Debt Consolidation Calculator Malaysia
RM15,000 of credit card debt at 18% paid at the minimum costs RM 5,967.05 in interest. Consolidating it into a 6% flat, 5-year personal loan costs RM 325.00 a month and saves RM 1,392.05 after stamp duty. It only pays off if the loan's effective rate is lower and the cards are not used again. Enter your debts below.
Comparison
You save
Monthly payment RM 325.00 for 5 years
Your payment does not cover the monthly interest, so the debt never clears. Raise the payment or get help from AKPK.
| Now | Loan | |
|---|---|---|
| Monthly payment | RM 750.00 | RM 325.00 |
| Interest | RM 5,967.05 | RM 4,500.00 |
| Stamp duty 0.5% | – | RM 75.00 |
| Time to clear | 89 months | 60 months |
| Effective rate (EIR) | 10.85% |
Card interest is worked out monthly on the balance; banks charge daily, so real figures differ slightly.
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The cost of paying only the card minimum
| Balance | First payment | Time (18%) | Interest (18%) | Interest (15%) |
|---|---|---|---|---|
| RM 3,000.00 | RM 150.00 | 55 months | RM 1,054.96 | RM 824.54 |
| RM 5,000.00 | RM 250.00 | 70 months | RM 1,912.09 | RM 1,491.27 |
| RM 10,000.00 | RM 500.00 | 89 months | RM 4,054.96 | RM 3,157.92 |
| RM 20,000.00 | RM 1,000.00 | 109 months | RM 8,340.65 | RM 6,491.24 |
| RM 30,000.00 | RM 1,500.00 | 120 months | RM 12,626.38 | RM 9,824.61 |
How the comparison is worked out
- Now: each month, interest = balance × rate ÷ 12; your fixed payment, or the 5% / RM50 minimum, is taken off until the balance is zero.
- Loan: flat-rate instalment = (loan + loan × rate × years) ÷ months, or the reducing-balance (EIR) instalment.
- Loan cost = interest + 0.5% stamp duty.
- Saving = interest now − loan cost.
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Credit card rates and rules in Malaysia
- Finance charges: 15% a year (minimum paid on time 12 months in a row), 17% (10 of 12 months), 18% (everyone else).
- Minimum payment: 5% of the balance or RM50, whichever is higher.
- Cash advances: at most 18% a year, plus a withdrawal fee.
- Personal loans: mostly advertised at flat rates; Bank Negara bans flat-rate pricing for new personal financing from 1 January 2027.
Before you consolidate
- Compare the loan's EIR, not its flat rate, with your card rate.
- Choose the shortest term you can afford: a long term lowers the instalment but adds interest.
- Close the cards or cut their limits once paid off so the debt does not come back.
- If you are struggling to pay, AKPK runs a free Debt Management Programme (DMP).
Sources
- Bank Negara Malaysia: Credit Card policy document
- HSBC Malaysia: credit card product disclosure (tiered rates)
- AKPK: Debt Management Programme
Disclaimer: An estimate for comparison, not financial advice. The bank decides the rate, fees and approval.
Frequently asked questions
Is consolidating credit card debt worth it?
Usually, if the new loan's rate is clearly lower and you do not run the cards up again. RM15,000 of card debt at 18% paid at the minimum costs RM 5,967.05 in interest; a 6% flat, 5-year loan costs RM 4,500.00 in interest and RM 75.00 stamp duty, saving RM 1,392.05.
What is credit card interest in Malaysia?
Bank Negara sets tiered finance charges: 15% a year for cardholders who paid the minimum on time for 12 consecutive months, 17% for 10 of the last 12 months, and 18% for everyone else. Cash advances are charged at most 18% a year.
What is the credit card minimum payment?
At least 5% of the outstanding balance or RM50, whichever is higher. Paying only the minimum on RM10,000 at 18% takes 89 months (about 7.4 years) and RM 4,054.96 in interest.
Why does a flat-rate personal loan cost more than it looks?
A flat rate is charged on the original loan for the whole term even as the balance falls. A 6% flat rate over 5 years equals an effective rate (EIR) of about 10.85%, so compare the EIR with the card's 15–18%.
When is debt consolidation not worth it?
If you already pay large amounts on your cards each month and will clear them within a year or two, stretching the debt into a 5-year loan can cost more interest. It also backfires if you spend on the cards again once they are paid off.
What are the alternatives to a consolidation loan?
A credit card balance transfer at a low rate for a set period, or AKPK's free Debt Management Programme (DMP), which renegotiates repayments with your banks if you are struggling to pay.
What other costs does a consolidation loan have?
Stamp duty of 0.5% of the loan (RM75 on RM15,000), and sometimes a processing fee or insurance. The bank also checks your CCRIS record and debt service ratio (DSR) before approving.
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