This Personal Debt Bomb warning sounded by Kuo How Name, President of Credit Counselling Singapore, comes at a good time.
The consumer debt in Singapore has been growing steadily with double digit growth.
A huge component is due to property loans, which now totals $111 billion.
Rollover balances on credit cards has also crossed the $4 billion mark. This is the amount the incurs the hefty 24% pa interest charge.
That is a staggering figure when you consider that there are six million cards issued and the average individual carries 5-6 cards.
Usually, most people will use one or two main cards. Which means to say out of about one million active cards, there’s $4b in rollover balance. This is an average of $4000 per card!
Looks like some high rollers are rolling over their debt.
Rule number one in using a credit card is to pay off the outstanding balance in full every month.