Singapore’s financial regulator, the Monetary Authority of Singapore, is suggesting a new way to prevent people from slipping into debt. The suggestion, don’t give some people access to credit.
According to the suggestions, lenders would not be allowed to make unsolicited offers to increase credit limits and consumers that are 60 or more days delinquent will not be allowed to use their credit cards or open lines of credit, any further.
Most dramatically:
“Individuals whose interest bearing balances with a financial institution are more than two months of their income for six consecutive months or more will not be allowed to charge further amounts to their unsecured credit cards, charge cards and unsecured credit facilities from that financial institution, or obtain new cards and unsecured credit facilities from any financial institution. This will discourage individuals from prolonged reliance on credit cards and unsecured credit to finance their spending.” – Source
What do you think, should we adopt such restrictions in the United States and block consumer access to credit?
