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Debt consolidation plan launched to help stretched borrowers

A financial institution can buy over all unsecured debt of a customer, and then work out repayment plan

Singapore

SOME 14,000 stretched borrowers here will have another way to cut their debt burden before tougher regulations kick in this year.

A new debt consolidation plan has been launched that will have eligible customers consolidate their existing unsecured credit balances across financial institutions with just one participating financial institution.

The 14 financial institutions in Singapore that offer unsecured loans will participate in this latest plan, said the Association of Banks in Singapore (ABS) on Tuesday. These include retail banks here, American Express, and Diners Club Singapore.

The new repayment scheme is meant to help borrowers reduce their unsecured debts over time, and comes...

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