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MORE SINGAPOREANS IN DEBT TRAP Big spenders chalk up debts of more than a year's salary from splurging non-stop By Yasmine Yahya, The Sunday Times, 2 Nov 2014 It is so easy these days to shop online 24 hours a day, book a trip to Europe on an instalment plan or even make an appointment for cosmetic surgery in Seoul. So easy, in fact, that more Singaporeans are falling into the trap of overspending and chalking up massive debts. Just over half of those who sought help at Credit Counselling Singapore (CCS) last year landed in debt after splurging on brand- name goods, holidays and clubbing, among other things. "Debtors usually have more than one reason. They may overspend and then become more vulnerable to get-rich-quick schemes, time shares or gambling, and one thing leads to another and the debt gets bigger and bigger," said CCS president Kuo How Nam. "But the first cause is usually overspending because many people are living lifestyles not justified by their incomes." There may be more than 40,000 people who owe more than a year's income from credit cards and other unsecured loans such as personal lines of credit or overdrafts. The Monetary Authority of Singapore estimates that 3 per cent of unsecured credit borrowers' debts exceed their annual incomes. Based on Credit Bureau (Singapore) data showing that 1.44 million people had at least one credit card account at the end of last year, The Sunday Times estimates there to be 43,000 people who had debts of more than a year's salary. Last year, the average debtor who turned to CCS for help owed $84,447 to seven creditors, but Mr Kuo said that figure is skewed by gamblers, who owe the biggest sums. Most others have debts in the tens of thousands of dollars, and they make up a big group. "A lot of it has to do with peer pressure or their own values. Some people say they feel they deserve to indulge themselves - they've worked hard, so they deserve to take more cab rides or a holiday even if they can't afford it," he said. "I asked a debtor once, 'Why did you carry on spending like this?' And the answer was that he was hopeful that some day his income would rise to a level where he could pay off his debt." Financial advisers say that is a common problem. SingCapital chief executive Alfred Chia said e-commerce has made it easy for people to use credit cards to shop round the clock, buying things they do not need. Even small purchases can add up. Travel-related temptations are also pervasive, he noted. "Some travel agencies have tied up with banks to offer trips to places like Europe on interest-free instalment plans so you can pay for your holiday over 12 or even 24 months," he noted. And if you do not make your monthly payments, you end up with interest charges and late fees. Financial planner Damian Pang notices that people are taking more holidays, including "staycations" at hotels in Singapore. "In the past, holidays were seen as a luxury but with so many budget flights now, people take two or three holidays a year. And in the past, we never had staycations. That's a norm now," he said. He is also seeing more clients going abroad, especially to South Korea, for cosmetic surgery. "That's the power of K-Pop. These trips can easily cost $10,000," he said. Financial advisers note that overspenders may not splash out on flying business class or staying at top hotels, but they do overspend on shopping or eating out. "They travel to exotic places, buy branded goods and dine at Michelin-starred restaurants," said Eternal Financial Advisory chief executive Viviena Chin. "The temptation is very high when you are overseas to go crazy shopping. Things are nicer or cheaper and you think you might not come back again soon, so just swipe the card and forget about tomorrow."

Link RETIRE at 55 and enjoy what life has to offer. William (not his real name) had it all worked out. But his son's gambling debts has scuttled everything he had worked for. The 60-year-old once dreamt he would be kicking back by age 55. But now, by his own calculations, even retiring at 67 might be a stretch. His son owes $40,000 in credit card debts and $2,000 in loans from licensed moneylenders. These arose from gambling losses, part of which were incurred at a local casino. William, an administrator in the education industry, is among those suffering from the effects of problem gambling. He is still lending his son, an executive in the IT industry in his 30s, money to pay the minimum sum on his credit cards. William and his wife, a 60-year-old housewife, live with their bachelor son in a condominium unit. William, who requested anonymity, told The New Paper on Sunday over the phone: "In this situation, because my son still comes to me for financial help... I might be able to retire only at 65 or 67. "I need to continue working to build up my retirement fund. It has been depleted because I lent (my son) moneyto pay off his debts over many years." William said that his son David (not his real name) lost $10,000 at the Resorts World Sentosa (RWS) casino after just six weeks of its opening here last year. David spent most his weekends at RWS, lured by the spinning wheels and rolling dice. He would take the light rail system there. And if he was impatient to hit the tables, he would take a taxi. William, who does not gamble, said: "It was very convenient. My son just needed to cross the bridge to Sentosa." The daily levy of $100 was no deterrent. Instead, it encouraged David to stay overnight in the casino to make full use of the levy's 24-hour validity. His losses led to arguments at home when he asked his parents for help. William said: "As parents, we will help in any way we can, but my son and I often ended up arguing for hours. "Casinos create a vibrant, beautiful and colourful environment that entices gamblers. Although the target is tourists, some locals have become collateral damage." After his six weeks of losses, David decided that it was best to self-exclude himself from the casinos.

Read about $$ thread which struck me..how do people solve their financial problems? how to settle debts?this is another posting I came across from other forum.Maybe we can share how one release himself from debts.. I really don't understand why some can spend beyond their means and got into heavy debts.....I have seen friends getting into debts due to extravagant spending. copied from other forum Help!I desperately need some advice from you all. Problem no. 1: I am married,pregnant and in debt of more than 20k from credit card bills due to extravagant spending in the past. It has been 2 years and the outstanding sum are snowballing with interest adding up every month and I have been struggling very hard to meet the minimum payment. Now I realise my mistake and has not been using my credit cards for the past 2 years but I still cant pay my debts with 24% yearly interests snowballing. To be honest, I am still keeping a car. I know I cant be owning a car at this point of time but I cant sell my car for several reasons: - My job needs a car and w/o a car i would have to give up my current job - I might end up in a job with a lower pay ( as I have no other experience in other fields of work) and yet still got to pay the bank the loss I have incurred (abt 15K) in instalments - I cant quit my job now cos I am pregnant and I have $0 savings. - If i sell my car now,i would be in another debt of 15K Keeping a car is really expensive in Singapore.I pay more than 1K per month to upkeep the car and that is excluding maintenance,half yearly road tax and the yearly expensive insurance. Though I am using my car to work for my company, they only pay for my petrol and carpark fees. To conclude: if i sell my car, i have to settle for a low pay job and end up in bigger debts. Problem no.2: My baby was unplanned and at times I really hope I am not pregnant at all. (I am currently 2 months pregnant).I decided to keep the baby as I am not young anymore.I am 31 and my husband 33 this year. After i give birth,there'll be no one to do confinement and take care of my baby for me.(Mum and MIL are both working full time to make ends meet)I cant afford any confinement lady with my current financial situation. Having a baby is going to add up my monthly expenses and my ability to repay the bank is diminishing and I might just end up in more and more debts with interests and miscellaneous bank fees adding up. Though i am lucky to have a supporting husband who give every cents of his salary to me but he's not making much despite working very hard.I felt guilty that I got him into my debts. We are staying in a resale 4 rm flat and is oso struggling to pay the monthly instalments/household and other miscellaneous bills etc.... We cant sell our flat cos we just bought it not long ago. And even if we sell our flat now, it's a negative sale; meaning we wont get a single cent out of the sale cos we bought at quite a high price. I think I seriously have some problems in managing $$$ What do u think I should now?

Source: http://sgblogs.com/entry/citizens-chalking...rd-debts/377944

http://sg.news.yahoo.com/cna/20081028/tap-...ee-231650b.html ""There are some one million credit card holders in Singapore in June 2008. Of these, nearly four in 10 roll over their credit payment, meaning they pay a minimum amount of their outstanding bill each month."" Four in ten roll over their credit?? Is it really this bad??? I think 40% is a very high figure !!! This 40% really have no money to pay or they just refuse to pay on time??? I wonder ?? 40% is really !!!! Anyone here care to shed some truth ?? Or the news is really the truth ???

can go look for cheap new cars in the newspapers ====================================== HEATED competition among parallel importers has claimed its first casualty: Frankel Motor, one of the more active players in the field. The four-year-old company which sold about 1,000 mostly Japanese cars last year from its Frankel Avenue and MacPherson Road outlets, is in receivership after it fell behind on payments to financial institutions. Companies like Bank of East Asia, Kenso Leasing, OCBC Bank and GE Money have filed lawsuits to try and recover sums ranging from $82,000 to $4.4 million from Frankel. Similar writs have been filed against associate Frankel Leasing; and their director Mr Ho Yik Fuh. Salesmen at Frankel yesterday said they were unaware of its financial woes, even if the crisis has hit several customers. Some have made police reports to try and recover their deposits or get their cars delivered. A police spokesman said 'we're looking into the matter'. One buyer, information technology professional Jeremy Chan, 31, said: 'I booked my Toyota Axio in September, my certificate of entitlement was secured in October, but I got it only this Wednesday.' He added that he was 'forced' to pay $3,000 on top of the purchase price of $60,000 to get it. 'It was a nightmare,' he said. 'I am making a police report too.' Parallel importers emerged in the 1990s when car import rules were relaxed. From a slow start, they now make up 25 per cent of new car sales. But success spawned scores of players, who undercut each other. Observers said this could have been Frankel's problem. Two of its lenders - OCBC Bank and GE Money - have appointed receivers to try and recover some of the debts by selling off Frankel's assets, mainly cars. OCBC and GE Money have appointed receivers, Ferrier Hodgson and Stone Forest respectively, to the task. OCBC is believed to be owed about $4.4 million and GE Money around $2 million. Mr Timothy Reid of Ferrier Hodgson said yesterday his firm is advertising in today's Straits Times Classified section to dispose of a number of Frankel's cars, which are now in a warehouse.