The key to effectively manage your debt is to clear your outstanding balance with a solid and affordable repayment plan.

Here are some basic pointers to pick yourself up and be debt-free once more.

Consolidate into a single, monthly lower payment

Things get easier when you are organised and have a clear system to pay your outstanding amount. You probably have a good idea of how much you need to pay to the different banks, know how much you should set aside to clear the payment and are already tracking your payments.

There is an even easier and more effective way to clear your debts – just consolidate everything into one plan. Instead of managing multiple payments per month, you only need to focus on one easy-to-manage payment plan.

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The POSB Debt Consolidation Plan, for example, does just that. As the name implies, the debt refinancing program consolidates your unsecured credit facilities (which includes credit cards and selected unsecured loans) for easy monitoring. It also provides you with fuss-free automated monthly repayment through your designated POSB/DBS account.

Spread out the payment

Debt consolidation plans are created specifically for those who are looking at an outstanding balance that’s more than 12 times their monthly salary. Rather than worry about paying the lump sum quickly, you can spread this out and give yourself some breathing room.

The POSB Debt Consolidation Plan makes everything more manageable with a fixed monthly payment. What’s more, with a flexible loan tenure of up to 8 years, you can clear your outstanding balance through careful planning and have peace of mind while you follow through with a manageable monthly payment.

Aim for lower interest rates

The beauty of a debt consolidation plan lies in its ability to reduce the interest you’re paying. For example, if you need to pay a total of $60,000 to four different banks, with a 25.9% per annum interest rate, that’s up to $15,540 of interest you’re paying per year.

Going with POSB Debt Consolidation Plan, which factors an interest rate from as low as 4.58% per annum (8.22% per annum effective interest rate, inclusive of processing fee), would mean a payable interest of $2,748 per year.

You are looking at saving $12,792 per year on your interest. Beyond a significant reduction in your interest payment, you are also managing just one rather than multiple payments, which will save yourself from a massive headache when you monitor your balance.

Maintain your spending

Remember, it’s not about how much money you have or owe. It’s about managing it properly to have good financial health. On top of that, you should maintain a healthy spending habit to pay for the essential things in your life.

POSB Debt Consolidation Plan comes bundled with a Visa Credit Card with a credit limit of up to 1x your monthly salary for your daily expenses. Here’s the good news – you don’t have to worry about any annual fee for this card.

Don’t pay pay, get your life back on track

With the abovementioned tips and refinancing programs such as the POSB Debt Consolidation Plan, it’s just a matter of time before your life is back on track.

POSB Debt Consolidation Plan has an ongoing promotion that offers cashback of up to $1,200. Every dollar counts to reduce your loan and see your outstanding balance cleared off quickly.

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Don’t just pay and pay. With the POSB Debt Consolidation plan, you will no longer see your debts snowballing anymore.


Anonymous is a writer who contributes to GoBear articles related to personal finance and lifestyle.