In Singapore, credit cards have become more than just a convenience—they’re practically a lifestyle. Whether it’s earning air miles on your daily kopi run, enjoying cashback at your favourite restaurant, or taking advantage of instalment plans for that sleek new gadget, credit cards are deeply woven into how we spend. But as many have discovered the hard way, what begins as smart spending can quickly spiral into a web of high-interest debt.
According to the Monetary Authority of Singapore (MAS), the total credit card rollover balance—that’s unpaid debt accruing interest—stood at over S$4.8 billion as of mid-2025. With interest rates often exceeding 25% per annum, it’s no surprise that many Singaporeans and PRs find themselves trapped in a cycle that’s tough to break.
But here’s the good news: getting out of credit card debt isn’t impossible. With the right approach, discipline, and tools, you can move from red to black and take back control of your financial life. Here are five effective, Singapore-specific strategies to tackle your credit card debt, ranked from self-managed methods to more structured, institutional solutions.
- The DIY Approach: Avalanche and Snowball Methods
If you’re someone who likes to take matters into your own hands and has the discipline to stick to a budget, the DIY method might be your best starting point. Two popular tactics under this umbrella are the debt avalanche and debt snowball methods.
Debt Avalanche: Save on Interest
With the avalanche method, you focus on paying off the credit card with the highest interest rate first, while continuing to make minimum payments on the rest. Once that’s done, you move on to the next-highest interest rate, and so on.
- Pros: You’ll pay less in interest over time.
- Cons: May take longer to see progress, which can be discouraging.
Debt Snowball: Build Momentum
The snowball method, on the other hand, has you pay off the smallest balance first regardless of interest rate. Once that’s cleared, you roll the amount into the next smallest debt, and continue building up payments like a snowball rolling downhill.
- Pros: Provides psychological wins early on to keep you motivated.
- Cons: May cost more in interest over the long term.
Singapore Tip:
Use budgeting apps like Seedly, YNAB, or MoneyOwl to keep track of your repayments and monitor spending. Remember, CPF cannot be used to pay off unsecured debts like credit cards—so it’s crucial to manage your cash flow wisely.
- The Smart Swap: Balance Transfer Credit Cards
If you’ve got a decent credit score and want to stop the bleeding from high interest, consider a balance transfer credit card. This allows you to move your outstanding credit card balances to a new card that offers 0% interest for a limited period, often 3 to 12 months.
How It Works:
You apply for a balance transfer promotion—offered by most major banks in Singapore such as DBS, OCBC, UOB, and Citibank—and transfer your debt over. During the promotional period, you won’t incur interest on the transferred amount, provided you make the monthly payments.
- Pros: Huge savings on interest during the 0% period.
- Cons: A one-time processing fee (typically 1-5%) may apply, and once the promo ends, the standard high interest kicks in again.
Singapore Tip:
Always pay off the full transferred amount before the promo period ends. Set up GIRO payments or reminders to avoid penalties. Check platforms like MoneySmart or SingSaver to compare the latest offers.
- The Single Payment Solution: Personal Loans
Another effective option is to take out a personal loan to pay off your credit card debt. Personal loans from banks usually come with lower interest rates (around 3-8% p.a.) compared to credit cards.
How It Works:
You apply for a loan equivalent to your total credit card debt and use it to settle all your cards. Instead of juggling multiple payments with sky-high interest, you make one fixed monthly payment over a chosen tenure, typically between 1 and 5 years.
- Pros: Lower interest, predictable payments, and a clear repayment timeline.
- Cons: You’ll need to meet income and credit score requirements, and taking on a new loan can impact your Total Debt Servicing Ratio (TDSR) if you’re planning to buy property.
Singapore Tip:
Local banks like POSB, HSBC, and Standard Chartered often run personal loan promotions. Use the Loan Comparison Tool on sites like GoBear to evaluate interest rates, fees, and eligibility before committing.
- The Structured Approach: Debt Consolidation Plans (DCP)
If your total unsecured debts—credit cards, personal lines of credit, etc.—exceed 12 times your monthly income, you may qualify for a Debt Consolidation Plan (DCP). This is a formal scheme regulated by MAS and offered by participating financial institutions.
How It Works:
A DCP combines all your unsecured debts into a single loan with a longer repayment period and a lower interest rate. You’ll only need to manage one payment each month. A DCP also usually comes with a credit card with a capped limit (usually one month’s income) to discourage further borrowing.
- Pros: Makes debt more manageable, lowers monthly obligations, and stops further borrowing.
- Cons: You must commit to the entire repayment schedule, and your credit report will show you’re on a DCP, potentially affecting future credit applications.
Singapore Tip:
To qualify, you must be a Singaporean or PR, earn at least S$30,000 per year, and have a good credit history. DCP providers include DBS, Maybank, HSBC, and more. Visit the ABS (Association of Banks in Singapore) website for a full list of participating institutions.
- Seeking Professional Guidance: Credit Counselling Singapore (CCS)
When things feel out of hand and you’re drowning in debt, it’s time to speak to the professionals. Credit Counselling Singapore (CCS) is a non-profit organisation dedicated to helping Singaporeans and PRs manage their unsecured debt and avoid bankruptcy.
How It Works:
CCS provides free counselling sessions to assess your financial situation. If needed, they can set up a Debt Management Programme (DMP) where your debts are restructured and you make fixed monthly payments to your creditors through CCS.
- Pros: A lifeline for those in deep debt, with supportive financial counselling and a path to recovery.
- Cons: Like DCPs, participation in a DMP is reflected in your credit history, and you must be committed for the long haul.
Singapore Tip:
CCS has helped thousands of Singaporeans get back on their feet. If you’re facing legal letters, constant calls from banks, or are simply overwhelmed, reach out at www.ccs.org.sg or call their hotline at 6225 5227. They also offer webinars and workshops on financial literacy and budgeting.
Conclusion: From Chaos to Control
Credit card debt can feel like quicksand—silent at first, but pulling you down as time goes on. In a city like Singapore, where the cost of living is high and temptations abound, it’s easy to fall into the trap. But as you’ve seen, there’s no one-size-fits-all approach to escaping debt. Whether you prefer the independence of DIY strategies or need structured, professional help, what matters most is taking the first step.
Assess your situation honestly. Map out your debts. Ask yourself: Am I in control, or am I merely surviving?
There’s no shame in having debt—but there is power in facing it head-on. With clarity, courage, and the right strategy, you can move from red to black and begin building a more secure, stress-free financial future.
