Number of people in debt shrunk in Q2 this year

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Number of people in debt shrunk in Q2 this year

The Credit Counseling and Recovery Service said Monday that the number of people struggling with debt payments shrunk in the second quarter compared to the first three months of this year.

Between April and June of this year, 122,883 people have received counseling for debt payment, a 3.5 percent drop from the number of people in the first quarter.

Additionally, 23,374 debtors were able to ease their debt payments, which includes extending their due dates, a 4.9 percent decline from the previous quarter.

Of the 23,374 debtors, 82 percent applied for the individual workout program, which is a 6 percent drop from the previous quarter.

Those who have applied for the pre-workout, however, rose 0.6 percent from the first three months of this year to 3,991.

The individual workout is a program provided to debtors whose debt payment has been overdue for 90 days or longer while the pre-workout program is applied to those whose debts are overdue between 30 and 90 days.

The credit agency said it has provided 16.9 billion won ($14.9 million) to 5,181 debtors who have thoroughly followed their debt readjustment program.

The program has guaranteed 15.3 billion won to 5,177 individuals on sunshine loans provided to college students and young people by commercial banks.

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