SINGAPORE: A woman recently shared her concerns online about her 71-year-old retired mum, who is struggling with S$15,000 in debt.
In her post on r/askSingapore, a Reddit forum, she explained that her mum has no savings and is unable to fully repay the debt.
“Approximately S$15,000 is spread across several credit cards from four different banks,” the woman wrote. “Her monthly CPF withdrawals are being used to cover the minimum payments, but the high interest rates are making it increasingly challenging to manage the debt effectively.”
The woman also shared that she’s the only one supporting the family. Over the years, she has already helped pay off some of her mum’s previous debts and is still working on settling parts of it. She has considered options like loans and debt consolidation plans but ran into issues because her mother is too old for these programmes.
One idea the woman considered was taking out a personal loan with a lower interest rate to pay off the credit card debt. However, she’s hesitant to take on more financial pressure, given her existing responsibilities.
Running out of options, she asked fellow Reddit members, “Does anyone have any advice on how to better manage this situation, particularly with the steep interest rates on her credit cards? I’m open to any suggestions or insights that could help ease this financial strain. Thank you in advance for your help!”
“Cut up all her credit cards”
In the comments section, Singaporean Redditors empathized with her situation and offered practical tips to ease the financial burden.
One netizen said, “First step, cut up all her credit cards. The personal loan is a good option it will save you money in the long run. Even though it sucks.
“Once they are all paid off, close all her credit card accounts. She can only use a debit card, then control spending.”
Another suggested, “If she does not have real estate, try bankruptcy. Many people queue up at the Service Bureau to file bankruptcy papers. She’s not alone.”
A third Redditor recommended, “Ever consider a debt consolidation plan so that interest will stop adding and payments can be made monthly?”
Debt consolidation plans in Singapore
If you’re dealing with a lot of debt and want to make things easier, Moneysmart has listed seven debt consolidation plans that might help.
These plans, from banks like HSBC, UOB, DBS, POSB, Citi, Standard Chartered, and Bank of China, let you combine all your debts into one payment, usually with a lower interest rate.
To qualify for a debt consolidation plan, there are three main requirements. First, you need to be a Singapore citizen or permanent resident.
Second, you have to earn between S$20,000 and S$120,000 per year, and your total assets (like property or savings) should be under S$2 million.
Lastly, it is essential that your total outstanding unsecured debt is significantly high—at a minimum, equivalent to your annual income.
Read also: “$6 left in my bank account” after losing it all in stock market & crypto; bank debts over S$60K
Featured image by Depositphotos (for illustration purposes only)
