Debt Management Strategies for Singapore Borrowers
Practical strategies to manage multiple debts, reduce interest costs, and stay on track to becoming debt-free.
Debt avalanche vs debt snowball
Debt avalanche: Pay minimums on all debts, put extra money towards the highest-interest debt first. Mathematically optimal.
Debt snowball: Pay off the smallest balance first for psychological wins. Helps maintain motivation.
Neither is universally better — choose the one you’ll actually stick to.
Debt Consolidation Plan (DCP)
If you have multiple unsecured debts totalling more than 12 times your monthly income, a DCP from a participating bank allows you to consolidate into a single lower-rate loan with a structured repayment schedule.
When to seek help
If your total debt repayments exceed 50% of take-home pay, contact the Credit Counselling Singapore (CCS) at 1800-CALL-CCS for free guidance.