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I am kind of surprised that the amount of debt has hardly dipped at all, even though the number of people has dipped!
Apr 1, 2011
Debt woes dip as economy picks up
Fewer people knocking on the doors of Credit Counselling Singapore
By Melissa Kok
FEWER Singaporeans and permanent residents (PRs) are seeking help with debt problems.
Last year, 1,066 of them approached charity Credit Counselling Singapore (CCS), down from 1,285 in 2009.
The average amount they owed also dropped over the same period from $74,885 to $73,181.
The dip could be due to the economy rebounding from one of the worst recessions in history, said Ms Tan Huey Min, general manager of the private charity, which offers counselling and help in working out repayment plans.
'Fewer people are unemployed, more are getting better pay and, hence, are able to better manage their finances,' she said.
Singapore has virtually full employment, with workers earning an average of $4,089 a month, an increase from $3,872 in 2009, the latest government figures show.
The number of Singaporeans and PRs seeking help from the charity last year was still higher than the 714 in 2008 and 685 in 2007. Ms Tan said this could be due to the fact that some clients who were affected by the recession did not seek counselling until last year.
Another reason could be greater public awareness of the charity and the assistance it provides, she said.
Its clients are mostly citizens. Last year, 13 per cent of its clients were PRs - most from Malaysia and the Philippines. These foreigners owed an average of $69,840, a drop from $74,072 in 2009. The Singaporeans owed an average of $73,442, down from $75,608 in 2009.
Both the Singaporeans and PRs counselled by CCS owed money to an average of seven creditors.
Meanwhile, the average monthly incomes of the Singaporeans and PRs counselled by the charity have also risen in the past year.
Last year, the Singaporeans took home an average monthly income of $2,370, a slight rise from $2,321 in 2009. The PRs' average monthly income rose to $2,846 from $2,703 in 2009.
Overspending, gambling and job-related problems such as pay cuts and being laid off are the main reasons for Singaporeans getting into debt, according to CCS.
Ms Tan said those at risk of credit problems often spend beyond their means - running up debts on overseas holidays and fine dining, which they find hard to pay off. 'In short, some have treated credit facilities as a supplement-ary source of income,' she said.
Singaporean Desmond Tan (not his real name) found himself owing $93,000 in credit card debt and bank loans. The teacher in his 50s got his first credit card in 2000, which fuelled his habit of betting on soccer and 4-D.
Mr Tan, who earns $4,000 a month, soon found himself with six credit cards, all of which had reached their spending limits. He also took out credit lines with various banks, which piled on more debt.
He finally decided to approach CCS in January, and it helped him work out a repayment plan. 'I regret applying for that first credit card, but the banks used to call all the time and ask if I wanted a new card, and I would just say okay,' he said.
Ms Tan said PRs can get into debt because of overspending, job-related problems and medical expenses. 'Sometimes, PRs tend to buy many presents when they visit home, or they 'sponsor' their relatives to visit Singapore and have to spend money during these visits,' she explained.
Some of them may not own their own homes, and having to pay rent further raises their living expenses.
'Without proper management of their finances, they overspend,' said Ms Tan.
One Filipino, who wanted to be known only as Eddy, found himself owing $99,000 because he took out five credit lines and 12 credit cards to buy a four-room Housing Board flat in early 2008.
The 39-year-old technician, who earns $3,100 a month, thought it would be more affordable to buy a flat rather than pay rent.
But the recession which kicked in shortly after reduced his take-home income, and soon he was struggling to pay off the debt. That was when he sought help from CCS.
'I don't regret what I did, because I needed the cash upfront to pay for the flat, but I'm thankful I got help,' he said.
'Now I don't need the credit cards, and I don't want one any more.'
melk@sph.com.sg
Apr 1, 2011
Debt woes dip as economy picks up
Fewer people knocking on the doors of Credit Counselling Singapore
By Melissa Kok
FEWER Singaporeans and permanent residents (PRs) are seeking help with debt problems.
Last year, 1,066 of them approached charity Credit Counselling Singapore (CCS), down from 1,285 in 2009.
The average amount they owed also dropped over the same period from $74,885 to $73,181.
The dip could be due to the economy rebounding from one of the worst recessions in history, said Ms Tan Huey Min, general manager of the private charity, which offers counselling and help in working out repayment plans.
'Fewer people are unemployed, more are getting better pay and, hence, are able to better manage their finances,' she said.
Singapore has virtually full employment, with workers earning an average of $4,089 a month, an increase from $3,872 in 2009, the latest government figures show.
The number of Singaporeans and PRs seeking help from the charity last year was still higher than the 714 in 2008 and 685 in 2007. Ms Tan said this could be due to the fact that some clients who were affected by the recession did not seek counselling until last year.
Another reason could be greater public awareness of the charity and the assistance it provides, she said.
Its clients are mostly citizens. Last year, 13 per cent of its clients were PRs - most from Malaysia and the Philippines. These foreigners owed an average of $69,840, a drop from $74,072 in 2009. The Singaporeans owed an average of $73,442, down from $75,608 in 2009.
Both the Singaporeans and PRs counselled by CCS owed money to an average of seven creditors.
Meanwhile, the average monthly incomes of the Singaporeans and PRs counselled by the charity have also risen in the past year.
Last year, the Singaporeans took home an average monthly income of $2,370, a slight rise from $2,321 in 2009. The PRs' average monthly income rose to $2,846 from $2,703 in 2009.
Overspending, gambling and job-related problems such as pay cuts and being laid off are the main reasons for Singaporeans getting into debt, according to CCS.
Ms Tan said those at risk of credit problems often spend beyond their means - running up debts on overseas holidays and fine dining, which they find hard to pay off. 'In short, some have treated credit facilities as a supplement-ary source of income,' she said.
Singaporean Desmond Tan (not his real name) found himself owing $93,000 in credit card debt and bank loans. The teacher in his 50s got his first credit card in 2000, which fuelled his habit of betting on soccer and 4-D.
Mr Tan, who earns $4,000 a month, soon found himself with six credit cards, all of which had reached their spending limits. He also took out credit lines with various banks, which piled on more debt.
He finally decided to approach CCS in January, and it helped him work out a repayment plan. 'I regret applying for that first credit card, but the banks used to call all the time and ask if I wanted a new card, and I would just say okay,' he said.
Ms Tan said PRs can get into debt because of overspending, job-related problems and medical expenses. 'Sometimes, PRs tend to buy many presents when they visit home, or they 'sponsor' their relatives to visit Singapore and have to spend money during these visits,' she explained.
Some of them may not own their own homes, and having to pay rent further raises their living expenses.
'Without proper management of their finances, they overspend,' said Ms Tan.
One Filipino, who wanted to be known only as Eddy, found himself owing $99,000 because he took out five credit lines and 12 credit cards to buy a four-room Housing Board flat in early 2008.
The 39-year-old technician, who earns $3,100 a month, thought it would be more affordable to buy a flat rather than pay rent.
But the recession which kicked in shortly after reduced his take-home income, and soon he was struggling to pay off the debt. That was when he sought help from CCS.
'I don't regret what I did, because I needed the cash upfront to pay for the flat, but I'm thankful I got help,' he said.
'Now I don't need the credit cards, and I don't want one any more.'
melk@sph.com.sg
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