Credit Card Debt Solution

[The_Bear]

  On 11/2/2014 at 6:02 AM, CH_CO said:

Regardless whatever regulations they impose now , people are going to abuse the credit cards , economy is bad , likely to become worse. You won't be able to stop the banks from issuing these easy credit.

 

Personally , the thing that need to be rein in is the high interest on credit cards , 24% is simply too high. My suggestion to the garmen and is to cut the rate to a more reasonable rate around 10~15% at max.

 

In this way , it make the banks rethink how their strategy would be sustainable in the future. Else , the banks might face a major collapse in the debt industry in 3 to 5 years.

 

Reason why ? Simple economics , if you spend future money , it leave the future with little or zero money , coupled with a 24% interest , think it simply , how can one have a 24% increase in income when you already spent the future money ?? How will the economy grow with ZERO growth in investments/saving? Continue to print $$ ? Is that sustainable?

 

Given the amount of debt floating in the market , it is a time bomb waiting to burst. The ones on top are dumb f**ks surrounded by equally dumb yes man covering this up , i am just waiting for this collapse , see how soon nia.

Agree. It does not make sense to give unsecured credits in multiple of a person's income. Even a person makes $500k a year, giving him 1.1 times of his income will kill him eventually if he maxes out constantly. In practice, it should just be a fraction of their monthly pay, maybe at most 30%. But then again, there will still be heros. 😂😂

[Boringchap]

  On 11/2/2014 at 6:02 AM, CH_CO said:

 

 

Given the amount of debt floating in the market , it is a time bomb waiting to burst. The ones on top are dumb f**ks surrounded by equally dumb yes man covering this up , i am just waiting for this collapse , see how soon nia.

 

Your view is too dismal lah. The banks know the amount of unsecured debt at risk. These figures are also monitored closely by the Monetary Authority of Singapore. Nowhere near collapsing.

Edited November 2, 2014 by Boringchap

[Ktglfc]

Regardless of whatever benefits the banks offered in CC, the Bottomline is always be able to pay in full for whatever one pay in advances using CC.

 

Be prudent and one will b able to grow one wealth :)

[CH_CO]

  On 11/2/2014 at 7:18 AM, Boringchap said:

 

Your view is too dismal lah. The banks know the amount of unsecured debt at risk. These figures are also monitored closely by the Monetary Authority of Singapore. Nowhere near collapsing.

 

Reaction from the top is always late and often slow. Anyway , you say it is monitored , then i would like to ask where does the numbers come from??? Seems like you know , can you share with me ?

Edited November 2, 2014 by CH_CO

[CH_CO]

  On 11/2/2014 at 7:01 AM, Bavarian said:

Agree. It does not make sense to give unsecured credits in multiple of a person's income. Even a person makes $500k a year, giving him 1.1 times of his income will kill him eventually if he maxes out constantly. In practice, it should just be a fraction of their monthly pay, maybe at most 30%. But then again, there will still be heros. 😂😂

 

I have long quoted this problem of loose credit , to some extent , they are aware and are doing things to prevent the rot, more can be done though.

 

Though changing the multiple of how much you can earn is impossible as consumer patterns are different and so are the income nature but changing the maximum rates you can earn will deter banks having the incentive of pushing hard on loose credit.

 

From what i know though i might be wrong , credit card departments usually breakeven from setup cost by 6~24months for most profitable instances and this is one of the most profitable business with almost low to zero risk. What is the risk of throwing credit around when you get 24% for it , let say 1 out 10 defaults it is still a good business , especially with unemployment within 3%. It will be a problem when unemployment increases in any event of an economic downturn.

 

Coupled with the amounts of empty over inflated properties sitting there , it is hard to imagine , job creation and wage growth lesser than 5% , debt increase 5X . What is the outcome ?? You guys think for yourself.

 

For every hero , there are 10 zeros . Maybe i am just pessimistic , don't mind my previous rants , it is just an opinion.

 

 

 

Edited November 2, 2014 by CH_CO

[Yuan]

  On 11/2/2014 at 6:02 AM, CH_CO said:

Regardless whatever regulations they impose now , people are going to abuse the credit cards , economy is bad , likely to become worse. You won't be able to stop the banks from issuing these easy credit.

 

Personally , the thing that need to be rein in is the high interest on credit cards , 24% is simply too high. My suggestion to the garmen and is to cut the rate to a more reasonable rate around 10~15% at max.

 

In this way , it make the banks rethink how their strategy would be sustainable in the future. Else , the banks might face a major collapse in the debt industry in 3 to 5 years.

 

Reason why ? Simple economics , if you spend future money , it leave the future with little or zero money , coupled with a 24% interest , think it simply , how can one have a 24% increase in income when you already spent the future money ?? How will the economy grow with ZERO growth in investments/saving? Continue to print $$ ? Is that sustainable?

 

Given the amount of debt floating in the market , it is a time bomb waiting to burst. The ones on top are dumb f**ks surrounded by equally dumb yes man covering this up , i am just waiting for this collapse , see how soon nia.

 

I totally agree with you.

[CH_CO]

http://www.moneysense.gov.sg/understanding-financial-products/credit-and-loans/types-of-loans/credit-cards/things-to-watch-out-for.aspx

 

I think this link is pretty useful for those who wants to know more about credit and the relevant information , please read this IN DETAIL.

Edited November 2, 2014 by CH_CO

[Sabian]

  On 11/2/2014 at 6:02 AM, CH_CO said:

Regardless whatever regulations they impose now , people are going to abuse the credit cards , economy is bad , likely to become worse. You won't be able to stop the banks from issuing these easy credit.

 

Personally , the thing that need to be rein in is the high interest on credit cards , 24% is simply too high. My suggestion to the garmen and is to cut the rate to a more reasonable rate around 10~15% at max.

 

In this way , it make the banks rethink how their strategy would be sustainable in the future. Else , the banks might face a major collapse in the debt industry in 3 to 5 years.

 

Reason why ? Simple economics , if you spend future money , it leave the future with little or zero money , coupled with a 24% interest , think it simply , how can one have a 24% increase in income when you already spent the future money ?? How will the economy grow with ZERO growth in investments/saving? Continue to print $$ ? Is that sustainable?

 

Given the amount of debt floating in the market , it is a time bomb waiting to burst. The ones on top are dumb f**ks surrounded by equally dumb yes man covering this up , i am just waiting for this collapse , see how soon nia.

Unsecured credit is managed on a portfolio basis. As long as the NPL ratio, the number of rollers/ non rollers are within the acceptable parameters, the banks will accept the risks that come from issuing unsecured credit on a program lending basis. With the credit bureau, the risks to banks have been lowered as they are aware of the exposure each customer has to various banks, their usage pattern, their repayment habit.

 

Ditto for banks issuing company loans, banks will have to do similar due diligence and lend according to their risk appetite.

 

Banks tend to go bust usually because they start taking speculative positions vis a vis their balance sheet or they lend massively to the related parties at less than arm's length.

 

A well-managed portfolio of unsecured credit customers is in demand. Many well capitalised banks will be keen to take them off your hands if you have one...

Edited November 2, 2014 by Sabian

[CH_CO]

Dude, I don't really mean banks collapse but I meant debt structure and the financial well being of the general public

[Thaiyotakamli]

  On 11/2/2014 at 6:24 AM, CH_CO said:

 

reason why i don't think it will work is , you will be sharing client data , something banks aren't willing to . you upload some new clients you give others a chance to tap on them, if your marketing dept or offer isn't strong it makes no sense. negative cycle

So to protect bank interest, they had to sacrifice their clients

[Spring]

  On 11/2/2014 at 8:14 AM, CH_CO said:

 

Reaction from the top is always late and often slow. Anyway , you say it is monitored , then i would like to ask where does the numbers come from??? Seems like you know , can you share with me ?

All banks have a comprehensive reporting to be done monthly to MAS and this includes all sorts of numbers from outstanding loans, deposits, bad debts etc.

The banks report this meticulously and carefully cos the penalty for incorrect reporting can be a substantial fine to even suspension of license.

 

There have been cases in the past of banks being caught by MAS for wrong doing like round tripping of S$ etc so our Central Bank is known for being a good policeman for our financial system and we are known worldwide to have a robust system in place.

[CH_CO]

  On 11/2/2014 at 12:48 PM, Spring said:

All banks have a comprehensive reporting to be done monthly to MAS and this includes all sorts of numbers from outstanding loans, deposits, bad debts etc.

The banks report this meticulously and carefully cos the penalty for incorrect reporting can be a substantial fine to even suspension of license.

 

There have been cases in the past of banks being caught by MAS for wrong doing like round tripping of S$ etc so our Central Bank is known for being a good policeman for our financial system and we are known worldwide to have a robust system in place.

 

haha what are fines to them but thats another thing for another time. If you think they are good then they are good lor , what do i know? I am the regular low classed ah beng

  On 11/2/2014 at 12:43 PM, Thaiyotakamli said:

So to protect bank interest, they had to sacrifice their clients

 

anything you say boss.

Edited November 2, 2014 by CH_CO

[CH_CO]

  On 11/2/2014 at 11:08 AM, Sabian said:

Unsecured credit is managed on a portfolio basis. As long as the NPL ratio, the number of rollers/ non rollers are within the acceptable parameters, the banks will accept the risks that come from issuing unsecured credit on a program lending basis. With the credit bureau, the risks to banks have been lowered as they are aware of the exposure each customer has to various banks, their usage pattern, their repayment habit.

 

Ditto for banks issuing company loans, banks will have to do similar due diligence and lend according to their risk appetite.

 

Banks tend to go bust usually because they start taking speculative positions vis a vis their balance sheet or they lend massively to the related parties at less than arm's length.

 

A well-managed portfolio of unsecured credit customers is in demand. Many well capitalised banks will be keen to take them off your hands if you have one...

 

Dude , i believe you come from the credit side as well ,i don't mean the banks collapsing , i am less concerned with how the banks handle debt but more for the general public. Debt structure and financial well being is my primary concern.

 

In fact , i am pretty worried about japan and the direction they are going. They are just a balloon waiting to pop , escalating debt coupled with rapidly aging population and an increased lifespan. Just worried that it might spill over here.

 

I do know how the banks mitigate their risk but in the event of a global meltdown or any major events , i am pretty sure even the most liquid banks would have problems handling them. The current debt to income ratio is pretty bad in sg and has being consistently increasing the past few years. To me this isn't healthy , in any event of a crisis and when properties/asset prices drop sharply , banks would be force to ask for more from its lenders , in view of the that scenario and the gearing in SG , we shall see how it goes. I might be wrong.

Edited November 2, 2014 by CH_CO

[Camrysfa]

  On 10/29/2014 at 8:32 AM, SGCMsmallcar said:

I have a friend with have a outstation of S$ 200k with many credit cards n credit Line. Min payment per mth will be about 7k. Everyday want to borrow money from ppl. Lend him also no use. This mth settle next mth come again.

 

 

Credit Bureau Singapore (CBS) report Jan 14:

About one in five credit card holders has been rolling his debt for three months. They have records of 250,000 people with this history. Mostly in 35- to 39-year-old age bracket

One of their records: A 54-year-old owed $218,000 from having used 12 cards to roll over his debts.

[L23]

  On 11/2/2014 at 10:01 PM, Camrysfa said:

 

 

Credit Bureau Singapore (CBS) report Jan 14:

About one in five credit card holders has been rolling his debt for three months. They have records of 250,000 people with this history. Mostly in 35- to 39-year-old age bracket

One of their records: A 54-year-old owed $218,000 from having used 12 cards to roll over his debts.

I pray for him...

[Coltplussport]

  On 11/2/2014 at 10:01 PM, Camrysfa said:

 

 

 

Credit Bureau Singapore (CBS) report Jan 14:

About one in five credit card holders has been rolling his debt for three months. They have records of 250,000 people with this history. Mostly in 35- to 39-year-old age bracket

One of their records: A 54-year-old owed $218,000 from having used 12 cards to roll over his debts.

He bought a 5 series using FULL CC.

  On 11/2/2014 at 1:11 PM, CH_CO said:

 

Dude , i believe you come from the credit side as well ,i don't mean the banks collapsing , i am less concerned with how the banks handle debt but more for the general public. Debt structure and financial well being is my primary concern.

 

In fact , i am pretty worried about japan and the direction they are going. They are just a balloon waiting to pop , escalating debt coupled with rapidly aging population and an increased lifespan. Just worried that it might spill over here.

 

I do know how the banks mitigate their risk but in the event of a global meltdown or any major events , i am pretty sure even the most liquid banks would have problems handling them. The current debt to income ratio is pretty bad in sg and has being consistently increasing the past few years. To me this isn't healthy , in any event of a crisis and when properties/asset prices drop sharply , banks would be force to ask for more from its lenders , in view of the that scenario and the gearing in SG , we shall see how it goes. I might be wrong.

This one I not that worried because everyday can hear people say if price come down, I will buy some properties.

[Jimmylim]

think many people just chasing for surface glory blindly... like what you wear (clothes, watches etc) or what you drive (merc, bmw or audi?)

 

let's not try to live at a living standard that we can't afford. aim for it but not live at it before we are there lah. nothing wrong to live simple with not much worries about cash flow. don't go and mind so much about how others look at you. it's your life, control it yourself.

[Jamesc]

Its ok if banks collapse, the gov will just use tax payers money

 

to prop up the banks. The banks can still pay out to top management

 

billions in bonuses.

 

It happened before and it will happen again.

 

I loves banks, just wished I worked for one in senior management.