By MoneyBees
How long a credit card balance takes to clear on the minimum payment, the interest at your card's rate, and how much a fixed monthly payment saves, with four banks' published rules.
Each bank sets its own. DBS, OCBC and UOB ask for 3% of the balance or S$50, whichever is higher, plus anything overdue. Citi asks for 1% of the balance plus interest and fees, or S$50.
At 27.8% with a 3% or S$50 minimum, about 17 years and 3 months, with about S$11,351 in interest. A fixed S$300 a month clears it in 21 months.
DBS and UOB state 27.8% a year, OCBC 27.78% and Citi 27.9%, charged on unpaid balances. Check your own card's fees page or statement.
Yes. Paying less than the full statement balance means interest on what is left. OCBC, for example, gives the interest-free period only when no balance is carried forward.
The banks named here charge a S$100 late fee, and some add a higher interest rate. Once you are more than 60 days past due, MAS requires banks to suspend your unsecured credit.
Yes. If your interest-bearing unsecured debt across all lenders is above 12 times your monthly income for 3 months in a row, your cards and credit lines are suspended.
The minimum is a share of what you owe, so it falls as the balance falls. Most of each payment goes to interest until the S$50 floor kicks in.
Pay a fixed amount well above the minimum every month and stop adding new spending. A lower-rate loan used to clear the card can also cut the interest.
Junxiong-WFG Organisation is an authorised representative of AIA Financial Advisers Private Limited (Reg. No. 201715016G).