Owe credit cards lots of money? Here’s the solution:

 

If you’ve been unfortunate enough to accumulate enough debt, and they’re now all hounding you to get their money back, this latest news may just bring a bit of reprieve.

Credit Counselling Singapore will offer a centralised repayment solution to those who have shored up too much unsecured debts above their annual income.

DPM Tharman introduced the plan at the 10th anniversary of Credit Counselling Singapore yesterday (October 28th). Borrowers would now not have to deal with individual creditor banks to negotiate a reduction of debts. They can approach Credit Counselling Singapore to coordinate and work out a centralised payment plan.

Singapore-debt

The Monetary Authority of Singapore reveals that around 3% of unsecured borrowers have debts that exceed their annual income. The typical profile of people in severe debt are not surprisingly not from the lower income group. 65% of them earn incomes above the national median, more than half hold tertiary education qualifications.

This person is most likely a 40yr old man, married with children and has at least an A-level qualification. His/her average disposable income is about S$3k, but debt could be as high as S$84k. Reasons for these include overspending, retrenchment, pay cuts and gambling.

 

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Samantha Wong

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