The Credit Counseling and Recovery Service (CRC) is pushing to raise the recognized living cost limit for vulnerable borrowers undergoing debt restructuring from the current 60% of median income to 70%. The decision reflects the view that under the current standard, vulnerable groups struggle to secure repayment stability as overall living costs, including housing and food and beverage prices, have risen recently.
According to the financial industry on the 3rd, the CRC has been running a pilot program since last month for new debt restructuring applicants, raising the maximum recognized range of living costs from 60% of median income to 70%. For debtors undergoing debt restructuring, the monthly repayment amount is set based on the…