Calculating unsecured debt for a customer
Aggregate outstanding debt refers to a borrower’s total debt across all financial institutions. When determining the borrowing limits for unsecured credit, only interest-bearing unsecured debt needs to be calculated. This includes:
- Outstanding amounts rolled over on credit cards (i.e. amounts charged to cards that are not repaid in full by the due date).
- Outstanding amounts on unsecured loans that accrue interest.
- Interest imposed on any other debt, e.g. on a late payment of an otherwise interest-free instalment plan.