Singapore Credit Situation

Singaporeans are pushing their credit cards to the limit – owing a massive $7.33 billion that they can’t pay off each month. This isn’t just a number – it shows many people are using plastic to cope with daily life.

Think about this: When someone goes to get help with their debts, they typically owe $95,409. That’s nearly two years of median salary for many Singaporeans. The real killer? Credit card interest rates of up to 27.9% are making these debts snowball fast.

Yet oddly, people are still shopping. Stores are doing better, partly thanks to Chinese tourists coming back. Overall spending is expected to grow 2.4% next year.

This creates a puzzling picture: How can people spend more while drowning in debt? Two things might explain this:

• Some are living beyond their means, using credit cards to maintain lifestyles they can’t afford
• Others might be forced to use credit for basic needs as costs rise

For Singapore’s economy, this signals trouble. While spending keeps businesses alive, the mounting personal debt could lead to a wave of defaults, especially if job markets weaken or interest rates stay high.

This debt trend needs fixing before it becomes a crisis that hurts both families and the wider economy.