More seeking help on debt problems: CCS

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More people are seeking help from Credit Counselling Singapore (CCS) on their debt problems.

In the first six months of this year, more than 700 people sought help from the organisation.

This is an increase of 40 per cent, compared to about 500 people who sought help in the same period last year.

To help those at risk of credit problems, the organisation suggested that the Monetary Authority of Singapore (MAS) tighten the criteria for individuals in their applications for unsecured credit facilities.

There is a possibility that an individual can obtain unsecured credit facilities worth 52 months of their salaries (13 credit facilities x 4 months of an individual's salary). This could put individuals in debt if not used carefully.

To address this, CCS suggested to instead limit how much each individual can borrow in total. For example, there's a cap of 10 months of unsecured credit facilities a person can borrow. A bank can grant up to 10 months or perhaps the bank decides to grant only one month to the person.