Financial Capability Building Support (FCBS)
Many low-income Singaporeans face significant debt burdens. Research [1] suggests that debt causes significant psychological and cognitive impairment, limiting decision-making capacities.
Taking control of their debt situation is an important first step for these households to work towards a better future for themselves. But they need support, in both financial resources and capabilities, to tackle the heavy burden of debt.
We are partnering with Credit Counselling Singapore (CCS) to pilot their Financial Capability Building Support (FCBS) programme, which seeks to empower low-income individuals and families with large debts to improve their financial well-being through innovations in debt support.
Taking control of their debt situation is an important first step for these households to work towards a better future for themselves. But they need support, in both financial resources and capabilities, to tackle the heavy burden of debt.
We are partnering with Credit Counselling Singapore (CCS) to pilot their Financial Capability Building Support (FCBS) programme, which seeks to empower low-income individuals and families with large debts to improve their financial well-being through innovations in debt support.
The FCBS pilot with debt relief aims to support low-income families deal with significant debts, through financial literacy education, budgeting counselling, financial coaching, debt repayment plans and debt relief. Beyond addressing their immediate debt burdens, the FCBS programme aims to free up participants’ mental bandwidth to start thinking about and taking action for their longer-term future, by enabling them to develop financial knowledge and practices to take better control of their finances.
Unlike existing forms of debt relief, the FCBS pilot will go beyond institutional and secured debt. It will experiment with providing relief for debts owed to licensed moneylenders and personal creditors (such as family members and friends), to address the complex nature of debt facing low-income Singaporeans more comprehensively and complement ongoing efforts in the landscape.
By partnering CCS in this pilot, we also seek to leverage CCS’ considerable track record and capabilities in assisting distressed borrowers over the last 20 years and extend CCS’s service framework to reach the lowest-income individuals in Singapore. Ultimately, we hope to catalyse a leap in the capacity and capabilities of the social service sector to help low-income Singaporeans tackle debt – and in so doing , empower them to work towards financial stability and a better future for their families.
Unlike existing forms of debt relief, the FCBS pilot will go beyond institutional and secured debt. It will experiment with providing relief for debts owed to licensed moneylenders and personal creditors (such as family members and friends), to address the complex nature of debt facing low-income Singaporeans more comprehensively and complement ongoing efforts in the landscape.
By partnering CCS in this pilot, we also seek to leverage CCS’ considerable track record and capabilities in assisting distressed borrowers over the last 20 years and extend CCS’s service framework to reach the lowest-income individuals in Singapore. Ultimately, we hope to catalyse a leap in the capacity and capabilities of the social service sector to help low-income Singaporeans tackle debt – and in so doing , empower them to work towards financial stability and a better future for their families.
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