MAS Tightened Credit
What is happening in the credit industry? Well, here is an idea. The MAS (Monetary Authority of Singapore) or Singapore’s Central Bank, announced tightening of rules for credit cards as well as unsecured credit. MAS claims that this action is a measure to improve:
Lending Practices of Financial Institutions
MAS now requires financial institution to re-examine the borrowers debt or credit limit before actually releasing or granting them. It would be practical and realistic if financial institutions asses the borrower’s capacity. The problem in the past was whenever borrowers ask for an increase in credit limit, financial institutions will give in without investigating.
Encouraging Individuals to Create Better Borrowing Decisions
Everything will begin in the individual. Individuals should be well informed when it comes to their credit decisions. Borrowing money or using credits is very serious. If individuals think about increasing their credit limit or amount of debt, individuals should think a thousand times before actually doing it.
Avoiding Further Debt Problems
The lending practices of financial institutions and the encouraging of individuals to create a better decision will surely spare the borrowers from getting more debt problems. At some point in time, you will surely borrow money but you can avoid further debt problems by learning how to manage it.
The MAS mean well. This new changes will help individuals who have mounted debt through credit cards as well as unsecured credits. Borrowing is common but if you manage your resources well, you will not experience shortage. So, every time you think about borrowing, increasing your credit limit or exhausting your credit limit, you should be aware of the repercussions. Actually, the solution is simple: do not buy something out of impulse and as much as possible, avoid using your credit cards. But if it is for the better, you should pursue it and try hard not to accumulate all your debts.