Home > Debt Consolidation Loan
Managing multiple outstanding debts can be stressful and difficult to track. If you’re looking for a debt consolidation loan in Singapore, 118 Credit offers licensed moneylender debt consolidation solutions designed to help you combine eligible debts into a single, more manageable repayment plan.
Maximum loan amount:
Up to 6 times of monthly income*
Repayment period:
Up to 24 months*
Interest rate:
As low as 12% p.a.*
*Actual rate offered to you may differ. Subject to eligibility assessment.
A debt consolidation loan is a financing option that helps borrowers combine multiple eligible unsecured debts into one clearer repayment arrangement. Instead of managing several bills, due dates, and repayment amounts, borrowers can work towards one structured plan with a single lender.
Start by listing all your unsecured debts, including credit card balances, personal loan balances, licensed moneylender loans, and unsecured credit line balances. This gives you a clearer picture of your total repayment obligations before starting the debt consolidation process.
You may submit your application with 118 Credit and, where applicable, use Singpass MyInfo to support faster verification. Our loan consultant will review your application, explain the required documents, and assess whether a debt consolidation loan from a money lender is suitable for your financial situation.
If your application is approved and accepted, the loan amount may be used to settle outstanding debts that qualify for consolidation. This supports unsecured debt clearance by helping you consolidate multiple separate balances into a single, clearer repayment structure.
Instead of keeping track of several lenders and different due dates, you will make a single monthly repayment based on the approved loan terms. This makes your debt repayment plan arrangement in Singapore easier to monitor and helps you stay more disciplined with your monthly budget.
Once your eligible debts are consolidated, credit facility closure may help prevent further borrowing from the same unsecured sources. By making repayments on time, borrowers can work towards greater financial control and reduce the stress of managing multiple debt obligations.
Managing a single repayment each month helps reduce confusion and missed deadlines. Borrowers can better plan their cash flow, ensuring steady progress in clearing debts.
When compared to multiple high-interest credit cards, a consolidation loan may reduce your effective borrowing costs. This means more of your monthly payment goes towards reducing the principal.
Making consistent repayments on a structured plan can gradually rebuild your credit record. Over time, this helps restore access to financial products under better terms.
Beyond the numbers, having one clear repayment can ease the emotional strain of dealing with multiple debts. Borrowers often find it easier to stay motivated and disciplined when the process feels manageable.
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Eligibility for debt consolidation depends on your residency status, age, income, employment profile, and total unsecured debt amount. 118 Credit will assess each application carefully to determine whether unsecured debt consolidation is suitable for the borrower’s repayment ability.
| Requirement | Details |
|---|---|
| Residency Status | Singapore Citizens, Permanent Residents, foreigners, and work pass holders may be eligible, subject to lender assessment. |
| Age | 21 years and above. |
| Employment | Employed with a stable, salaried income. |
| Annual Income | Typically S$20,000 and above, subject to lender assessment. |
| Minimum Unsecured Debt | At least 2 times your monthly income in total outstanding unsecured debt. |
Your debt consolidation eligibility assessment in Singapore will depend on the documents you provide and your current repayment obligations. The income requirement DCP guide helps determine whether your income level can support a structured repayment plan. Borrowers seeking credit card debt consolidation should prepare their latest credit card statements for review. Those applying for personal loan consolidation should also prepare details of their existing personal loan balances.
The following debts may qualify for consolidation, subject to assessment:
The following debts are generally not eligible for consolidation:
These excluded debt consolidation restrictions help ensure that the loan is used only for eligible unsecured debt obligations.
Applying for a debt consolidation loan online is simple, fast, and structured to ensure borrowers fully understand their loan terms before acceptance.
Complete our online application form with your basic details. The process is quick and straightforward, allowing us to understand your loan requirements before proceeding.
Our loan consultant will contact you to explain the next steps, confirm eligibility requirements, and arrange an in-person appointment at our office.
Bring the required documents to your appointment, including:
- Copy of NRIC (front and back) OR a copy of Passport
- Valid work pass
- Latest 3 months’ payslips
- Proof of residential address
- Past 6 months’ bank statements or credit card statements
- Latest credit bureau report
- Copy of latest Income Tax Notice of Assessment (2 years for Self-employed); or
- Copy of latest 1 month computerised payslip from current employer; or
- Copy of latest 12 month CPF Contribution Statement
Any of the following documents:
- Latest Utility bills (electricity, water, refuse collection), rates or tax bills
- Latest Bank or Credit Card statements (including e-statement)
- Copy of Rental Agreements showing your address
- Letter from Employer stating current address
- Government-issued documents stating address (e.g. IRAS, CPF, ICA)
These documents help us assess your application responsibly and transparently.
During your visit, we will review your documents, clearly explain the loan terms, and discuss a repayment structure suited to your financial situation.
Once you are comfortable with the terms and the agreement is signed, loan disbursement will proceed in accordance with the agreed conditions.
Here are some of our Frequently Asked Questions that we get from most of our clients. Do take some time browsing through and we hope you may find the answers you are looking for!
A bank debt consolidation plan is usually offered by participating financial institutions and may have stricter eligibility requirements. A moneylender debt consolidation loan from 118 Credit may provide a more direct application process, faster follow-up, and a repayment plan assessed according to your current financial situation. Borrowers should compare approval requirements, repayment terms, total repayment amount, and affordability before deciding.
A debt consolidation loan may affect your credit profile depending on your repayment behaviour and the way your existing debts are settled. If you make repayments on time, a structured plan may help you manage your obligations more consistently. However, missed or late repayments can still affect your financial standing, so you should only borrow an amount that you can repay comfortably.
Yes, eligible unsecured debts such as credit card outstanding balances and personal loan balances may be reviewed together for consolidation. This can help borrowers reduce the difficulty of managing multiple repayment dates. If you need financing that is not related to debt consolidation, you may also review 118 Credit’s personal loan options separately.
Debt consolidation under this scheme is generally available only to Singapore Citizens and Permanent Residents. Foreigners and work pass holders are not eligible under this arrangement. However, foreign applicants who need a different type of loan may consider 118 Credit’s foreigner loan page for more suitable options.
No, debt consolidation is meant for eligible unsecured consumer debts and does not usually cover business loans, renovation loans, education loans, medical loans, or secured loans. If you require financing for a company-related purpose, you may refer to 118 Credit’s business loan page instead. For home improvement-related expenses, you may review the renovation loan page.
118 Credit may be suitable if you want to speak with a licensed money lender, review your repayment ability, and understand your loan terms before making a decision. Our team will explain the approved amount, repayment schedule, interest, and applicable charges clearly before you sign any agreement. If you are comparing different private debt consolidation lenders, take time to review their loan terms, fees, and repayment structures carefully. Borrowers searching for the best debt consolidation loans in Singapore should also choose a lender that is transparent, regulated, and clear about repayment obligations.
