If you’re struggling with debt, it’s important to take steps to regain control of your finances. This may include cutting back on non-essential expenses, creating a budget, and prioritising your spending habits. You should also consider the different options available to you, such as debt management, debt restructuring, and debt consolidation. These strategies can help you manage your debts more effectively and save money in the long run.

One option is the Debt Repayment Scheme (DRS Singapore – EDUdebt), which is designed to be a gentler alternative to bankruptcy. This programme is administered by the Official Assignee, and it can help individuals who are able to repay their debts over a period of time. However, it’s not automatically implemented; you must apply for the DRS during your bankruptcy application proceedings. If the OA deems you suitable, they will administer the DRS and devise a repayment plan.

Everything You Need to Know About the Debt Repayment Program in Singapore

Besides the DRS, other alternatives to bankruptcy are a Debt Consolidation Programme or an Individual Voluntary Arrangement. Both of these are debt refinancing programmes that allow you to consolidate your unsecured credit facilities with one bank, typically with more favourable terms and conditions. This can help you keep your monthly payments at a manageable level and prevent you from missing repayments, which would damage your credit score.

The key to successful debt management is to establish a realistic spending plan and make sure you can afford your monthly repayments. This will involve accounting for every penny, carefully categorizing expenses and distinguishing between needs and wants. A well-crafted spending plan will also help you identify areas where you can cut costs without sacrificing your lifestyle essentials, enabling you to redirect those funds towards debt elimination.