It works by combining multiple debts into a single, loan. Then you pay off your smaller loans with the new one. You can use the Debt consolidation for most kinds of debt including:

- Credit cards
- Outstanding medical bills
- Car repairs and more.

If you are struggling to make your monthly repayments or are paying very high interest rates on your outstanding loans, then the Debt Consolidation Plan is suitable for you to potentially secure lower interest rates. It can also serve as a means to streamline your financial affairs, providing the convenience of fewer monthly bills and alleviating concerns about multiple due dates.

However, if you need to borrow money for a purpose other than debt consolidation, then instead of this, you can consider taking out a different type of Personal loan.

Only Singaporeans and PRs are eligible for a debt consolidation plan. Additionally, you must earn at least $20,000 a year. Generally, lenders are also more likely to offer a debt consolidation plan to those who are heavily enough in debt and have debt with multiple lenders.

Only one! Providing your credit bureau report will ensure the accurate evaluation of your application and loan offer!

While Personal Loans can be used for a multitude of purposes, Debt consolidation is a type of loan mainly used to simplify multiple balances into one.

As long as you make all your payments in a timely manner, Debt consolidation may actually impact your credit score favorably in the long run!