Credit Card Debt in Singapore – Best Personal Loans for Repaying Your Bills | MoneySmart.sg

As mentioned, a personal loan is oftentimes the most flexible way to repay your credit card debt. The procedure is also relatively simple. You just need to apply for a personal loan, and use the disbursed cash to pay off your credit card bills immediately. Then, commit to repaying the personal loan according to the fixed repayment plan you picked… while making sure you don’t incur any more credit card debt.

That said, it’s not for everyone. Here are some advantages and disadvantages of using a personal loan to clear your credit card debt.

Pros:

Easy to compare and apply for a personal loan through MoneySmart

You’re able to choose the interest rate and loan package for your needs

You can borrow a small sum (starting from S$1,000)

You can choose repayment periods ranging from 1 year to 7 years

Repayment plan is fixed and does not fluctuate monthly, so it’s easy to budget for

Has lower interest rate compared to credit card interest rates

Cons:

If you have a bad credit history or low income, it may be hard to get a personal loan (or low interest rate)

You may be tempted to borrow more than you need to pay off your credit card debt

It requires lots of discipline to use the borrowed cash to repay your bills

Personal loans are lower interest than credit cards, but there are also fees to look out for

Personal loans are a financial commitment that will span years

If you have underlying debt issues, they will not be addressed

Now that you’re aware of these important aspects of using a personal loan to clear your credit card debt, here are our top picks for low interest personal loans.