More people are having difficulty paying off their debts, according to the Credit Bureau Singapore (CBS) data released yesterday (5 Oct).
Although unsecured debt exposure has stabilised following the introduction of new loan curbs this year, the number of people missing two or more months of payment have jumped.
At the end of June, there were 85,352 consumers who were behind on their payments of unsecured debt by at least two months, 32 per cent higher compared to 2011. These debtors hold unsecured debt either in the form of a credit card, overdraft facility or personal loan, and represent 5% of the total population of unsecured credit customers.
The Monetary Authority of Singapore (MAS) and banks have been proactively taking steps to encourage consumers to spend within their means and urged over-extended borrowers to take up repayment plans. New measures have also been placed as a deterrent for potential borrowers. Since 1 June this year, a limit of 24 times’ monthly income was placed on unsecured loans. This will be further reduced to 18 times’ monthly income from June 2017 and 12 times from June 2019.
- More having trouble paying off unsecured debts, The Straits Times, 6 Oct 2015.
- More unsecured debtors miss payments: CBS, Today, 6 Oct 2015.