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Time for highly leveraged consumers to take stock

By next June, some 40,000 S'poreans who borrowed more than a year's income through unsecured loans for 3 straight months, will have their credit lines cut

Published Mon, Dec 22, 2014 · 09:50 PM

Singapore

SINGAPORE'S highly leveraged consumers will have some soul-searching to do this Christmas, as business restructuring starts to bite.

By June next year, an estimated 40,000 Singaporeans who borrowed more than a year's income through unsecured loans for three straight months, will have their credit lines cut, until they reduce their debt. Most delinquent borrowers will also get the same treatment.

These individuals, who are effectively leveraged at 12 times their monthly pay, make up 3 per cent of all borrowers with an access to at least one credit card in Singapore - and for perspective, can fill up 70 per cent of seats at the National Stadium.

For more perspective, leveraged buyouts in pre-Lehma…

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