The number of borrowers drowning in red ink has fallen and is set to dip further with a new plan to help people pay off debts more easily.
It is aimed at those with unsecured debt – essentially loans with no collateral, like those racked up on credit cards or overdrafts.
The numbers affected are not a large proportion. Recent Monetary Authority of Singapore data said that about 4 per cent of borrowers with this sort of debt had loans exceeding 12 times their monthly income, down from 5 per cent in May 2015.
But the pain from this sort of red ink can be considerable and take a heavy toll on individuals and their families. Hence, the new plan unveiled by the Association of Banks in Singapore on Tuesdayis a welcome move.
A perso…
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