credit card debt are:

  1. Zero Interest or Balance Transfer Credit Cards
  2. Personal Instalment Loan
  3. Line of Credit
  4. Debt Consolidation Plan

1. Zero Interest or Balance Transfer Credit Cards

This type of credit card charges no interest for a promotional period, often 6 to 12 months, and allows you to transfer all your other credit card balances over to it. Make a disciplined plan to clear any unpaid amount by the end of the promotional period because any remaining balance after is subject to a regular credit card interest rate of 25.9%.

Many issuers charge a processing fee of around 3-6%, and some also charge an annual fee. Before you choose a balance transfer, calculate if the interest you save over time will cover the cost of the fee.


  • 0% promotional interest rate
  • Higher chances of eligibility as loan is on a credit card application


  • Processing fee (compare welcome offers on SingSaver where fee is waived)
  • Shorter repayment periods
  • High interest kicks in immediately after promotional period ends

Compare best 0% interest or balance transfers with repayment over 6 months

Here’s a quick comparison chart if you’re looking for a short-term loan of S$10,000 for six months.

Compare the 0% interest rate on balance transfers with the 25.9% average interest on late credit card payments and you can save hundreds, if not thousands, of dollars each month. For example, if you take the best offer of Standard Chartered’s Funds Transfer, you’re paying a 0.9% processing fee on S$10,000 (which amounts to S$90), and you still save a lot. The catch is, of course, that you must pay the S$10,000 loan in full by the end of the 6 months in order not to get hit by high interest rates again.

Comparison table for personal loan for 6 months

*Rate available on SingSaver platform, not via bank
**Rate varies depending on credit profile

Best Balance Transfer Offers

2. Personal Instalment Loan

You can use an unsecured personal instalment loan to consolidate credit card or other types of debt. The loan may give you a lower interest rate on your debt and a fixed repayment period (12 to 84 months) to clear off your debt.


  • Fixed interest rate and monthly payment
  • Fixed payment period


  • Customers with excellent credit, higher incomes or loan amounts enjoy lowest rates
  • May carry processing fee

Compare best personal loans with repayment over 3 years (36 months)

Here’s how a S$20,000 loan for 3 years (36 months) looks like for someone earning below and above S$80,000 annually. For someone above this threshold, then the HSBC Personal Loan is a winner and the best choice at 3.7% flat interest rate.

If not, the Standard Chartered CashOne loan is the winner at 3.88% flat interest rate. And the best part – instant loan approval and disbursement!

Apply for the Standard CashOne Personal Loan by 31 May 2019 and receive $100 + $1,000 in welcome gifts and bonus cash!

Exclusively for the month of May 2019, SingSaver is running a promotion that is rewarding you with up to $1,100 in additional welcome cash if you apply for the Standard Chartered CashOne Personal Loan! Simply apply through our promotion page and tell us what you would do if you had an additional $1,000 cash and why.

The top 3 most inspirational answers will win $1,000 in cash! Terms and conditions apply.

Standard Chartered CashOne Personal Loan
Standard Chartered Bank CashOne Personal LoanApply Standard Chartered CashOne Personal Loan now

Best personal loan for 36 months

*Rate available on SingSaver platform, not via bank
**Rate varies depending on credit profile


3. Line of Credit

The third type of personal loan is the line of credit, which is an overdraft facility that only charges interest when you withdraw from the account. The loan gives you a lower interest rate compared to your credit card and offers a flexible repayment period to clear off unpaid credit card debt. Treat the line of credit as a standby cash facility for emergency use, as it’s available for immediate withdrawal should the need arise. 


  • Lower interest rate than a credit card
  • Flexible repayment period
  • Standby cash


  • Higher interest rates than personal instalment loans

Save money and compare best line of credit plans on SingSaver

Best Line of Credit Offers

4. Debt Consolidation Plan

The fourth type of personal loan is the Debt Consolidation Plan, which is a government-approved scheme available with all leading banks in Singapore.  If you have several open unsecured loans – such as lines of credit and credit cards – and your debt is more than 12 times your monthly income, you can go for a Debt consolidation plan.


  • Fixed interest rate and monthly payment
  • Fixed payment period
  • Long repayment period of up to 10 years


  • Other loan facilities are closed or suspended until you clear this loan

Save money and compare best debt consolidation plans

Bank Name Annual Flat
Interest Rate
EIR (Effective
Interest Rate)
Annual Fees
Interest +
HSBC 4% p.a. 7.5% p.a. $0 $9,600 $9,600 $2,488.89
SCB 4.5% p.a. 8.64% p.a $199 $10,800 $10,999 $2,522.22
UOB 4.5% p.a. 8.41% p.a. $0 $10,800 $10,800 $2,522.22
DBS 4.58% p.a. 8.65% p.a. $99 $10,992 $11,091 $2,527.56
Citibank 5.67% p.a. 10.5% p.a. $0 $13,608 $13,608 $2,600.22
OCBC 6% p.a. 11.08% p.a. $0 $14,400 $14,400 $2,622.22

*Rate available on SingSaver platform, not via bank
**Rate varies depending on credit profile

Find the best Debt Consolidation Plan for you on SingSaver

What to read next:

SCB Funds Transfer Review: Great to Pay Off Credit Card Debt
Personal Loans: A Beginner’s Guide
Four Types of Personal Loans: What You Need to Know
3 Ways to Better Manage Credit Card Debt in Singapore
4 Times In Life You Should Consider Getting a Personal Loan

Rohith Murthy

By Rohith Murthy
Rohith leads SingSaver, a financial comparison site aimed at helping consumers in Singapore save money and time by finding the right financial products.