Monday, February 25, 2013

Credit card debts


Someone asked:
Are many Singaporeans living off credit cards?

REPLY
I do not have the exact figures, but I have been approached by many people who are not able to manage their credit card debts.

It is easy to get into debt from:
a) medical bills
b) unemployment
c) gambling
d) over-spending on luxury goods or entertainment

It is also easy to charge to the card. Then the interest rolls up. And the problem becomes more difficult each month.

Some people borrow from a new card to repay off the old card. The problem gets bigger. Besides the high rate of interest, they have to pay late payment charges ($50 each time) and legal fees (when the lawyer writes a letter of demand for the bank).

For people who get into trouble, they can consult Credit Counselling Singapore, http://www.ccs.org.sg/

This is set up by the Government. Their people are specially trained and well connected with the banks. They can help you.

2 comments:

Xianlong said...

Credit cards are like growth hormones injected to cows to produce more.

World economy has essential reached a limit when it is so heavily debt laden. A prolonged period of deleveraging among consumers follows.

linda dale said...

Really nice information about credit card.Actually i am also looking forward to get one credit card but i am little confused about it as many people said sometimes it create problems on credit score.

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