Best Debt Management Plan Companies in Singapore

If mounting debt repayments are becoming unmanageable, approaching a debt consolidation company could be a viable solution.

A debt consolidation company offers plans that combine multiple unsecured debts — such as credit card balances and personal loans — into a single loan with a lower interest rate. This structured repayment plan typically spans three to five years, making it easier to clear outstanding balances while reducing overall interest costs.

The terms and fees associated with such plans vary by the debt consolidation company. In some cases, individuals facing financial difficulties may be eligible for fee waivers or lower interest rates, helping them regain financial stability more effectively.

» MORE: How do debt consolidation plans work in Singapore?

Taking a S$30,000 loan with a tenure of 5 years as a reference, here’s how debt management plans from various banks in Singapore measure up:

Under Ministry of Law rules, licensed moneylenders can charge up to 4% interest per month on outstanding loans, plus a late interest cap of 4% per month only on overdue sums, with tightly regulated admin and late fees. This works out to an effective annual rate in the high-20% range, making debt consolidation plans from moneylenders far costlier than those offered by banks.

Some licensed moneylenders verified by MinLaw include Credit 21, 1AP Capital, Lending Bee, GS Credit, Quick Credit, Bugis Credit, Horison Credit, Credit Thirty3, Katong Credit, and OT Credit.

Debt consolidation plans by licensed moneylenders may suit those who don’t qualify for a bank DCP or need urgent short-term cash flow. But the higher cost means they should only be considered as a last resort, after exploring bank plans or credit counselling.

• Annual interest rate: 4.5%

• Effective interest rate: 8.0%

• Processing fees: None

• Maximum tenure: 10 years

SingSaver’s take

HSBC offers one of the lowest interest rates for a Debt Consolidation Plan (DCP) in Singapore, starting from 4.5% p.a. (EIR 8.0% p.a.), with a repayment period of up to 10 years. This extended tenure allows for lower monthly repayments, making it a viable option for those looking to manage their debts effectively. However, the final interest rate offered will depend on factors such as your Credit Bureau report and overall financial profile.

• Annual interest rate: 3.48%

• Effective interest rate: 6.33%

• Processing fees: S$199 joining fee

• Maximum tenure: 10 years

SingSaver’s take

Standard Chartered offers a flexible monthly instalment plan with interest rates starting from 3.48% p.a. (EIR 6.33% p.a.), making it one of the most competitive DCPs available. Borrowers can select a repayment tenure of up to 10 years, allowing for greater control over their monthly repayment amounts. However, the final interest rate you receive is subject to Standard Chartered’s assessment of your Credit Bureau report and overall financial standing.

• Annual interest rate: 3.58%

• Effective interest rate: 6.56%

• Processing fees: S$99

• Maximum tenure: 8 years

SingSaver’s take

DBS offers a limited-time interest rate of 3.58% p.a. (EIR 6.56% p.a.), allowing borrowers to consolidate multiple debts into a single repayment plan with a flexible tenure of up to 8 years. This can help borrowers manage their finances more effectively by reducing the interest burden and making repayments more structured.

This plan is best suited for Singapore Citizens or PRs with substantial unsecured debts spread across multiple banks or credit lines, especially those who want the assurance of a fixed repayment schedule and prefer working with one of Singapore’s largest and most established banks. It’s particularly helpful for borrowers who have consistent income and are focused on long-term repayment discipline but need breathing space from high-interest credit card or personal loan rates.

• Annual interest rate: 5.95%

• Effective interest rate: 10.5%

• Processing fees: None

• Maximum tenure: 7 years

SingSaver’s take

Citi’s Debt Consolidation Plan offers a competitive interest rate starting from 3.99% p.a., with an effective interest rate (EIR) varying based on the loan tenure. Unlike many other DCPs, Citi does not charge a processing fee, making it a cost-effective choice for borrowers looking to consolidate multiple unsecured debts into a single repayment plan. Loan tenures range from 3 to 7 years, providing flexibility in managing monthly repayments.

• Annual interest rate: 4.5% (For tenures between 1 and 6 years; 5.5% for tenures between 7 and 8 years)

• Effective interest rate: 8.22% (Tiered based on loan tenure, going up to 10.41% for 8-year tenures)

• Processing fees: None

• Maximum tenure: 8 years

SingSaver’s take

UOB offers a Debt Consolidation Plan (DCP) with interest rates starting from 4.50% p.a. (EIR 8.22% p.a.) for a loan tenure of up to 8 years. This plan is designed to help borrowers streamline multiple unsecured debts into a single repayment, reducing overall interest costs and making debt management more manageable.

BOC Debt Consolidation Plan

• Annual interest rate: 6%

• Effective interest rate: 7.48% 

• Processing fees: Not mentioned

• Maximum tenure: 10 years

SingSaver’s take

BOC offers a Debt Consolidation Plan with an annual interest rate of 6% (EIR 7.48%) and a maximum tenure of up to 10 years. It provides borrowers with fixed monthly repayments for predictable financial planning and includes a complimentary BOC Family Card with no annual fee for the duration of the loan. While processing fees are not clearly stated, the plan is designed to give borrowers stability and additional value.

This plan is best suited for borrowers who prioritise long-term stability in repayments and want the peace of mind of a fixed instalment structure. It is ideal for Singapore Citizens or PRs aged 25 and above who earn at least S$30,000 annually and have significant unsecured debts exceeding 12× their monthly income. The added benefit of a no-fee credit card makes it attractive for those seeking to manage debt without losing day-to-day spending flexibility.

Not all DCPs are created equal, and the right plan for you will depend on factors like interest rates, loan tenure, and eligibility criteria. Here are some key considerations when selecting a DCP in Singapore:

• Compare interest rates and fees: DCPs offer lower interest rates than standard credit cards or personal loans, but rates can vary between banks. Look for a plan with the most competitive effective interest rate (EIR) and minimal processing fees to keep your repayments affordable. Some banks may also offer cashback incentives when you refinance from another provider.

• Choose the right loan tenure: DCPs typically offer repayment periods between three to 10 years. While a longer tenure reduces monthly instalments, it increases the total interest paid over time. Select a tenure that balances affordability with cost efficiency to avoid paying more than necessary.

• Consider additional benefits: Some DCPs provide extra perks like cashback for refinancing or a low-limit credit card to help manage daily expenses. If flexibility is important, check whether the plan allows early repayment without excessive penalties.

• Understand the long-term impact: While a DCP helps consolidate debt into a single monthly payment, it also comes with restrictions, such as limits on taking new unsecured loans until a portion of the debt is cleared. Ensure that you are comfortable with these terms before committing to a plan.

A DCP can be an effective way to manage and pay off your outstanding debts, but it’s not a one-size-fits-all solution. Before applying, consider whether a DCP aligns with your financial situation and repayment ability. You may benefit from a DCP if you:

• Have multiple unsecured debts: DCPs are designed to consolidate unsecured debt, such as credit card balances and personal loans, into a single loan with lower interest rates. However, secured debts — such as home loans or car loans — are not eligible for consolidation.

• Struggle to keep up with repayments: If you’re only able to make the minimum payment on your debts or have missed multiple payments, a DCP can help streamline your repayment into a single monthly instalment, potentially reducing interest rates and helping you clear your debt faster.

• Have a stable income: To qualify for a DCP in Singapore, you need to be a Singapore Citizen or Permanent Resident with an annual income between S$30,000 and S$120,000. You also need to have unsecured debts exceeding 12 times your monthly income. A steady income is required to show that you can commit to monthly repayments.

• Can’t qualify for other debt repayment options: Other debt management tools, such as balance transfer credit cards, may offer interest-free repayment periods, but these typically require a good credit score for approval. DCPs do not have a credit score requirement, making them a viable option for individuals struggling with debt repayment.

• Are comfortable with credit restrictions: When you take on a DCP, you’ll generally be required to close all unsecured credit facilities across financial institutions, except for one low-limit credit card for daily expenses. This means you won’t be able to take on new unsecured loans until a significant portion of your DCP is repaid.

If a debt consolidation plan isn’t the right fit for you, there are other ways to pay off debt and regain financial stability. Here are some alternative strategies to consider:

Personal loans for debt consolidation

A personal loan can serve as an alternative to a DCP. By taking out a low-interest personal loan, you can consolidate multiple debts into a single fixed repayment. Unlike DCPs, personal loans are more flexible, and you may still be able to use credit facilities while repaying the loan.

However, interest rates for personal loans may be higher than DCPs, depending on your creditworthiness. Ensure the loan's interest rate and tenure make financial sense before committing.

Refinancing existing debts

If your current debts carry high interest rates, refinancing them at a lower rate can help ease your repayment burden. One way to do this is through a balance transfer credit card, which offers 0% interest for a limited period. This allows you to focus on paying down your debt without worrying about accumulating interest, making it a useful short-term strategy for debt repayment.

Another approach is to negotiate directly with your lender. Some banks may be willing to offer a lower interest rate or restructure your repayment plan if you communicate your financial difficulties. This could mean extending your loan tenure to reduce monthly repayments or securing a revised interest rate to make the loan more manageable. 

» MORE: Are you accumulating debt without knowing it?

Debt relief options

If your debts significantly exceed your income, more drastic measures such as debt restructuring or bankruptcy may be required. While these options should only be considered as a last resort, they can provide a path to financial recovery if you’re unable to meet repayment obligations.

» MORE: Strategies for crushing debt in Singapore