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How A Balance Transfer Can Help You Pay Off Holiday Debt

Annette Anthony

Annette Anthony

Last updated 14 April, 2022

With travel restrictions beginning to ease, many of us are planning our next holiday. If you’re looking for a way to fund your vacation without swimming in debt, you’re in the right place. Balance transfer may just be the answer to avoiding high credit card interest rates.

You’re itching for a vacation, and even more so with borders opening up. A KitKat just won’t do for a break anymore. 

There are only a few things you could dread when it comes to vacations – saying goodbye to savings or saying hello to more debt. 

Well, it doesn’t have to be that way. Saying hello to balance transfer instead could actually ease expenses by avoiding crazy-high bank rates. 

What exactly is a balance transfer? It is a way to move outstanding debt from your credit card to another bank at a much lower —or sometimes even 0% — interest rate. 

But before we go into balance transfer options, let's figure out your travel expenses.

What you need to pay for an overseas holiday

First, you must decide how much you can actually spend for this holiday.

Expenses for holidays will vary by country, so we’ll keep it simple by picking a specific place and country. Case in point — Bangkok, Thailand.

Expenses (2 pax) Cost (in S$)
Plane Ticket (Scoot Airlines) 512
Airbnb (including cleaning fees, 4 nights) 192
Transportation Cost (Taxi or Grab) 102 (estimate, including toll and airport taxi)
Food (mid-range, 4 days) 218
Shopping 300
Nightlife 250
Travel Insurance 121.60
Emergency Buffer Fund 300
   
Grand Total 1995.60
Source: Scoot, AirBnB, TripSavvy, Thaizer, Thaitravelessentials

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SingSaver's Best Price Travel Campaign: All successful applicants of participating Travel Insurance products will receive 1x (single trip) or 3x (annual trip) draw chance to enter our weekly lucky draw, where 1 lucky winner will stand to have their flight ticket reimbursed (up to a maximum of $2,000) and 12 lucky winners will receive a Samsonite Volant Spinner 68/25 EXP worth S$480. Valid till 31 December 2023. T&Cs apply.

Travel Insurance Premium for Individual Cover Covid-19 Coverage Promotion

FWD Travel Insurance

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from S$22.50 (for 1 week in Asean)

Yes

Use the promo code ENDSEP to get 25% off on Single Trip and Annual Trip plans. Valid till 27 September 2023. T&Cs apply. 

Receive 1x Airalo eSim with up to 3GB data (minimum premium $60). Valid till 3o Sep 2023. T&Cs apply. 

Plus, till 30th September, every 58th sign up scores a Samsonite Volant Spinner 68/25 EXP worth S$480. Additionally, enjoy up to 3x chances to enter our Weekly Lucky Draw, where 1 lucky winner will stand to have their flight ticket reimbursed and 12 lucky winners will receive a Samsonite Volant Spinner 68/25 EXP worth S$480. T&Cs apply.

Etiqa (TIQ) Travel Insurance
Tiq_Etiqa_LogoLockUp-02

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from S$39 (for 1 week in Asean)

Yes

Single Trip: Use the promo code TIQSINGSAVER to get 40% off. T&Cs apply. Valid till 30 Sep 2023. T&Cs apply.

Annual Trip: Use promo code TIQSINGSAVER to get 60% off COVID-19 add-on. Valid till 30 Sep. T&Cs apply.

Plus, till 30th September, every 58th sign up scores a Samsonite Volant Spinner 68/25 EXP worth S$480. Additionally, enjoy 1x chance (Single Trip) or 3x chances (Annual Trip) to enter our weekly lucky draw, where 1 lucky winner will stand to have their flight ticket reimbursed and 12 lucky winners will receive a Samsonite Volant Spinner 68/25 EXP worth S$480. Promotion ends on 31 December 2023.  T&Cs apply.

Plus, new customers get additional S$30 off on top of the discount with voucher code FREETRAVEL. Valid till 30 Sep 2023. T&Cs apply. Additionally, stand to win S$3,000 in TIQ Travel Insurance Monthly Lucky Draw Campaign 2023 (Fulfillment by TIQ). Valid till 31 Dec 2023.

Starr TraveLead Travel Insurance


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from S$11.05 (for 1 week in ASEAN)

Yes

Receive up to $50 Grab Vouchers and 35% discount plus an EXCLUSIVE Agoda promo code when you apply using the promo code SSVTL35. Valid till 30 September 2023.

Additionally, enjoy 1x chance (Single Trip) or 3x chances (Annual Trip) to enter our weekly lucky draw. 1 lucky winner will stand to have their flight ticket reimbursed and 12 lucky winners will receive a Samsonite Volant Spinner 68/25 EXP worth S$480. Promotion ends on 31 December 2023. T&Cs apply.

Allianz Travel Insurance
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from S$34.10 (for 1 week in Asean)

Yes

Get 35% discount and receive up to S$50 worth of Grab vouchers when you use the promo code G035. Valid till 30 Sep 2023. T&Cs apply.

Additionally, enjoy 1x chance (Single Trip) or 3x chances (Annual Trip) to enter our weekly lucky draw, where 1 lucky winner will stand to have their flight ticket reimbursed and 12 lucky winners will receive a Samsonite Volant Spinner 68/25 EXP worth S$480. Promotion ends on 31 December 2023. T&Cs apply.

MSIG Travel Easy

 

from S$34.10 (for 1 week in ASEAN)

Yes

Enjoy 40% off when you apply for Single Trips and 20% off for Annual Plan plus get up to $38 Grab Vouchers when you purchase now!! Valid till 31 Sep 2023. T&Cs apply

Enjoy up to 3x chances to enter our Weekly Lucky Draw, where 1 lucky winner will stand to have their flight ticket reimbursed and 12 lucky winners will receive a Samsonite Volant Spinner 68/25 EXP worth S$480. T&Cs apply.

Singlife Travel Insurance

SINGLIFE_LOGO_200x50-2 

 

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 from S$46.20 (for 1 week in ASEAN)  Yes

Score an Airalo eSIM with up to 3GB data and receive it before you fly when you apply now! Valid till 30 Sep 2023. T&Cs apply.

Additionally, enjoy 1x chance (Single Trip) or 3x chances (Annual Trip) to enter our weekly lucky draw, where 1 lucky winner will stand to have their flight ticket reimbursed and 12 lucky winners will receive a Samsonite Volant Spinner 68/25 EXP worth S$480. Promotion ends on 31 December 2023. T&Cs apply.

Single Trip: Enjoy a 25% discount when you use the promo code TRAVEL25. Valid till 30 Sep 2023. T&Cs apply.

Allied World  Travel Insurance

Allied-World-Insurance-2

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 from S$45 (for one week in Asean) Yes

Single Trip: Enjoy a 30% discount when you apply now! Valid till 30 Sep 2023.

Annual Trip: Enjoy a 10% discount when you apply now! Valid till 30 Sep 2023.

Additionally, enjoy 1x chance (Single Trip) or 3x chances (Annual Trip) to enter our weekly lucky draw, where 1 lucky winner will stand to have their flight ticket reimbursed and 12 lucky winners will receive a Samsonite Volant Spinner 68/25 EXP worth S$480. Promotion ends on 31 December 2023. T&Cs apply

AIG Travel Guard® Direct 

aig-logo

 

from S$30 (for 1 week in Asean) Yes

Single Trip: Apply promo code SSTGD and receive up to $50 worth of Grab eVouchers! (minimum premium $100, fullfilment by AIG)  Valid till 30 Sep 2023. T&Cs apply.

Annual Trip: Get up to 6 Plaza Premium Lounge Access Passes with the promo code SSTGD when you apply NOW! Fulfillment by AIG. Valid till 30 Sep 2023. T&Cs apply.

Additionally, enjoy 1x chance (Single Trip) or 3x chances (Annual Trip) to enter our weekly lucky draw, where 1 lucky winner will stand to have their flight ticket reimbursed and 12 lucky winners will receive a Samsonite Volant Spinner 68/25 EXP worth S$480. Promotion ends on 31 December 2023. T&Cs apply.

Great Eastern Travel Insurance

Great-Eastern-1

 

 from S$52 (for one week in Asean) Yes

Single Trip: Get an 20% discount when you use the promo code TSP20S.

Annual Trip: Get an 10% discount when you use the promo code TSP10A. 

Additionally, enjoy 1x chance (Single Trip) or 3x chances (Annual Trip) to enter our weekly lucky draw, where 1 lucky winner will stand to have their flight ticket reimbursed and 12 lucky winners will receive a Samsonite Volant Spinner 68/25 EXP worth S$480. T&Cs apply.

Promotion ends on 31 December 2023. T&Cs apply.

It’s important to have a list of travel expenses (as above), as a guide on what expenses to look out and plan for. 

If you’d like to see the latest travel insurance deals to keep you safe, you may choose the best one on our travel insurance page. 

Why balance transfers are the hidden gems in financing your holiday break

The average Singaporean household spends about S$4,080 yearly on vacations. This is split into one to three vacations annually.

Now, let’s say you want to pay for a mid-range vacation with your family that costs about S$3,000. If you were to apply for a Standard Chartered Balance Transfer, you’d be eligible for a 0% interest rate for six months with a processing fee of 4.5% of your approved loan amount (the Effective Interest Rate or EIR is at 4.86% per annum). There’d also be a processing fee of S$45.

On the same front, the HSBC Balance Transfer offers you a lucrative 4.88% interest rate with no processing fee if you take a 12-month tenure, regardless of the balance transfer sum.

Meanwhile, the DBS Balance Transfer has a 0% balance transfer rate for six to 12 months with a processing fee of either 2.5% (EIR of 5.06% per annum for Cashline accounts) or 4.5% (EIR of 5.2% per annum for credit cards).

All three banks offer a 0% transfer rate.

Balance Transfer Rates for S$3,000 with a Repayment Period of 6 Months

Bank Prevailing Interest Rate Processing Fees Transfer Rate
Standard Chartered 26.9% S$45 0%
HSBC 18.5% S$75 0%
DBS 25.9% S$75 0%
*prevailing EIR rates apply

You can calculate other balance transfer offers and see the latest promotions on our page. 

How to ensure you enjoy the benefits of balance transfers

Balance transfers allow you the freedom to budget your holiday plan, but much like Buy Now, Pay Later, there are a few things you must take into account. You need to ensure that you:

  • Avoid the late payment fees by paying your balance transfer sums on time
  • Meet the monthly repayment sums to avoid unwanted interest rates after the interest-fee period of that specific sum
  • Understand that your balance transfer sum is tied to your credit card limit or your cashline account
  • Have sufficient funds to pay for the monthly repayments from your balance transfer loan

Having a repayment plan will allow you to fully enjoy that pandemic-stress-release holiday without money woes. So it’s equally important to tick all the financing boxes along with your travel requirements. 

COVID-19 travel restrictions (as of 13th April 2022)

The most obvious thing you need to do is pick a destination. Do you want to sip mojitos by a Maldives beach or indulge in a shopping/massage weekend in JB? 

Once you’ve decided on that, figure out the travel regulations you’ll be adhering to. There are two major lists of requirements for exiting Singapore and returning to Singapore.

Leaving Singapore

Before you leave the country, ensure that you have covered all aspects. Nobody wants a glitch in their arrival documents!

These are the major requirements you may come across: 

  • COVID-19 tests to take before departing 
  • Accepted vaccination cards
  • Proof of past COVID-19 infection (if applicable) 
  • Passport validity (usually more than 6 months)
  • On-arrival COVID-19 tests (depending on the country) 

The Ministry of Foreign Affairs has created a detailed list (in alphabetical order) on the requirements you need to fill for departure to each country here.

Re-entering Singapore

Under the Immigration & Checkpoints Authority website, you’ll find the COVID-19 Vaccinated Travel Framework. This is split into two segments: a checklist for fully vaccinated travellers and another for non-vaccinated travellers (for ages 13 and above).

You will find the requirements by clicking the self-help tool, which will redirect you to either one of the two checklists mentioned above, including additional details such as:

  • Filling up the SG Arrival Card
  • Using TraceTogether or HealthHub to verify your vaccination status in Singapore
  • Symptomatic travellers may need to take a COVID-19 test (the Antigen Rapid Test would cost you S$30 while the Polymerase Chain Reaction Test S$138) or be subject to any other requirements from the officers

Read these next:
Best Balance Transfers in Singapore (2021)
Balance Transfer: How Does It Work And Should You Get One?
Understanding Balance Transfers: How Much Can You Really Save in Interest?
Unpaid Credit Card Bills? Here's How a Balance Transfer Can Help



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