Woman cutting credit card

Credit cards have become an integral part of our modern life. It provides an easy and convenient way of purchasing items, both online and offline. Despite the convenience brought by this modern marvel, they have also brought the problem of credit card debt. The Monetary Authority (MAS) reported in 2015 that as high as 75,500 people are high indebted credit card borrowers. While the record lowered in 2019, the problem of high credit card debt remains pressing. With this, we need to talk about how to manage our credit card debt.

Why you need to settle your credit card debt ASAP

Banks in Singapore can charge an excessive amount of interest rate each month. In many occasions, cardholders are unable to give their monthly payments due to the interest rate accrued by their debt. When left for a month or months, these charges will continue to increase thereby drowning the cardholder in debt. With this, you are doing yourself a favour in trying to settle your card debt as soon as you can.

When it comes to paying your debts, it is better to think long term in months ahead. Try to manage your finances in the coming months to make sure that you are stable when it comes to spending and managing your hard-earned money. Listed below are 5 ways, steps, and techniques that could help you get rid of your card debts. Following these steps can help you pay your debt.

1. Calculate how much time you need to pay your debt

The first way for you to get rid of your credit card debt in Singapore is to know how much you owe. Let us be honest. A lot of credit card users are not meticulous in looking into the details of their credit card charges. In many cases, credit card holders do not even know the total amount they are paying. As a result, they fail to make a financial plan or create a target when it comes to paying their debt.

To do this, you can request an account statement from your credit card company. They can give you the total amount you owe. From there, you can get an idea of how much you need to pay per month to cover your debt fully. You can also use this online credit card debt calculator for you to get an idea.

One trick you can do in calculating your debt is to save a certain amount of money you can spare every month. For example, if you think that you can pay $500 each month, try to compute how long it would take you to fully pay your debt based on your budget. From this, you can have an idea if you need to make your monthly budget higher or if you wish to reduce the number of months you have to pay for your credit card.

Before you choose a balance transfer in paying your card charges, it is important that you calculate the interest you save. This will give you an idea of how much money you are saving in just paying your debt. This information will provide you with an insight on how to proceed with your payment plans in the next months to come.

2. Pay your debt with the highest interest rate first

The high interest rate of your credit card charge costs you every day. As you miss that deadline of your payment schedule, the credit card company would even give you penalty charges. Hence, it is advisable that you prioritise paying your credit cards with the highest interest rate. The earlier you pay these, the more money you will save.

This technique ensures a way for you to reduce the interest rate you are paying. Surely you do not want spending money on the interest of your debt. Debt interest is something that you did not directly use or enjoy.  You do not wish to spend so much of your time and effort saving money just to pay the interest of your loans.

Do remember that credit cards typically have a high interest rate compared to a personal loan. This means that you must always prioritise paying credit cards than any of your other loan. When you leave your credit card unpaid, you will be spending so much on just paying the interest rate of your debt.

3. Find ways to raise your income

Another way to manage your credit card debt is to look for additional income to pay your increasing debt. If you think that your salary is not enough to pay your debt, it is better to look for an extra source of income solely dedicated to paying your credit card. Debts in Singapore can cause so much burden and problem. It is better for you to pay your debts as soon as you can.

After you set your monthly payment goal, you can begin to find multiple ways of earning income. You can choose to find different jobs in order to make sure that you pay our debt fast. For this specific purpose, you can find jobs in short-term projects or part-time job offerings. Make sure that you do not leave out your more stable job and career.

Aside from taking additional jobs, you might also want to aim for a job promotion. Try negotiating with your employer to have a higher position in the company which would give you an additional salary and other benefits. Another option is to ask for a salary increase. You can use this extra income to pay your debts.

4. Consider a Debt Consolidation Plan

Woman writing debt consolidation plan while using calculator on desk

If you think that your debt in Singapore is becoming impossible to manage, you might want to apply for a Debt Consolidation Plan or DCP for short. DCP collates or consolidates all your loans and debt into a single debt which means, you only have to pay one debt. This is useful for many because it means that they only have to think of one payment for the entire month instead of being charged by various credit card companies every month.

A Debt Consolidation Plan grants you a lower interest rate. Also, you are granted by your financial institution with a longer repayment term. For example,  instead of paying a debt of a personal loan for 2 years, you can negotiate to extend your repayment term into 5 years. This will provide you ample time to save for your payment while also ensuring that you are not charged with a high interest rate.

The lower interest rate offered by a Debt Consolidation Plan means that you are saving money. Your savings from this lower interest scheme can then be used to pay your credit card. With this, it seems like DCP is ensuring that you pay your debt as soon as you can.

Make sure that you are qualified for a Debt Consolidation Plan. For one, only citizens or permanent residents are granted a DCP. Aside from this requirement, there are other things to consider in applying for a Debt Consolidation Plan. To know more about this mechanism, read information about it online.

5. Negotiate with the financial institution

Lastly, to manage your credit card charges, learn how to negotiate with your banks or credit facilities. Remember that there are people behind these offices. All you have to do is to converse and transact with them so that you can get the best available. Also, you can raise your queries, concerns and problems to these offices so that they would be able to assist you.

When negotiating with your lender, you can ask for lower interest rates. Lower interest rates are beneficial to you because it saves you money. Paying a high interest rate each month can be burdensome in the long run. Hence, it is better to ask for an interest rate that is manageable for you and that fits your monthly income.

Try to find the best repayment plan. You can share your situation and condition to your lender that they will be able to find a repayment procedure that is sustainable to you on a monthly basis. In some cases, lenders even give zero balance transfer deals with their clients. Just ask your lender if they give out these perks.


Managing personal loan and credit card debt can be difficult for many of us. It is a task that requires discipline every month. The interest rate of a credit card should alarm us and inspire us to pay each month regularly. Also, it requires us months of careful planning.

But, if managing debt remains a challenge to you, you might want to consider services of a credit counselling Singapore otherwise known as CCS Singapore. Companies providing this type of service provide informed and smart choices when it comes to managing loans and debts.

One company that offers credit counseling Singapore service is Raffles Credit. We provide you with the necessary information when it comes to paying your debts and loans. You can also send us queries and clarifications, so you are able to plan your card and loan payments months ahead. We are ready to assist anyone when it comes to their issues and problems with loans and debts