Debt Consolidation | Lendingpot Singapore

Q: Is Lendingpot a lender?

No. Lendingpot is a loan matching platform. We help you compare debt consolidation offers from banks and licensed moneylenders at no cost, and the loan itself is provided by the lender you choose.

Q: Does debt consolidation affect my credit score?

Applying involves a credit check, and taking on a new facility can influence your credit profile. Making your consolidated repayments on time supports your record over time, while missed payments can harm it.

Q: Will debt consolidation lower my interest rate?

It often can, because credit cards in Singapore typically charge around 26% per annum, which is higher than most consolidation loans. The exact rate depends on the lender and your profile, so it is worth comparing offers before you decide.

Q: Can I consolidate my debts through a licensed moneylender?

Yes. If you do not qualify for a bank plan or need faster access to funds, a licensed moneylender can offer a personal loan to consolidate your debts and stretch out your repayment. It can also help clean up your bad credit with the bank, allowing you to apply for a loan again once your credit score has improved. Their interest rates and fees are capped by the Ministry of Law, and you should always confirm the lender is on the Registry of Moneylenders.

Q: What debts can be consolidated?

You can usually consolidate unsecured debts such as credit card balances, personal loans and lines of credit. Secured debts like housing and car loans, along with renovation, education and business loans, generally cannot be included.

Q: Who is eligible for a debt consolidation plan?

For a bank Debt Consolidation Plan, you generally need to be a Singapore Citizen or Permanent Resident with a net annual income between S$20,000 and S$120,000, net personal assets below S$2 million, and unsecured debt of more than 12 times your monthly income. If you fall outside these criteria, a licensed moneylender may offer a consolidation loan instead.

Q: What is a debt consolidation plan in Singapore?

A debt consolidation plan combines your unsecured debts, such as credit cards and personal loans, into one facility with a single monthly repayment. In Singapore, it is offered by participating banks under a scheme supported by the Association of Banks in Singapore, and the aim is to simplify repayment and reduce your overall interest cost.

Why Consider Consolidating Your Debts

When your debt is spread across several cards and loans, the minimum payments alone can stretch your budget, and high credit card interest makes the balance hard to clear. Consolidating can help in a few practical ways:

One repayment to manage instead of five or six, which makes a missed payment less likely.
A potentially lower interest rate than credit cards, which in Singapore typically charge around 26% per annum.
A fixed repayment timeline, so you know exactly when you will be debt free.
A clearer view of your finances, without juggling multiple statements.

How much you save depends on the interest rate and tenure you qualify for, so it is worth comparing offers before you commit.

Bank and Licensed Moneylender Debt Consolidation Options

Debt consolidation in Singapore is not limited to banks. Depending on your situation, you may qualify for a bank Debt Consolidation Plan, or a consolidation loan from a licensed moneylender. Lendingpot helps you compare both.

Bank Debt Consolidation Plan (DCP)

The Debt Consolidation Plan is a scheme offered by participating banks and finance companies, regulated by the Monetary Authority of Singapore and supported by the Association of Banks in Singapore. It combines your unsecured debts across different banks into one facility with a single monthly instalment. A DCP suits borrowers whose unsecured debt has grown beyond what they can comfortably service on their own.

Licensed Moneylender Consolidation Loans

If you do not meet the criteria for a bank DCP, or you need funds more quickly, a licensed moneylender may offer a personal loan you can use to consolidate your debts. Interest rates and fees for licensed moneylenders are capped by the Ministry of Law, so you are protected from excessive charges. Always check that a lender is listed on the Registry of Moneylenders before you borrow.

What Types of Debt Can Be Consolidated

Debt consolidation is designed for unsecured debt. You can typically consolidate:

Credit card and charge card balances
Personal loans and lines of credit
Other unsecured debts held with banks in Singapore

Some debts cannot be included, because they are secured against an asset or fall outside the scheme. These usually include:

Housing loans and car loans
Renovation loans, education loans and medical loans
Business loans and joint-account debts
Any balances held with overseas institutions

How Lendingpot Helps You Compare Options

Lendingpot is a loan matching platform, not a lender. We connect you with our network of banks and licensed moneylenders so you can compare debt consolidation offers side by side, then choose the one that fits you. You submit a single application, receive personalised offers, and compare the interest rate, tenure and monthly repayment before you decide. There is no cost to compare, and you are never obligated to accept an offer.

Requirements For Debt Consolidation Loans

Compare Debt Consolidation Options

To obtain a bank debt consolidation loan in Singapore, you are expected to satisfy the following requirements:

Singapore Citizen or Permanent Resident with a net annual income between S$20,000 and S$120,000

Net personal assets below S$2 million

Total unsecured debt of more than 12 times your monthly income.

If your income or debt level falls outside these bands, a licensed moneylender consolidation loan may be an option instead.

*Final eligibility is always assessed by the lender, so it is best to confirm your standing before applying.

What to Consider Before Applying

Debt consolidation restructures what you owe, it does not erase it. Before you commit, keep a few things in mind:

Look at the total cost over the full tenure, not just the monthly repayment. A longer tenure lowers the monthly amount but can raise the total interest you pay.
Check for processing fees, early repayment charges and any other costs.
Avoid taking on new debt once you consolidate, or you may end up worse off than before.
Confirm the final rates, tenure and terms directly with the lender before signing.
Borrow only what you can realistically repay. Missing repayments can affect your credit record and make future borrowing harder.

If a single loan makes more sense for your situation, you can also compare personal loan options in Singapore or estimate repayments with our personal loan calculator before you decide.

Frequently Asked Questions About Debt Consolidation In Singapore

Have a different question? View all FAQs here

Is Lendingpot a lender?

Does debt consolidation affect my credit score?

Will debt consolidation lower my interest rate?

Can I consolidate my debts through a licensed moneylender?

What debts can be consolidated?

Who is eligible for a debt consolidation plan?

What is a debt consolidation plan in Singapore?

Disclaimer: At Lendingpot, we aim to provide accurate, objective and up-to-date information. The details you see on our site may be different from others. Some content may be compensated through third-party advertisers. However, the results of our comparison tools which are not marked as sponsored are based on objective analysis. All financial products and services are presented without warranty. The list of financial products displayed on this website are not exhaustive.

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Debt Consolidation In Singapore: Compare Plans and Loans In One Place

What is a Debt Consolidation

Why Consider Consolidating Your Debts

Bank and Licensed Moneylender Debt Consolidation Options

Bank Debt Consolidation Plan (DCP)

Licensed Moneylender Consolidation Loans

What Types of Debt Can Be Consolidated

How Lendingpot Helps You Compare Options

Requirements For Debt Consolidation Loans

How to Apply for A Debt Consolidation Loan In Singapore?

What to Consider Before Applying

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