The latest initiative by the authorities to help borrowers from falling into deep, unsecured debt is a reminder for all to exercise financial prudence. It is also timely, what with the year-end festivities and Chinese New Year round the corner.
The Sunday Times highlights what you need to know about the new credit limit measure.
WHAT IS THE CREDIT LIMIT MANAGEMENT MEASURE?
Come Jan 1, the so-called Credit Limit Management Measure kicks in. It is aimed at borrowers with unsecured debt, such as personal loans or credit card debt, that exceeds six times their monthly income.
Banks will not be allowed to grant any increase in credit limits or any new unsecured credit facilities to such a person if they cause his total credit limi…
Read the full article at: http://www.straitstimes.com/business/pre-empting-the-pitfalls-of-debt
