Best Debt Consolidation Loans in Hong Kong 2020

We've compared dozens of debt consolidation loans available from every bank in Hong Kong to help borrowers find the most affordable way to manage their debt. Our list includes the cheapest balance transfer loans and highlights the best plans depending on your individual preferences.

Lowest Debt Consolidation Rates
Best Debt Consolidation Loan Promotions
Best Debt Consolidation Loans for Low-Income
Best Large Debt Consolidation Loans
Best Short-Term Debt Consolidation Loans

Compare the Best Debt Consolidation Loans in Hong Kong

Debt consolidation loans are a financial tool used to pay down existing debt on more favourable terms. Debt consolidation loans often charge a handling fee for their arrangement as well as a monthly interest rate over their duration (typically 1 to 6 years). The goal when applying for a loan is to find a low interest rate and fee while keeping your monthly repayments to a manageable level. Because banks often advertise rates "as low as X%" and that the actual rates offered may differ based on your individual financial situation, it may be beneficial to enquire with at least 2-3 banks before getting a loan.

Graph comparing the total cost of 3-year, HK$100,000 debt consolidation loans
  • Best Debt Consolidation Rates
BEA "Super-Fast" Debt Clearance Plan Best Debt Consolidation Loan Promotions Best Debt Consolidation Loans for Low-Income Best Large Debt Consolidation Loans Best Short-Term Debt Consolidation Loans

Compare the Best Debt Consolidation Loans in Hong Kong

Debt consolidation loans are a financial tool used to pay down existing debt on more favourable terms. Debt consolidation loans often charge a handling fee for their arrangement as well as a monthly interest rate over their duration (typically 1 to 6 years). The goal when applying for a loan is to find a low interest rate and fee while keeping your monthly repayments to a manageable level. Because banks often advertise rates "as low as X%" and that the actual rates offered may differ based on your individual financial situation, it may be beneficial to enquire with at least 2-3 banks before getting a loan.

Graph comparing the total cost of 3-year, HK$100,000 debt consolidation loans

Lowest Debt Consolidation Loan Rates

BEA "Super-Fast" Debt Clearance Plan

Good for consumers seeking affordable interest rates at any tenor or duration

Promotion N/A
Min. Annual Salary Not Listed
Max. Loan HK$1,200,000 (or 10x monthly salary)
Handling Fee 1.2% of loan amount
Loan Tenor 1-6 years
HK$50kHK$100kHK$300kHK$1mn
1 year0.03% (HK$780)0.03% (HK$1,561)0.03% (HK$4,682)0.03% (HK$15,600)
2 years0.03%(HK$1,561)0.03% (HK$3,122)0.03% (HK$9,367)0.03% (HK$31,225)
3 years0.03% (HK$2,343)0.03% (HK$4,686)0.03% (HK$14,057)0.03% (HK$46,857)
4 years0.03% (HK$3,125)0.03% (HK$6,250)0.03% (HK$18,751)0.03% (HK$62,502)
5 years0.03% (HK$3,908)0.03% (HK$7,816)0.03% (HK$23,448)0.03% (HK$78,160)
6 years0.03% (HK$4,692)0.03% (HK$9,383)0.03% (HK$28,149)0.03% (HK$93,832)
Promotion: Monthly rates as low as 0.03%
Monthly Flat Rate is the lowest advertised, actual rates may vary depending on applicants' financial situation. Current BEA Debt Clearance Plan interest rates are based on a promotion ending 29 September, 2020
The BEA "Super-Fast" Debt Consolidation Plan currently offers one of the lowest advertised rates on the market. Consumers can enjoy a monthly flat interest rate of 0.03% (2.91% APR) on loans with durations up to 6 years. This is the cheapest monthly flat rate on the market in nearly every borrowing situation. While BEA does charge a 1.2% handling fee per year, it's still the cheapest debt consolidation option for loans over HK$200,000 with 4-6 year tenors.

Best Debt Consolidation Loan Promotions

Borrowers looking to save money when consolidating their debt should be on the lookout for promotional rates and welcome offers. In this section, we outline the best promotions offered for balance transfer loans.

WeLend Card Debt Consolidation Loan

Good for paying down HK$50,000 to HK$100,000 in debt within 1-5 years

Promotion Up to HK$10,000 cash rebate for successful draw down
Min. Annual Salary HK$96,000
Max. Loan HK$600,000
Handling Fee 1% of amount payable
Loan Tenor 14 days-5 years
HK$50kHK$100kHK$300kHK$600,000
1 year0.108% (HK$1,158)0.108% (HK$2,317)0.100% (HK$6,656)0.095% (HK$12,945)
2 years0.143% (HK$2,779)0.143% (HK$5,559)0.136% (HK$16,146)0.131% (HK$31,534)
3 years0.156% (HK$4,473)0.156% (HK$8,945)0.149% (HK$26,014)0.143% (HK$50,624)
4 years0.163% (HK$6,228)0.163% (HK$12,457)0.155% (HK$36,079)0.166% (HK$75,710)
5 years0.167% (HK$8,028)0.167% (HK$16,056)0.167% (HK$48,169)0.155% (HK$91,351)
Promotion: Up to HK$10,000 cash rebate on successful drawdown
WeLend's Card Debt Consolidation Loan offers a highly competitive welcome gift of up to HK$10,000 in cash rebates (depending on the loan size and duration). On top of this, WeLend charges monthly flat rates as low as 0.095% (4.03% APR). There is a handling fee of 1% of the total amount payable, but when the bank's ongoing promotion is accounted for, WeLend's Card Debt Consolidation Loan is the best option on the market for HK$50,000-100,000 loans with 1 to 5 year tenors, and one of the cheapest options for consolidating HK$350,000 or less.

PrimeCredit Balance Transfer Loan

Good for borrowers seeking to consolidate HK$350,000 or more in debt

Promotion Up to HK$12,000 cash rebate and Octopus Card with HK$500 preloaded value
Min. Annual Salary Not Listed
Max. Loan HK$600,000
Handling Fee None
Loan Tenor 6 months-5 years
HK$50kHK$100kHK$300kHK$600,000
6 months0.20% (HK$603)0.20% (HK$1,206)0.20% (HK$3,618)0.20% (HK$7,236)
1 year0.20% (HK$1,213)0.20% (HK$2,427)0.20% (HK$7,280)0.20% (HK$14,559)
2 years0.20% (HK$2,456)0.20% (HK$4,912)0.20% (HK$14,736)0.20% (HK$29,472)
3 years0.20% (HK$3,729)0.20% (HK$7,458)0.20% (HK$22,373)0.20% (HK$44,747)
4 years0.20% (HK$5,033)0.20% (HK$10,065)0.20% (HK$30,196)0.20% (HK$60,392)
5 years0.20% (HK$6,368)0.20% (HK$12,736)0.20% (HK$38,209)0.20% (HK$76,417)
Promotion: Up to HK$12,000 cash rebate and HK$500 preloaded Octopus Card
Monthly Flat Rate is the lowest advertised, actual rates may vary depending on applicants' financial situation. Cash rebate (up to HK$12,000) and preloaded HK$500 Octopus card promotion end on September 30th, 2020
Currently, PrimeCredit's Balance Transfer Loan has the most generous welcome offer on the market. New customers receive a cash prize of 1.5% of the net loan amount (capped at HK$12,000) as well as an Octopus card with a HK$500 stored value for applying and drawing down on their loan within the promotion period. The PrimeCredit Balance Transfer loan has a below-average 0.20% monthly flat rate, no upfront handling fee and no stated income requirement, making it an affordable and accessible option for consolidating less than HK$350,000 or more at nearly any duration.

Best Debt Consolidation Loans for Low-Income Borrowers

Consumers can occasionally be rejected from a debt consolidation loan for not meeting specific criteria. Below, we've outlined an option to apply for custom rates based on your financial situation, as well as the best loans that you can apply for without proof of income.

Lendela Debt Consolidation Loans

Good for customised loan offers for consumers who may not qualify with a bank loan

Promotion N/A
Min. Annual Salary HK$84,000
Max. Loan HK$500,000
Handling Fee Varies by lender
Loan Tenor 3 months-6 years
Loan Details
Min. Annual IncomeHK$84,000
Max. Loan AmountHK$500,000
Lendela ApplicationFree
Handling FeeVary by lender
Loan Tenor3 months-6 years
Loan DisbursementWithin 1 day
Since Lendela aggregates and offers you the best personalised rates from lenders based on your application, monthly flat rate, APR, handling fee and other lender-specific costs and promotions vary based on each individual applicant
If you aren't able to consolidate your loan with a bank or other lenders, Lendela allows you to apply once and compare customised offers from a wide variety of licensed moneylenders in Hong Kong. As long as you are at least 18 years old, a Hong Kong resident and earn at least HK$7,000 per month, you can apply through Lendela's platform and receive your money in less than a day.

PrimeCredit Balance Transfer Loan

Good for low-incomes borrowers who want to pay off their debt over 1-3 years

Promotion Up to HK$12,000 cash rebate and Octopus Card with HK$500 preloaded value
Min. Annual Salary Not Listed
Max. Loan HK$600,000
Handling Fee None
Loan Tenor 6 months-5 years
HK$50kHK$100kHK$300kHK$600,000
6 months0.20% (HK$603)0.20% (HK$1,206)0.20% (HK$3,618)0.20% (HK$7,236)
1 year0.20% (HK$1,213)0.20% (HK$2,427)0.20% (HK$7,280)0.20% (HK$14,559)
2 years0.20% (HK$2,456)0.20% (HK$4,912)0.20% (HK$14,736)0.20% (HK$29,472)
3 years0.20% (HK$3,729)0.20% (HK$7,458)0.20% (HK$22,373)0.20% (HK$44,747)
4 years0.20% (HK$5,033)0.20% (HK$10,065)0.20% (HK$30,196)0.20% (HK$60,392)
5 years0.20% (HK$6,368)0.20% (HK$12,736)0.20% (HK$38,209)0.20% (HK$76,417)
Promotion: Up to HK$12,000 cash rebate and HK$500 preloaded Octopus Card
Monthly Flat Rate is the lowest advertised, actual rates may vary depending on applicants' financial situation. Cash rebate (up to HK$12,000) and preloaded HK$500 Octopus card promotion end on September 30th, 2020
PrimeCredit's Balance Transfer Loan is ideal for low-income borrowers looking to consolidate their debts into 1-3 years of monthly payments. Consumers can pay off the loan at monthly flat rates as low as 0.20% on loans of up to HK$600,000. What's more, borrowers can currently receive up to HK$12,000 in promotional cash rebates, plus a free Octopus card with a HK$500 preloaded value. With no listed income requirements, PrimeCredit's Balance Transfer Loan is as accessible as it is affordable.

OCBC Balance Transfer Program

Good for low-income borrowers looking to pay down debts over a 4-5 year duration

Promotion N/A
Min. Annual Salary Not Listed
Max. Loan HK$1,800,000
Handling Fee 1% of loan amount per annum
Loan Tenor 6 months -5 years
HK$50kHK$100kHK$300kHK$1mn
6 months0.08% (HK$490)0.08% (HK$981)0.08% (HK$2,943)0.08% (HK$9,810)
1 year0.08% (HK$982)0.08% (HK$1,964)0.08% (HK$5,892)0.08% (HK$19,642)
2 years0.08% (HK$1,969)0.08% (HK$3,938)0.08% (HK$11,813)0.08% (HK$39,378)
3 years0.08% (HK$2,960)0.08% (HK$5,921)0.08% (HK$17,762)0.08% (HK$59,207)
4 years0.08% (HK$3,957)0.08% (HK$7,913)0.08% (HK$23,739)0.08% (HK$79,131)
5 years0.08% (HK$4,958)0.08% (HK$9,915)0.08% (HK$29,745)0.08% (HK$99,151)
Monthly Flat Rate is the lowest advertised, actual rates may vary depending on applicants' financial situation
Not only is the OCBC Balance Transfer Program great for large, long-term loans, it's also one of the cheapest options for low-income borrowers looking to pay down consolidated debt over 4-5 years. With a monthly flat rate as low as 0.08% per month the OCBC Balance Transfer Program is among the most affordable plans available without proof of income.

Promise Easy Loan

Good for low-income borrowers seeking manageable payments over a 6-7 year duration

Promotion Up to HK$3,500 cash rebate on successful drawdown
Min. Annual Salary None
Max. Loan HK$600,000*
Handling Fee None
Loan Tenor 3 months-7 years
HK$50kHK$100kHK$300kHK$600k
6 months0.20% (HK$603)0.20% (HK$1,206)0.20% (HK$3,618)0.20% (HK$7,236)
1 year0.20% (HK$1,213)0.20% (HK$2,427)0.20% (HK$7,280)0.20% (HK$14,559)
2 years0.20% (HK$2,456)0.20% (HK$4,912)0.20% (HK$14,736)0.20% (HK$29,472)
3 years0.20% (HK$3,729)0.20% (HK$7,458)0.20% (HK$22,373)0.20% (HK$44,747)
4 years0.20% (HK$5,033)0.20% (HK$10,065)0.20% (HK$30,196)0.20% (HK$60,392)
5 years0.20% (HK$6,368)0.20% (HK$12,736)0.20% (HK$38,209)0.20% (HK$76,417)
6 years0.20% (HK$7,736)0.20% (HK$15,472)0.20% (HK$46,415)0.20% (HK$92,831)
7 years0.20% (HK$9,137)0.20% (HK$18,274)0.20% (HK$54,821)0.20% (HK$109,643)
Promotion: Up to HK$3,500 cash reward for new customers
Monthly Flat Rate is the lowest advertised, actual rates may vary depending on applicants' financial situation. Current promotional rebate of up to HK$3,500 cash reward for new customers available until August 31st, 2020. Loan limit for applying with just HKID and mobile number is HK$100,000.
Promise Easy Loan charges monthly flat rates as low as 0.20%, even for those without proof of income. In fact, Borrowers can apply with just their Hong Kong Identity Card and a mobile phone number, although those who apply with more documentation may be able to take out larger loans. Promise Easy Loan is the cheapest 6 or 7-year debt consolidation option on the market available to those without proof of income. Spreading out a consolidation loan over these longer periods of time can allow for smaller payments which are more manageable for those with low incomes.

Best Large Debt Consolidation Loans

Those looking to pay off a substantial amount of debt should take special care to find the best option that fits their needs. Below we've outlined the best loans for consolidating debts of HK$300,000 or more.

Standard Chartered Debt Consolidation Program

Good for consolidating HK$300,000 or more over 1-3 years

Promotion Up to HK$3,000 cash rebate for online application and successful drawdown
Min. Annual Salary HK$96,000
Max. Loan HK$2,000,000 (or 18x monthly salary)
Handling Fee None
Loan Tenor 1-6 years
HK$50kHK$100kHK$300kHK$1mn
1 year0.42% (HK$2,579)0.42% (HK$5,158)0.10% (HK$3,620)0.10% (HK$12,066)
2 years0.41% (HK$5,159)0.41% (HK$10,318)0.09% (HK$6,548)0.09% (HK$22,315)
3 years0.41% (HK$7,935)0.41% (HK$15,870)0.09% (HK$9,875)0.09% (HK$33,659)
4 years0.41% (HK$10,851)0.41% (HK$2,1701)0.37% (HK$58,187)0.25% (HK$127,328)
5 years0.42% (HK$14,296)0.42% (HK$28,592)0.37% (HK$74,418)0.25% (HK$161,617)
6 years0.42% (HK$17,612)0.42% (HK$35,225)0.37% (HK$91,385)0.25% (HK$196,948)
Promotion: Up to HK$3,000 cash rebate for online application and successful drawdown
Monthly Flat Rate is the lowest advertised, actual rates may vary depending on applicants' financial situation. Current promotional rebate (up to HK$3,000 for online application and successful drawdown) ends on October 4th, 2020
Standard Chartered's Debt Consolidation Program is the cheapest option to pay down large loans (HK$200,000 to HK$2,000,000) over 1 to 3 years, making it great for consumers who want to pay off significant debts on a faster schedule. Consumers pay as little as 0.092% (2.15%) per month, and enjoy 0% handling fees and promotional cash rebates of up to HK$3,000.

OCBC Balance Transfer Program

Good for paying down HK$300,000 or more over 4 to 5 years

Promotion N/A
Min. Annual Salary Not Listed
Max. Loan HK$1,800,000
Handling Fee 1% of loan amount per annum
Loan Tenor 6 months -5 years
HK$50kHK$100kHK$300kHK$1mn
6 months0.08% (HK$490)0.08% (HK$981)0.08% (HK$2,943)0.08% (HK$9,810)
1 year0.08% (HK$982)0.08% (HK$1,964)0.08% (HK$5,892)0.08% (HK$19,642)
2 years0.08% (HK$1,969)0.08% (HK$3,938)0.08% (HK$11,813)0.08% (HK$39,378)
3 years0.08% (HK$2,960)0.08% (HK$5,921)0.08% (HK$17,762)0.08% (HK$59,207)
4 years0.08% (HK$3,957)0.08% (HK$7,913)0.08% (HK$23,739)0.08% (HK$79,131)
5 years0.08% (HK$4,958)0.08% (HK$9,915)0.08% (HK$29,745)0.08% (HK$99,151)
Monthly Flat Rate is the lowest advertised, actual rates may vary depending on applicants' financial situation
Consumers looking to consolidate large amounts of debt (HK$300,000 or more) over 4 to 5 years should definitely consider OCBC's Balance Transfer Program. Consumers can pay as little as 0.08% per month (3.93% APR). Even with a 1% per annum handling fee, OCBC is still a very affordable balance transfer plan for borrowers who want to consolidate a lot of high-interest debt.

DBS Debt Consolidation Loan

Good for paying down HK$300,000 or more over a 6-year duration

Promotion N/A
Min. Annual Salary HK$100,000
Max. Loan HK$2,000,000 (or 21x monthly salary)
Handling Fee 2% of loan amount
Loan Tenor 1-6 years
HK$50kHK$100kHK$300kHK$1mn
1 year0.02% (HK$1,120)0.02% (HK$2,240)0.02% (HK$6,721)0.02% (HK$22,403)
2 years0.10% (HK$2,214)0.10% (HK$4,428)0.10% (HK$13,283)0.10%( HK$44,278)
3 years0.13% (HK$3,394)0.13% (HK$6,788)0.13% (HK$20,364)0.13% (HK$67,880)
4 years0.14% (HK$4,473)0.14% (HK$8,946)0.14% (HK$26,838)0.14% (HK$89,459)
5 years0.15% (HK$5,705)0.15% (HK$11,410)0.15% (HK$34,230)0.15% (HK$114,101)
6 years0.16% (HK$7,100)0.16% (HK$14,199)0.16% (HK$42,598)0.16% (HK$141,995)
Promotion: Up to HK$3,300 in supermarket cash coupons
Monthly Flat Rate is the lowest advertised, actual rates may vary depending on applicants' financial situation. Promotion of up to HK$3,300 in supermarket cash coupons available until August 31st, 2020
DBS's Debt Consolidation Loan is the cheapest option for large loans with 6-year tenors–the maximum duration offered by most lenders in Hong Kong. Although OCBC may be cheaper for most durations, DBS has a longer maximum tenor. Taking out a loan with a longer duration allows consumers to spread out their consolidation plan payments into smaller monthly instalments. However, consumers should be aware that a longer duration does result in owning the lender more interest, and ultimately a higher total cost.

Best Short-Term Debt Consolidation Loans

Some consumers may want to pay down their debts as quickly as possible. This practice can lead to higher monthly payment, but also lower total costs. Below we've highlighted the cheapest debt consolidation plans for durations under 1 year.

Promise Easy Loan

Good for paying off HK$100,000 or less in 6 months or less

Promotion Up to HK$3,500 cash rebate on successful drawdown
Min. Annual Salary None
Max. Loan HK$600,000*
Handling Fee None
Loan Tenor 3 months-7 years
HK$50kHK$100kHK$300kHK$600k
6 months0.20% (HK$603)0.20% (HK$1,206)0.20% (HK$3,618)0.20% (HK$7,236)
1 year0.20% (HK$1,213)0.20% (HK$2,427)0.20% (HK$7,280)0.20% (HK$14,559)
2 years0.20% (HK$2,456)0.20% (HK$4,912)0.20% (HK$14,736)0.20% (HK$29,472)
3 years0.20% (HK$3,729)0.20% (HK$7,458)0.20% (HK$22,373)0.20% (HK$44,747)
4 years0.20% (HK$5,033)0.20% (HK$10,065)0.20% (HK$30,196)0.20% (HK$60,392)
5 years0.20% (HK$6,368)0.20% (HK$12,736)0.20% (HK$38,209)0.20% (HK$76,417)
6 years0.20% (HK$7,736)0.20% (HK$15,472)0.20% (HK$46,415)0.20% (HK$92,831)
7 years0.20% (HK$9,137)0.20% (HK$18,274)0.20% (HK$54,821)0.20% (HK$109,643)
Promotion: Up to HK$3,500 cash reward for new customers
Monthly Flat Rate is the lowest advertised, actual rates may vary depending on applicants' financial situation. Current promotional rebate (up to HK$3,500 cash reward for new customers available until August 31st, 2020. Loan limit for applying with just HKID and mobile number is HK$100,000
Consumers seeking to pay down relatively small debts in a short period of time should definitely consider Promise Easy Loan. The loan has no handling fee and monthly flat rate as low as 0.20%. As such. Promise Easy Loan is one of the most affordable options for 6 month loans of under HK$100,000. Promise Easy Loan is also remarkably accessible, since borrowers can easily apply online with only an HKID and mobile phone number (although loan size is limited to just HK$100,000 for those applying with just this information).

Citi Card Debt Consolidation Loan

Good for paying down debts of HK$1mn or more in just 6 months

Promotion Up to HK$3000 cash coupon on successful drawdown
Min. Annual Salary HK$96,000
Max. Loan HK$2,000,000 (or 18x monthly salary)
Handling Fee None
Loan Tenor 1-6 years
HK$50kHK$100kHK$300kHK$1mn
6 months0.19% (HK$573)0.19% (HK$1,145)0.19% (HK$3,436)0.19% (HK$11,454)
1 year0.19% (HK$1,152)0.19% (HK$2,304)0.19% (HK$6,912)0.19% (HK$23,040)
2 years0.19% (HK$2,331)0.19% (HK$4,661)0.19% (HK$13,983)0.19% (HK$46,610)
3 years0.19% (HK$3,536)0.19% (HK$7,072)0.19% (HK$21,217)0.19% (HK$70,724)
4 years0.19% (HK$4,770)0.19% (HK$9,539)0.19% (HK$28,618)0.19% (HK$95,393)
5 years0.19% (HK$6,032)0.19% (HK$12,063)0.19% (HK$36,189)0.19% (HK$120,631)
6 years0.19% (HK$7,322)0.19% (HK$14,645)0.19% (HK$43,935)0.19% (HK$146,450)
Promotion: Up to HK$3,000 cash rebate on successful drawdown
Monthly Flat Rate is the lowest advertised, actual rates may vary depending on applicants' financial situation. Promotion of up to HK$3,000 cash rebate available until October 15th, 2020
Citibanks's Card Debt Consolidation Loan is the cheapest option for consumers seeking to pay down HK$1,000,000 in only 6 month. This makes it ideal for those with considerable income looking to get rid of a lot of high interest debt in less than a year. Opting for a shorter repayment period could mean higher monthly payments, but a lower overall cost. Citibank charges monthly flat interest rates as low as 0.19% (4.26% APR) and has no additional handling fees.

OCBC Balance Transfer Program

Good for short-term borrowers who have been rejected by other banks

Promotion N/A
Min. Annual Salary Not Listed
Max. Loan HK$1,800,000
Handling Fee 1% of loan amount per annum
Loan Tenor 6 months -5 years
HK$50kHK$100kHK$200kHK$1.2mn
6 months0.08% (HK$490)0.08% (HK$981)0.08% (HK$1,962)0.08% (HK$11,772)
1 year0.08% (HK$982)0.08% (HK$1,964)0.08% (HK$3,928)0.08% (HK$23,571)
2 years0.08% (HK$1,969)0.08% (HK$3,938)0.08% (HK$7,876)0.08% (HK$47,253)
3 years0.08% (HK$2,960)0.08% (HK$5,921)0.08% (HK$11,841)0.08% (HK$71,048)
4 years0.08% (HK$3,957)0.08% (HK$7,913)0.08% (HK$15,826)0.08% (HK$94,957)
5 years0.08% (HK$4,958)0.08% (HK$9,915)0.08% (HK$19,830)0.08% (HK$11,8981)
Monthly Flat Rate is the lowest advertised, actual rates may vary depending on applicants' financial situation
OCBC's Balance Transfer Program is consistently one of the most affordable 6-month options on the market for loans of HK$1,000,000 or less, even without promotional rebates. Potential borrowers pay a monthly flat rate as low as 0.08% per month (3.93% APR), plus a 1% per annum handling fee. While other loans may be cheaper due to their promotional rebates, OCBC is well worth considering If you are unable to qualify for another short-term loan.

How to Choose a Debt Consolidation Loan

Selecting the right debt consolidation loan for your personal needs is a balancing act between maintaining manageable monthly payments and a low monthly payment. The first step when comparing debt consolidation loans is to determine how long a period it will take to repay your debt. Debt consolidation loans typically range from 1 to 6 years, although some lenders offer durations shorter than one year and up to 7 years. Loans with shorter durations are generally cheaper overall, but since you have less time to pay off the loan, monthly payments will be higher. Longer tenors allow you to make smaller more manageable payments, but the total cost of the loan will likely be higher due to higher total interest costs. You should also consider any ongoing promotions that you may qualify for, as these can greatly offset or reduce the total cost of each debt consolidation loan.

Frequently Asked Questions

Debt consolidation loans are a way for consumers to take out a loan in order to pay off other, more expensive loans. In Hong Kong, they're often available to residents who are at least 18 years old and have worked for the same employer for at least 3 months–although there are options with less stringent work requirements. Not only is it more convenient to pay just one monthly payment, debt consolidation loans are often less expensive than credit card debt.
The answer to this depends on the interest rate that you currently pay on your debt. If you are able to consolidate your loans into one sum which you pay down over a longer period of time, it is definitely possible to end up with smaller, more manageable monthly payments. On the other hand, if your loan charges a higher interest rate than your old debt or you arrange for it to be paid off in a shorter amount of time, your monthly payments could end up being more expensive.
Debt consolidation can definitely save you money if you are able to pay off high-interest debt. For example, costly credit card debt can be transferred to a loan with a lower interest rate. Additionally, consumers can opt to consolidate debt with a long tenor into a loan with a shorter duration, potentially increasing monthly payment amounts but lowering the total cost to consumers. Ideally, consumers should avoid credit card and other high-interest debt whenever possible, although balance transfer and debt consolidation loans present an option to make your payments more manageable and/or less expensive in the long run.
In the short run, applying for a debt consolidation loan credit score due to the inherent inquiry. However, as you pay off your loans and lower your overall credit utilization (the amount of credit you are using as a percentage of the amount of credit you have available), your credit score can actually improve.

Methodology

To find the best Debt consolidation loans in Hong Kong we collected information from the terms and conditions from the from the following lenders:

Lenders Reviewed in ValueChampion's Study
BOCOMCCBDah SingHang SengOCBCStd. Chartered
BEACitiDBSHSBCPrimeCreditUA
BOCCNCBIFubonLendelaPromiseWeLend

Using information about the best advertised interest rates, handling fees and promotions, we calculated an estimated cost for each loan. Promotions are subject to change and often have their own unique requirements, so while we included them in our analysis, the costs shown above do not account for promotional rebates. We also assumed that each instalment is paid on time, avoiding any fees for late or early repayments.

Loans generally offer different rates based on their principal and duration. By analysing each loan's total cost under different conditions, we were able to find the cheapest loans for a variety of different scenarios.

Jacob Weiss

Jacob is a Junior Research Analyst at ValueChampion, focusing on credit cards and other consumer financial products. Previously, he covered hedge funds and long only products for Cambridge Associates. He holds a B.S. in Finance from the University of Maryland and has passed Level 1 of the CFA exam.