Can’t Pay Your Personal Loan in Singapore? Here’s What to Do

Appealing for a personal loan in Singapore is commonplace. Who wouldn’t want fast cash with little fuss? These loans come in handy, especially for unplanned expenses or settling accrued debts. But sometimes, unforeseen situations crop up, making it impossible to pay back on schedule. In this post, we’ll reveal your exit strategy when you can’t pay your personal loan in Singapore.

Reasons for Loan Default in Singapore

Defaulting on a personal loan in Singapore is not uncommon. It can happen to anyone, and the reasons are varied. Let’s explore some of the usual culprits behind this scenario:

Job Loss or Salary Reduction

Sudden unemployment or earning less than expected can take a toll on your ability to keep up with loan payments. Should this scenario arise, your best bet is to reach out to your lender pronto and lay it all out for them. Don’t hesitate to share your plight, for they may be open to adjusting payment terms, pausing payments or even devising a special repayment plan until you get back in the game.

Illness or Medical Emergency

The unexpected can strike anytime. An illness or medical emergency can wreak havoc on your finances and disrupt your ability to repay a loan. Your priority must shift to your health and recovery first. Alert your lender about your predicament and explain your circumstance. You might find a flexible payment arrangement to factor in your medical bills.

Overspending or Financial Mismanagement

In some instances, borrowers overspend or mismanage their finances, causing a challenge when repaying loans. The solution starts with an honest evaluation of your budget and expenses. Streamline your spending and develop a strategy to settle your debts.

Other Unexpected Circumstances

As if the unpredictability of life isn’t enough, it can also put a dent in your ability to settle a personal loan. Be it a divorce, natural disaster, or a death in the family, these events can thwart your repayment plans. To cope, it’s vital to notify your lender and explicate your predicament. Often, they can devise a payment arrangement that caters to your situation.

Consequences of Loan Default in Singapore

Failing to settle a personal loan in Singapore has dire consequences. Disregarding this can cost you a lot, some of which are:

Late Payment Fees and Penalties

Delaying payments can result in hefty charges from most lenders. Fail to make a payment or pay late, and you’ll likely incur late payment fees and penalties. These extra costs can escalate fast and worsen your loan repayment journey.

Damage to Credit Score

The fallout from missed loan payments can prove catastrophic for your credit score, reducing your chances of securing loans in the future. A low credit rating translates to exorbitant interest rates and associated fees. Avoid this downward spiral and make timely loan repayments.

Legal Action and Debt Collection

Failing to settle your loan may force your lender to take legal measures against you. They could seek help from a debt collection agency to retrieve their funds. The end result? More legal fees to bear and a hit to your credit score.


In dire straits, borrowers may resort to filing for bankruptcy if repayment becomes impossible. The ramifications of such an action are severe and should never be taken lightly. Only when every other alternative has been exhausted should bankruptcy even be considered.

How to Deal with Unpaid Personal Loans in Singapore?

Getting a handle on unpaid personal loans in Singapore may seem like a daunting task, but there’s hope. You can take practical steps to turn the situation around. 

#1 Discover the Root of the Problem

Identifying the origin of your financial difficulties is the first step. Do you find that you have less money coming in than before? Do you have to deal with high-interest rates or unforeseen costs? Have you started to spend more than you earn? To effectively tackle a challenge, one must delve deep and address the root cause.

It is in your best interest to get a pen and paper and start writing down the potential issue that has been hindering you from your monthly repayments. Once everything is written down, you can start crossing out other factors will are less likely to cause your trouble. By narrowing down your option, you can easily identify the underlying issue of your money problems. 

#2 Talk with your lender about your financial troubles 

Take action, don’t wait for the problem to worsen. Reach out to your lender as soon as you realize you’re struggling to make payments. Your lender wants to help, not see you fall behind. Be transparent about your situation and ask for their support. They may have solutions like restructuring your debt or creating a manageable repayment plan.

#3 Consider Consulting a Financial Expert

Consulting a financial advisor is another viable alternative. Budgeting, goal-setting, and cost-cutting are just some of the services a financial adviser may offer. Furthermore, they may explain your legal protections as a borrower and the repercussions of loan failure. You may be able to reduce your interest rate and monthly payments by consolidating your debt or refinancing it with their assistance.

#4 Consider Debt Consolidation

Juggling several loans or credit card debts is no cakewalk. However, there’s a silver lining to your debt cloud. Consolidating them into one loan with a lower interest rate could help alleviate the stress. Debt consolidation provides a more streamlined approach to managing your finances, making timely repayments easier. It’s an astute financial strategy to reclaim mastery of your fiscal future. 

#5 Consider Debt Restructuring or Settlement

In case you’re struggling to make your loan payments, you can explore the option of debt restructuring or settlement with your lender. Debt restructuring means tweaking your loan terms to make payments more feasible, while debt settlement involves reaching an agreement with your lender to pay a reduced amount. It’s something worth considering to get back on track with your loan.

#6 File for Bankruptcy as a Last Resort

Before taking the drastic step of filing for bankruptcy, exhaust all other possibilities. Bear in mind that the repercussions are severe and may impede your ability to get credit in the future. It’s best to seek counsel from a financial expert and be aware of the ramifications of declaring bankruptcy.


Handling unpaid personal loans in Singapore can be nerve-wracking, but there are effective solutions to consider. Connect with your creditor and review loan restructuring or debt merging opportunities. Find proficient financial advisors or debt management facilities to steer your finances to stability. Bear in mind, evading your debts can lead to legal repercussions and spoil your credit rating.

Accredit Moneylender: The Ultimate Solution for Clearing All Your Debts

Are you looking to settle your existing debts swiftly and efficiently? There’s a practical solution to your financial burden – apply for a debt consolidation loan. And, if you’re seeking the lowest interest rates, Accredit Moneylender is your go-to option. With us, you can combine all your minor debts into one single loan, which can help you eliminate your debts without breaking a sweat.

Take the first step towards financial freedom by applying for Accredit Moneylender’s debt consolidation loan now.

Awarded by Ministry of Law to operate a new Pilot Programme, we have been providing transparent and quality service since 2002.


Tampines Branch
(+65 6226 2662)
Yishun Branch
(+65 6219 2662)
Hougang Branch
(+65 6245 2662)
Clementi Branch
(+65 6261 2662)

Accredit @ Yishun

Google Reviews

Operating Hours:
Mon to Fri  : 10am – 8pm
Sat and Sun: 10am – 5pm

Accredit @ Tampines

Google Reviews

Operating Hours:
Mon to Fri  : 10am – 8pm
Sat and Sun: 10am – 5pm

Accredit @ Hougang

Google Reviews

Operating Hours:
Mon to Fri  : 10am – 8pm
Sat and Sun: 10am – 5pm

Accredit @ Clementi

Google Reviews

Operating Hours:
Mon to Fri  : 10am – 8pm
Sat and Sun: 10am – 5pm