More credit card holders not paying their bills in full

[Musicwhiz]

Thanks to hyom for this link and news. I thought it was important enough to warrant a separate thread.....

More credit card holders not paying their bills in full
By Joanne Chan | Posted: 25 October 2010 1920 hrs, CNA

SINGAPORE: The number of credit card holders who do not pay their bills in full has increased, based on a snapshot by Credit Bureau Singapore. These "frequent revolvers" pay a portion of their bills and roll over the outstanding balance for at least three consecutive months.

In August, frequent revolvers accounted for more than one quarter of all credit card holders in Singapore, an increase of 0.43 per cent from December 2009.

However, Credit Bureau Singapore's Executive Director William Lim, said that there is no cause for alarm.

"As at August 2010, there's a very slight, very marginal increase, which is about 20,000 (new frequent revolvers)," he said.

The bureau added that the number of people who don't pay the minimum sum, termed "delinquents", and those who are written off by banks as bad debt, known as "defaults", have dropped.

The percentage of delinquents fell to 4.95 per cent in August, down 0.16 percentage points from December 2009 and the percentage of defaults have dipped slighted by 0.01 points to 0.14 per cent.

Tan Huey Min, General Manager at Credit Counselling Singapore, says optimism over an improving economy could have contributed to an increase in the rollover of debt.

"People are holding on to their jobs, they could even be getting increments. So they are revolving - they can continue to pay. Some of them could also be very optimistic of the outlook, so they're spending more. So if they spend more, it could also mean that they can't pay off in full."

According to Credit Counselling Singapore, fewer people have come forward for help to repay their debts.

The agency saw 820 people in the first nine months of 2010, compared to 944 in the same period in 2009.

Credit Counselling Singapore adds that a rolling debt can be a potential problem as frequent revolvers could find themselves in a tight situation should the economy takes a sudden dip, and may even face depression when they are unable to pay off their debts.

-CNA/ac

[Ben]

"People are holding on to their jobs, they could even be getting increments. So they are revolving - they can continue to pay. Some of them could also be very optimistic of the outlook, so they're spending more. So if they spend more, it could also mean that they can't pay off in full."

I really can not understand nor agree to this kind of reason. It is like a healthy and fit person looking at the mirror and say: "I am fit and healthy, I can afford to not exercise and eat unhealthy food". We all know what will happen after that...

[momoeagle]

Ben, I couldn't agree more with you.

I find some of the reasons these so called professionals come up with super lame. They are basically assuming that humans have low intelligence.

[Musicwhiz]

Ben, I couldn't agree more with you.

I find some of the reasons these so called professionals come up with super lame. They are basically assuming that humans have low intelligence.

Hoho I agree with Momo!

1) It's an insult to our intelligence.

2) These "experts" have to come out to justify almost everything. Somehow it's hard to admit there's a problem. Why??

3) Would admitting there's a problem demonstrate that their tactics have been less than effective in supposedly containing the problem? To avoid making themselves look bad, they rationalize it away.

4) Therefore, being unable or unwilling to confront and solve the problem only means that it will get much worse!