DMP, DCP & DRS: Differences Between These Debt Repayment Options In Singapore

DMP, DCP and DRS are acronyms for debt solutions that sound like a bunch of jargon for the layperson. Find out what they are and their differences here.
Differences Between These Debt Repayment Options In Singapore

DMP, DCP and DRS are acronyms that sound like a bunch of jargon for the layperson. However, it is good for you to know and understand what they are if you are currently in debt, or just want to find out more about debt repayment options available in Singapore.

Keep reading for more information, including what they are, eligibility and differences so you get a better idea of which is more suitable for you and your situation.

DMP: Debt Management Plan 

A Debt Management Plan is designed to help debtors repay unsecured debts to their creditors in full through a reasonable repayment plan. It is a formal consumer debt restructuring agreement offered by Credit Counselling Singapore (CCS) in collaboration with major banks and credit card issuing companies in Singapore.

A Credit Counsellor who is assigned to your case will come up with a DMP Proposal and Repayment Schedule that allows you to make affordable monthly payments at a reduced interest rate. By the end of the Debt Management Plan, you should have cleared all your unsecured debts and can even attend a DMP Graduates Workshop on rebuilding creditworthiness.

DCP: Debt Consolidation Plan

Unlike a Debt Management Plan in which a Credit Counsellor assesses the debtor’s situation and liaises with creditors, a Debt Consolidation Plan is usually initiated by the debtors themselves and up to the participating financial institutions to make an offer.

It is a debt refinancing program that allows debtors to consolidate all their unsecured debts across financial institutions with one participating financial institution. A Debt Consolidation Plan is often preferred by many debtors as it essentially means that they will only have to deal with one financial institution and its interest rate, as compared to a few different institutions with different interest rates.

DRS: Debt Repayment Scheme

While a Debt Management Plan and a Debt Consolidation Plan are both viable options for debtors, the Debt Repayment Scheme is often seen as a final lifeline to avoid bankruptcy.

In a Debt Repayment Scheme, your debts will be consolidated and you will be offered a monthly installment plan of up to 5 years. At the same time, your creditors will not be able to take legal action against you. The repayment plan must safeguard the creditors’ interests to help both you and your creditors achieve a win-win outcome.

Learn more: 5 Important Things You Need to Know About Debt Repayment Scheme In Singapore

The Differences between DMP, DCP, and DRS

Now that you have a clearer idea of what these three debt solutions are about, the next step is to understand their differences so you can weigh your options. Here is what you need to know in a nutshell:

Debt Management Plan

How it works:

  • A Credit Counsellor prepares a DMP Proposal and Repayment Schedule
  • The approval of DMPs is at the sole discretion of your creditors
  • Once approved, you can start making monthly installments that are within your payment capacity
  • Attend an Onboarding Session on what to expect, how to set up payments and guidance on money management
  • The Debt Servicing and Support team provides support, guidance, and talks on improving your financial knowledge and maintaining mental and emotional wellbeing
  • Upon completion, attend a DMP Graduates Workshop on rebuilding creditworthiness

Interest rate:

  • Lower than existing credit facilities’ interest rates

Interest Rates for Debt Management Plan


  • Incurred unsecured debts of $10,000 or more
  • Unsecured debts owed to two or more creditors
  • Assessed to have the capacity to repay all unsecured debts in full within a reasonable timeframe

Debt Consolidation Plan

How it works:

  • Approach any of the 14 participating Financial Institutions (FIs) in Singapore
  • It is the sole discretion of the (FIs) to make an offer
  • Upon approval, your chosen FI will proceed to pay your outstanding amounts with existing FIs and notify them of account suspension
  • You can then start making monthly repayments to your chosen FI
  • You may only refinance your debt consolidation plan 3 months after approval of the current plan, subject to any penalty fee imposed by your FI for early termination

Interest rate:

  • Lower than existing credit facilities’ interest rates
  • Interest rates vary depending on which Bank you sign with:
    • HSBC 3.4%
    • Standard Chartered 3.48%
    • DBS 3.58%
    • POSB 3.58%
    • Citi Bank 3.99%
    • UOB Bank 4.5%
    • Bank Of China 6%

*2022 Interest Rates for Debt Consolidation Plan


  • A Singapore Citizen or Permanent Resident
  • Earning between S$20,000 and below S$120,000 per annum with Net Personal Assets of less than $2 million
  • Have unsecured debts with FIs in Singapore that exceed 12 times your monthly income

Debt Repayment Scheme

How it works:

  • You can only be put under a Debt Repayment Scheme when a bankruptcy application is made against you in the High Court, by yourself or your creditor
  • If you are found to be suitable for the scheme, a DRS administrator will come up with a Debt Repayment Plan for you
  • During a meeting with your creditors, your monthly installment and the terms and conditions will be discussed
  • Once approved, you will have to pay $300 as your first annual fee + your approved monthly payment

Interest rate:

  • Debts stop accruing interest


  • Total liabilities do not exceed $150,000
  • Employed and earning a regular income
  • Had not been bankrupt or been on the Debt Repayment Scheme in the last 5 years
  • Had not been subject to a court-based arrangement in the last 5 years
  • Not a sole proprietor or partner in any firm

Debt Counselling in Singapore

Unsure which debt solution would benefit you the most? Speak to a debt consultant at Debt Aid!

Our no-obligation consultation ensures everyone who comes to us gets a fair opportunity to consider their options and decide on the most appropriate solution.

Book an appointment here!

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We provide a 1-1 Personalised Private Consultation where we explore different types of debt settlement options for individuals. We assist to consolidate all unsecured owing and provide a feasible repayment plan over a fixed period of time, depending on individuals’ income, expenditure and debt size.

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