1 Fullerton Credit Pte Ltd is a licensed moneylender (License No. 100/2023) listed in the Registry of Moneylenders, under the Ministry of Law in Singapore.

7 Tips to Successfully Settle Credit Card Debt in Singapore

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Credit card debts are one of the most common debts that individuals acquire as they do their daily consumption and purchases. Since credit card transactions are so mundane and commonplace, especially in places like Singapore, people tend to overlook or fail to pay attention to the debts that they are acquiring with their every swipe.

Aside from the usual way of paying credit card bills, there are many different ways that you can settle credit card debt Singapore efficiently and cost-effectively. Debts are all about extents. If you are aware of the extent of your debts and their interests then you will be more able to be strategic in settling them.

Below are some tips and strategies that you can consider as you navigate the ways in which you can manage your credit card debts.

  1. Restrict Access to Credit Facilities

Most Singaporeans acquire debts because of their unrestricted access to credit facilities, specifically credit cards. A credit card application is made very convenient by banks. Requirements such as proof of employment are easy to generate.

Banks nowadays profit from the credit card they issue to clients. Credit cardholders incur monthly interest rate for any unpaid credit balance. They usually prioritize paying only the minimum amount without giving much thought on how minimum payment leads to credit entrapment. The remaining balance continues to produce interest until the time they have finally been settled. It takes months, even years before the balance is paid.

The more card you own means the more loan you can borrow and spend. And the more you spend, the more interest rate will accrue from each of your card. You will have a harder time paying off all your credit card debt.

You would even be confused about which credit card you’ll prioritize. Hence, you’re saving yourself from the burden of having to pay too many credit card debt by simply limiting the credit cards you own.

Don’t be easily enticed to apply for another credit card when you already own one. Watch out when your credit limit is already significantly more than your monthly income. You will probably end up not being able to pay any.

  1. Rank Your Debts According to Interest Rate

In order to lessen and reduce the payment of interest rate, it is integral that you are aware of the varying interest rates of your debts. After determining the different interest rates, it would be helpful if you can rank them from the highest interest rates to the lower. Once you are equipped with this knowledge, then you can make informed choices on the prioritization of your payments.

  1. Determine How Much You Can Pay Each Month

It is important that you know how much spare money you have each month. This spare money shall be used to pay off credit card debt.

To do this, list down all your monthly expenses as well as your monthly income. Subtract the former from the latter. The resulting amount is the amount you can pay each month so make sure that you spend that money strictly for debt repayment.

  1. Lower Your Interest Rates

Having more than one credit card entails paying more interest rates. You should be reducing the interest rate that you pay. You can do this by using a Balance Transfer.

Balance transfer offers low to zero interest rate but only for a limited period of 6 to 12 months. What you basically do is get a new credit card from another bank. It will be used to pay off your existing debt to all your other credit cards.

The good thing about this is that you will be freed from paying interests accruing from your old credit cards. You won’t even have to pay any interest anymore for as long as you pay the principal debt on your new credit card.

Take note that although balance transfer can be used to lower your interest rate, you can still be charged high interest without a sound repayment strategy. It’s your goal to pay your loan before the period for low to zero interest ends. Commit to the plan.

  1. Start Paying Down the Target Debt

Pay down the target debt by prioritizing the credit card debt with the highest interest rate. Doing so means reducing the interest outgo. When the person settles the credit card with the highest interest rate, he saves himself some cash which could have been interest outgo.

This particular credit card charges high interest relative to the principal debt. If you don’t pay that, the principal debt will balloon within a short period of time.

Having credit card debt, you would want to lessen the principal in order to reduce the interest that accrues. Hence, you need to pay the principal balance, too. In this way, you would only be charged interest for a small amount.

  1. Look Into Debt Consolidation Plans

Another way to settle credit card debt is through a debt consolidation plan. It’s a debt refinancing scheme that gives you the option to have all your credit card debt across different banks be consolidated with just one bank. Debt consolidation plan is limited for unsecured credit facilities like personal loans and credit cards.

The said bank or financial intermediary pays off your outstanding debt. In exchange, you agree to pay a particular installment amount each month. Moreover, the interest rate for this debt management tool is lower compared to other loan options.

Debt consolidation plan helps you settle your debt because there is certainty in the amount you have to produce every month. Nothing more, nothing less. The repayment period could be as long as 10 years. You will have enough time to stretch your budget until that period without sacrificing your immediate and current needs.

  1. Keep Going and Celebrate Your Progress

Taking all these tips in mind and actually doing them consistently and persistently would make you debt free sooner than later.

When everything else fails, you may want to consider the debt management programme (DMP) offered by the Credit Counselling Singapore (CCS Singapore). The Credit Counseling Singapore specifically assists those in serious financial distress. They are those that face legal charges or those that are unable to pay for living expenses after having paid the minimum amount of their debts.


You can consolidate debts by applying for an unsecured personal loan. Aside from lower interest, personal loan requires fixed monthly payment for a specified period. Hence, it would be easier for you to manage your money by saving a particular amount each month in order to make payment.

If you receive a lower interest rate than the one indicated in the terms of your card, then you are encouraged to consolidate your credit card debt through a personal loan. You can apply for the best personal loans in Singapore either from banks or from licensed moneylenders.

A personal loan that will be used to pay debts in Singapore is more easily approved when acquired from money lending firms. Within days, this kind of loan can be approved. This is a common feature of competitive lending firms like 1 Fullerton Credit. 1 Fullerton Credit is a low-cost and flexible loan provider.

Despite being relatively lax in terms of loan approval, 1 Fullerton Credit and similar lending firms are still responsible and vigilant in ensuring that loans are payable within the specified number of months indicated in the contract. In ensuring that personal loans are paid for in a definite number of months, then the interest rate is regulated and maintained at a reasonable level.

As a client, you should also be responsible for setting aside a portion of your income every month for loan payment. Otherwise, interest rates would accrue in the subsequent months and it would present harder financial problems than the ones you originally intended to solve.

There are a lot of ways to work credit card debts and payments in an efficient manner. Singapore has numerous businesses that are dedicated to services that aim to assist people from different fields manage their finances.

It is important that people are aware and well-informed of different options available at their disposal that would minimize their spending and maximize efficiency and savings.

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