Singapore Debt Consolidation Calculator
Monthly Savings: $530
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| Current Debts | Consolidation | |
| Debt Comparison | Amount (SGD) | Amount (SGD) |
| Total Debt Balance | $50,000 | $50,000 |
| Monthly Payment | $1,530 | $1,000 |
| Weighted Average Rate | 19.2% | 8.5% |
| Total Interest Cost | $28,500 | $10,200 |
| Payoff Time | 4.2 years | 5.0 years |
| Monthly Savings | - | $530 |
| Savings Analysis | Amount | |
| Monthly Payment Reduction | $530 | |
| Total Interest Savings | $18,300 | |
| Break-even Period | 3 months | |
| 5-Year Total Savings | $31,800 | |
| Cost Analysis | Amount | |
| Processing Fee | $1,000 | |
| Early Repayment Penalty | $500 | |
| Legal & Admin Fees | $300 | |
| Total Upfront Costs | $1,800 | |
| Recommendation | Status | |
| Consolidation Benefit | Highly Recommended | |
| Risk Level | Low | |
| Net Benefit Score | 9.2/10 | |
Debt Payoff Timeline Comparison
| Debt Type | Balance | Interest Rate | Monthly Payment |
|---|---|---|---|
| Credit Card 1 | $15,000 | 24.0% | $450 |
| Credit Card 2 | $12,000 | 26.5% | $380 |
| Personal Loan 1 | $18,000 | 12.5% | $520 |
| Personal Loan 2 | $5,000 | 15.0% | $180 |
| Total Current Debts | $50,000 | 19.2% | $1,530 |
The Singapore Debt Consolidation Calculator helps individuals evaluate the benefits of consolidating multiple debts into a single loan. This comprehensive calculator compares current debt payments with consolidation options to determine potential savings and optimal debt management strategies.
Debt Consolidation Overview
Debt consolidation involves combining multiple debts into a single loan, typically with a lower interest rate and simplified payment structure. This strategy can reduce monthly payments, total interest costs, and financial stress while improving credit management.
Types of Debt Consolidation
Personal Loans
| Bank | Interest Rate | Max Amount | Processing Fee |
|---|---|---|---|
| DBS | 6.88%-15.88% | $200,000 | 1.5% |
| OCBC | 6.98%-17.98% | $200,000 | 1%-2% |
| UOB | 7.28%-17.88% | $200,000 | 1.5% |
| Standard Chartered | 6.5%-15.9% | $200,000 | 1.99% |
Balance Transfer Options
| Provider | Promotional Rate | Promotional Period | Regular Rate |
|---|---|---|---|
| Citibank | 3.9% | 12 months | 24.9% |
| HSBC | 5.9% | 6 months | 25.9% |
| Maybank | 6.9% | 12 months | 24.9% |
| ANZ | 8.9% | 6 months | 25.9% |
Debt Consolidation Plan (DCP)
DCP Features
- Interest Rate—5%-12% per annum
- Repayment Period—3-8 years
- Maximum Amount—12 times monthly income
- Eligibility—Total unsecured debt exceeds 12 times monthly income
- Credit Bureau Reporting—Marked as "restructured" facility
DCP Eligibility Criteria
| Criteria | Requirement | Notes |
|---|---|---|
| Total Unsecured Debt | >12x monthly income | Includes credit cards, personal loans |
| Minimum Income | $30,000 annually | For Singapore citizens/PRs |
| Age | 21-65 years | At loan maturity |
| Credit History | No recent defaults | Clean credit record preferred |
Benefits of Debt Consolidation
Financial Benefits
- Lower Interest Rates—Reduce overall borrowing costs
- Single Payment—Simplify debt management
- Fixed Repayment Schedule—Predictable monthly payments
- Faster Debt Payoff—Structured repayment plan
- Improved Cash Flow—Lower monthly payment obligations
Non-Financial Benefits
- Reduced Stress—Simplified debt management
- Better Credit Score—Improved payment history
- Financial Discipline—Structured repayment approach
- Peace of Mind—Clear debt elimination timeline
Considerations and Risks
Potential Drawbacks
- Longer Repayment Period—May increase total interest paid
- Upfront Costs—Processing fees and charges
- Secured Collateral—Risk to assets if secured loan
- Temptation to Overspend—Available credit limits
- Credit Impact—Temporary effect on credit score
When NOT to Consolidate
- High Consolidation Rates—Higher than current average rate
- Small Debt Amounts—Fees outweigh benefits
- Poor Credit Score—Limited access to favorable rates
- Lack of Discipline—Risk of accumulating more debt
- Short-term Financial Issues—Temporary cash flow problems
Alternative Debt Management Strategies
Debt Avalanche Method
- Strategy—Pay minimum on all debts, extra on highest interest rate
- Benefits—Minimizes total interest paid
- Best For—Disciplined borrowers with stable income
Debt Snowball Method
- Strategy—Pay minimum on all debts, extra on smallest balance
- Benefits—Quick wins and psychological motivation
- Best For—Those needing motivation and momentum
Credit Counseling
- Service—Professional debt management advice
- Benefits—Personalized strategies and negotiation
- Cost—Usually free or low-cost services
- Providers—Credit Counselling Singapore (CCS)
How to Use the Calculator
To use the Singapore Debt Consolidation Calculator:
- Enter the consolidation loan amount
- Input the consolidation interest rate
- Set the consolidation loan term
- Include processing fees
- Add details for each existing debt
- Include additional costs like penalties
- Click "Calculate" to see consolidation benefits
The calculator will show monthly payment savings, total interest savings, and break-even analysis to help you make an informed decision.
Important Considerations
When considering debt consolidation in Singapore:
- Compare Total Costs—Include all fees and charges
- Read Terms Carefully—Understand all conditions
- Maintain Discipline—Avoid accumulating new debt
- Emergency Fund—Maintain savings for unexpected expenses
- Professional Advice—Consult financial advisors if needed
This calculator provides estimates based on the information provided. Actual loan terms, interest rates, and fees may vary based on creditworthiness, income, and lender policies. Always compare multiple options and read loan agreements carefully before proceeding with debt consolidation.
Related calculators: Personal Loan Calculator, Singapore Income Tax Calculator, Investment Calculator