The Central Bank of Brunei Darussalam released an education note for National Financial Literacy Day (NFLD) 2025 setting out practical guidance for households on managing loans and financing responsibly, with a focus on understanding debt burdens, repayment strategies and credit health. The note highlights the Total Debt Service Ratio (TDSR) as the share of monthly income used to repay loans or financing, and states that while banks may allow borrowing up to 60% of monthly income, borrowers may wish to keep it under 35% to retain room for day-to-day expenses. It encourages consumers to list all monthly financial commitments (amounts, interest rates and due dates), prioritise repayment either by tackling high-interest debt first (avalanche method) or paying off the smallest balances first (snowball method), and check credit reports regularly to identify errors and reduce identity-theft risks. It also signposts support via banks or qualified, certified financial planners from the Financial Planning Association of Brunei Darussalam. NFLD is described as a financial literacy event led by Brunei Darussalam Central Bank (BDCB) and supported by the National Financial Literacy Council.
Central Bank of Brunei Darussalam 2025-08-13
Central Bank of Brunei Darussalam publishes National Financial Literacy Day 2025 guidance on responsible debt management
The Central Bank of Brunei Darussalam issued an education note for National Financial Literacy Day 2025, offering guidance on responsible loan and financing management. It emphasizes understanding debt burdens, repayment strategies, and credit health, recommending a Total Debt Service Ratio under 35% of monthly income. The note also advises on prioritizing debt repayment methods and checking credit reports to mitigate identity-theft risks.