How to Clear $29,000 Credit Card Debt on a $4,000 Salary: A Realistic, Low-Stress Plan

Written By Nazrin Salim
Finesse Advisory Blogs On How To Clear Your Big Outstanding Credit Card Balance

Let’s say if you have 3 credit cards with outstanding amount. And you are figuring out a way on how to clear them as fast as you can without feeling overwhelming.

Example,

  1. OCBC Platinum — $8,000

  2. Standard Chartered — $6,000

  3. UOB — $15,000

Total debt: $29,000

Here’s a clear and realistic plan to help you pay off your credit cards as fast as possible, based on your balances:

Step 1: Choose Your Payoff Strategy

You have 2 main strategies. Pick the one that fits your motivation style.

Option A: Avalanche Method (Fastest, Lowest Interest Paid)

Pay the highest interest card first while paying minimum on the rest.

For most people in SG, UOB tends to have high rates (~27%). So likely:

  1. UOB ($15,000) — main focus

  2. OCBC ($8,000)

  3. SC ($6,000)

Why Avalanche?
You save the most money on interest and clear debt faster.

Option B: Snowball Method (Fastest Motivation)

Pay the smallest balance first, build momentum.

Order:

  1. SC ($6,000)

  2. OCBC ($8,000)

  3. UOB ($15,000)**

Why Snowball?
You get quick wins. Many people stick to the plan better with this.

Step 2: Stop Your Debt From Growing

Credit card interest is around 25%–29%. At $29,000 total, you’re easily paying $600–$800/month just in interest.

To break this cycle, you can:

✔ Option 1: Apply for a Balance Transfer (0% interest for 6–12 months)

You transfer your balances to one bank and stop interest temporarily.

But make sure:

  • The transfer limit is enough

  • You can commit to finishing within promo period

  • There are no hidden fees (usually 1.5%–3%)

✔ Option 2: Consider DRS if monthly repayment is too heavy

If your monthly repayment is more than 60–75% of your income, DRS may actually help you:

Under DRS:

  • Stop all 28% interest

  • One fixed monthly payment

  • 3–5 years to clear

  • No legal letters

  • You still keep your job & bank account

It can drastically reduce stress if you're drowning in bills.

If you want, I can calculate whether you qualify and estimate your monthly payment.

Step 3: How Fast Can You Clear It?

Here’s a rough idea:

If you pay $1,200/month:

– Avalanche method
– Estimated time: ~28–30 months (2.5 years)

If you pay $1,800/month:

– Estimated time: ~18–20 months

If you can only pay minimums (~$600/month):

– You will not clear it.
– Your debt will grow due to interest.

This is why stopping interest (Balance Transfer / DRS) is important.

If you want to find out more, contact us today.

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Nazrin Salim