Last month, Deputy Prime Minister Tharman Shanmugaratnam announced that Credit Counselling Singapore is expanding its services to provide a “centralized repayment solution” for individuals with substantial unsecured debts exceeding their income. This means you won’t have to negotiate with multiple creditors; Credit Counselling Singapore will handle the debt consolidation for you. If you need this service to become debt-free, you’re in financial trouble, similar to needing life support.

This new solution appears to be an extension of the Debt Management Programme (DMP) run by CCS. Joining DMP affects your credit status but, honestly, if you’re considering it, you’re probably not making timely payments anyway. It might actually be a good thing to be “blacklisted” at this point since you don’t need more debt.

If you’re not desperate but see potential risk, take charge of your debt now. Follow these 5 simple steps to regain control and become debt-free.

1. Acknowledge the Problem

Start by recognizing that you have a financial challenge. You don’t need to attend a support group meeting, but taking ownership of the issue is crucial. Avoid pursuing ineffective methods for dealing with debt and confront the situation head-on.

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2. Set Clear Goals

Rather than fixating on your overall debt, break it down into manageable portions. Prioritize paying off these smaller debts one by one on your path to debt freedom. If you’re unsure where to start, we offer three practical tips to guide you.

3. Open Communication with Creditors

Ignore your fight or flight instincts – unless you owe money to loan sharks, in which case the latter option is definitely preferable. The biggest mistake debtors make is to avoid creditors and collection agencies. Believe it or not, they’re really more interested in getting your money than in ruining your life forever. Letting your creditors know that you have every intention to make payment will go a long way towards getting their help to repay your debt.

If you have a lot of credit card debt, think about getting a debt consolidation loan. It combines all your card debts into one loan with a lower interest rate.

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4. Prioritize High-Interest Debts

Focus on paying off debts with the highest interest rates first, particularly credit card balances. While it might seem logical to tackle the smallest debts first, prioritizing high-interest debts will ultimately save you more money. Here are some more ideas about choosing which card to pay off first

Avoid inadvertently creating more financial problems in your eagerness to become debt-free; we provide four crucial tips for paying off credit card debt.

5. Attain and Sustain Debt Freedom

Achieving and maintaining debt freedom requires consistent effort and determination, much like maintaining a diet, exercise routine, or learning a new skill. Adopt the mindset that while the process is straightforward, it’s not necessarily easy, and any slack can set you back. We share five effective habits to cultivate for your journey towards financial independence.


Becoming debt-free is an attainable goal, but it requires commitment and determination. Don’t wait for external solutions; take charge of your financial future now.  By following these five simple yet challenging steps, you can set yourself on the path to financial freedom.

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What tips and tricks do you have to become debt free? Share your thoughts with us!

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