by ValuePenguin
In 2017, the Association of Banks in Singapore introduced a new financial instrument called debt consolidation plan (DCP) to help consumers rein in their bloating debt problem. Essentially, this was meant to help individual borrowers combine their high interest loans into one that could be gradually managed down over 1 to 10 years.
But, it also had some restrictions that made it not available to everyone. For example, DCPs imposed a balance to income limit of 12x, meaning a borrower’s interest bearing unsecured loans have to greater than 12x of his monthly income. To assess whether DCP has been effective in helping consumers deal with their debt problem, we examined the Department of Statistics Singapore’s most rece…
Read the full article at: https://www.theonlinecitizen.com/2018/03/12/is-singapores-debt-consolidation-plan-working-household-debt-data-shows-mixed-signals/
