Avoid falling into the debt trap

MAS' new borrowing limits from June 1 will make it harder to get unsecured credit

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Banks will not be allowed to grant any increase in credit limit or new unsecured credit facility to borrowers from June 1 if their total credit limit exceeds their annual income for three consecutive months.

This is part of an industry-wide cap that has been phased in since June 2015.

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A version of this article appeared in the print edition of The Sunday Times on May 19, 2019, with the headline Avoid falling into the debt trap. Subscribe