Younger Singaporeans, higher debt
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May 20, 2010 - The Straits Times
Younger S'poreans, higher debt
By Harsha Jethnani
YOUNGER Singaporeans appear to struggle with managing credit and debt, payment data from last year suggests.
In figures collated by DP Credit Bureau (DPCB), Singaporeans between the age of 21 to 29 years old saw defaults increase from 5.07 per cent in January last year to 7.16 per cent in December. The rate of bad debts in the same group is at 130 per cent, higher than the average rate across all age groups which is 3.11 per cent, a statement from DPCB said yesterday.
Credit card defaults were the most common for all groups with the 21 to 29 year olds leading the pack with a 7.54 per cent default rate. Young married couples in the same segment had even higher rates of defaults on debts than single counterparts, a characteristic unique to only this age group. Across all other age groups, couples had lower rates of default than singles of the same age.
'Unlike their older counterparts, many younger people do not have the financial strength and asset depth to deal with changes in their circumstances,' said DPCB's managing director, Ms Chen Yew Nah.
And since young married couples are more prone to defaulting on payments, 'they need to reassess their spending plans and set themselves more realistic budgets that they can stick to', Ms Chen said.
The 50 to 59 year olds were found to be the biggest credit spenders, mainly by credit card spending, but the group had a moderate rate of bad debts - 2.19 per cent - lower than the 3.11 per cent average stated earlier. Those older than 69 has the lowest rate of default, as they also spent the least using credit.
And where credit is concerned, 'prevention is certainly the better way to go', Ms Chen said, unless consumers genuinely understood how credit tools can be managed carefully.
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Those older than 69 has the lowest rate of default, as they also spent the least using credit.
Too old to spend??
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Or too weak to face any bill shock?
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Poor management of money.
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Its the PAP fault for increasing costs
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money should never be used unless necessary.
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When they are successful in applying for a credit card, or credit form the bank, what do you think their pay is like?
Are they jobless and have no money, and therefore apply for credit facilities?
They are not exactly penniless, only greedy. Consuming more than they can afford plus not wanting to pay up.
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Necessity is the mother of all inventions.
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Haiz.. greed is mother of all troubles.
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But the government says the country is progressing woh... Maybe our debts are used to finance the progress of the country? House so expensive deh, where got money to pay credit card bills? Owe government money vs owe bank money, of course pay government first lah, if not go jail woh or they cut your electricity or water or kick you out from the house ah!
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May 26, 2010 - The Straits Times
Young and in debt
By Cassandra Goh
ARE younger Singaporeans really struggling with debt sooner than they should be?
According to Straits Times report on a survey by DP Credit Bureau, Singaporeans aged between 21 to 29 years old are experiencing this financial predicament.
RazorTV found out that Singaporeans on the street owned up to an average of 5 credit cards at any one time.
However, most say it is due to different cards having different privileges and discounts. Some admitted to spending more than they earned.
Not surprisingly, the top expenditure amongst Singaporeans is food. Other items include clothes and shopping.
Saving seems to be important to Singaporeans, but some have yet to begin. Those who have started either save a portion or a percentage of their salary.