Credit Debt Restructuring Announced

Borrowers Have Three Months to Apply for New Terms

Financial institutions are offering a new window for customers to restructure credit card and consumer loan debts. This initiative aims to provide a more manageable repayment process with extended terms.

Extended Maturity Periods

The banking regulatory authority, BRSA, has announced that individual credit card and consumer loan debt balances can now be reorganized over a 48-month period. This adjustment shortens the configuration of maturity and application timelines, anticipating a less burdensome, expedited process.

Application Window Opens

Customers wishing to take advantage of this debt restructuring must submit their applications within the next three months. The BRSA highlighted this period as crucial for individuals to engage with the new terms.

This move comes as the total credit card debt in the United States reached approximately $1.3 trillion in the first quarter of 2024, according to data from the Federal Reserve Bank of New York. The new restructuring option may offer relief to many consumers grappling with mounting balances.