Flashy lifestyles hide hints of credit card woes
By Chew Hui Yan Posted 25 Jun 2016 15:16 Updated 26 Jun 2016 02:22
SINGAPORE: They flash their credits cards at high-end restaurants and hang out at hip nightspots. The more adventurous among them think nothing about taking yearly vacations in the most exotic, far-flung places.
But such a lifestyle has also been identified as the main reason young professionals tend to rack up unsecured debts, Credit Counselling Singapore (CCS) said.
The organisation, which helps people clear their debts, believes a lot of this is due to peer pressure.
“If you have friends who go clubbing a lot, you might feel pressured to go with them because if you don’t, you’d start to lose your friends,” CCS president Kuo How Nam said in an interview with Channel NewsAsia.
This pressure might eventually lead to an unsustainable lifestyle, which is further glamourised on social media platforms like Snapchat and Instagram.
“Don’t be fooled; people might post pictures of designer bags and nice restaurants but what you don’t see is how much they owe,” Mr Kuo said.
“Once, I picked up an issue of Tatler magazine (a luxury publication targeted at high-net-worth individuals) and recognised a client. Social status is more a function of how much you spend rather than how much you have.”
The CCS administers the Repayment Assistant Scheme, which was introduced in April last year to help those with large unsecured debts.
In 2015, it counselled 4,675 people, of which about 11 per cent were aged 30 and below. People aged 31 to 40 make up more than one third (about 1,800) of the total.
The CCS said this could be due to several reasons. For instance, people aged 31 to 40 may have young children and parents to look after; younger ones are less likely to have such responsibilities. Younger professionals thus are under less pressure financially and have greater freedom to spend on themselves.
Another contributing factor is the fact that one needs a minimum annual income of S$30,000 to be eligible to apply for a credit card. This means young adults who have just entered the workforce might not even qualify.
Mr Alfred Chia, the chief executive officer of financial planning company SingCapital, also noted that young professionals tend to have better financial literacy and responsibility compared to the older generation.
“The numbers are healthy and we’ve seen an increase in young working adults seeking financial planning,” he said. Over the last five years, SingCapital has seen an annual increase of 8 to 10 per cent in clients aged 30 and below.
Despite these encouraging statistics, Mr Kuo offered this note of caution for young professionals: “Be careful. How you spend your money is affected by who you mix with. This determines your lifestyle which decides whether or not you get into debt.”
It is also never too early for young professionals to start planning their finances, said Mr Chia. “It is normal for us to deviate from our plan but having one will remind us to come back to it,” he said.
For more on unsecured debt, catch Channel NewsAsia’s Spotlight segment on Sunday, Jun 26, at 10pm.
- CNA/av
- wong chee tat :)
Showing posts with label credit card. Show all posts
Showing posts with label credit card. Show all posts
Monday, June 27, 2016
Saturday, June 4, 2016
Bank Cards - Recent Updates
Bank Cards - Recent Updates
- With effect from 1 June 2016, DBS CapitaCard Card and DBS CapitaCard Debit Card will be discontinued. As such, your DBS CapitaCard Card and supplementary card(s) (if any) have been automatically closed from that date.
For more information, click here for "Frequently Asked Questions". - With effect from 1 June 2016, the annual fees for DBS Takashimaya Visa Card will be revised to S$192.60 for Principal Card and S$96.30 for each Supplementary Card.
- With effect from 1 May 2016, the POSB Everyday Card cash rebates will be revised:
Your Spend Cash Rebate SPC 6% Sheng Siong 5% Watsons 3% StarHub 1% SP Services 1% Other participating merchants Up to 40% All other spend 0.3% Terms and conditions apply. - With effect from 1 June 2016, the DBS Altitude Card's miles earn rate for online Flight and Hotel transactions will be revised to 3 miles per S$1 spent (capped at S$5,000 per month).
- With effect from 11 March 2016, the minimum income requirement for card application for DBS Black Card, DBS Altitude Card and DBS Takashimaya American Express® Card will be reduced to:
- S$30,000 and above per annum (Singaporean)
- S$45,000 and above per annum (Foreigner)
- Registration and top-up charges for NETS FlashPay Auto Top-Up (ATU) by Credit/Debit Card and GIRO are currently waived till 31 March 2016. From 1 April 2016, an Auto Top-Up fee of $0.25 (GST inclusive) will be charged for each Auto Top-Up transaction by Credit/Debit Card and $0.15 (GST inclusive) for each Auto Top-Up transaction by GIRO.
- With effect from 1 April 2016, your DBS Live Fresh Card benefits will be revised:
Your Spend What You Get Back Online Purchases 3X DBS Points Local Visa payWave Transactions 3X DBS Points - With effect from 1 April 2016, your DBS Black American Express® Card benefits will be revised:
Earn 1X Rewards (1 DBS Point or 2 miles for every S$5 spend) for everything you charge to your DBS Black American Express® Card. - Please note the following change to our DBS Takashimaya Cards effective 1 May 2016:
Purchases at BEST DENKI, Ngee Ann City will not be eligible for Takashimaya Bonus Points. - Continuing our ‘Go Green’ journey, effective 1 October 2015, the Bank will cease to mail out debit card statements of debit card whose primary account tagged to it is a POSB Passbook Savings Account.
However as part of our concern on the security of your card usage, for debit card transactions that are of a higher risk such as card-not-present purchases (online or mail-order/telephone-order transactions) that do not require 3D secure technology One-Time-Pin sent to your bank-registered mobile number or magnetic stripe “Swipe” purchases overseas, the bank will be sending you statements for the month where you have incurred these purchases so that you are kept updated.
Customers are encouraged to update their passbook regularly to track their transactions or upgrade their POSB Passbook Savings Account to a POSB eSavings Account at any branch or via iBanking to enjoy the convenience of eStatement that they can view anytime, anywhere. - With effect from 1 September 2015, the administrative fee (also known as dynamic currency conversion charge) charged on all Visa/MasterCard Singapore Dollars transactions performed overseas or on foreign websites, shall be revised according to the following table. Before making a purchase, you may wish to check with the merchant as to whether the transaction will be processed outside of Singapore.
Visa/MasterCard Debit Cards From 0.8% to 2.8% fee MasterCard Credit Cards From 0.8% to 1% fee Visa Credit Cards 0.8% fee (no change) - All debit card retail transactions in foreign currency are subject to a charge imposed by the respective card associations (Visa/MasterCard), either as a reimbursement charge representing the charge imposed on us or as a direct charge to you. For foreign currency transactions converted by card associations, a conversion factor of 1% is applied to the converted amount. In addition, an administrative fee for services provided or actions taken by us in relation to such foreign currency transactions shall be payable by you and debited from your Card Account. With effect from 1 September 2015, our administrative fee will be revised from 2% to 2.25% on the converted Singapore Dollar amount for foreign currency retail transactions involving VISA/MasterCard Debit Cards.
- The amount withdrawn at overseas ATMs with your ATM/Credit/Debit Cards is subject to a charge imposed by the respective Visa/MasterCard card associations, either as a reimbursement charge representing the charge imposed on us or as a direct charge to you. With effect from 1 September 2015, the total administrative fee will be revised from 3% to 3.25% on the converted Singapore Dollar amount for the foreign currency amount withdrawn (comprising a charge of up to 1% by the respective Visa/MasterCard card associations) and this fee shall be payable by you and debited from your Card Account.
- In line with MAS' issuance of Banking (Credit card and Charge card) Regulations 2013 and MAS Notice 635 on 29 November 2014, please take note of the key regulation changes applicable for Credit Cards and Unsecured facilities holders. Click here for the Frequently Asked Questions (FAQs).
- In line with an industry-wide initiative led by the Association of Banks in Singapore, we have replaced the Magnetic Stripe ATM Cards to the Chip ATM Cards. Effective 1 April 2015, onlychip-cards will be accepted for NETS transactions and at DBS/POSB ATMs and CAMs. For more information, please click here for the Frequently Asked Questions (FAQs).
- Enjoy fee waiver on your cash withdrawal in Australia at over 3,000 Westpac Group ATMs (Westpac, St. George Bank, Bank of Melbourne and BankSA) with your DBS/POSB Cards with Plus/ Cirrus logos from 1 April 2015. List of Westpac Group ATMs (including Westpac, St. George Bank, Bank of Melbourne and BankSA branded ATMs nationwide) can be found onhttp://www.westpac.com.au/locateus/. Other charges apply. Please click here for details.
- wong chee tat :)
Monday, November 30, 2015
Singapore bank lending shrank in October, credit card billings rose
Singapore bank lending shrank in October, credit card billings rose
Total loans and advances by banks amounted to S$601.7 billion in October, down from S$608.3 billion in September and S$613.5 billion in August.
POSTED: 30 Nov 2015 13:09
SINGAPORE: Bank lending in Singapore fell for the second straight month in October as loans to businesses declined, data from the Monetary Authority of Singapore (MAS) showed on Monday (Nov 30).
Total loans and advances by banks amounted to S$601.7 billion in October, down from S$608.3 billion in September and S$613.5 billion in August, in a sign that economic activity is slowing. Compared to a year ago, bank lending fell 0.4 per cent.
Loans to businesses fell 1.9 per cent month-on-month to S$360.2 billion in October, while consumer loans edged up 0.2 per cent to S$241.5 billion.
Meanwhile, credit card billings rose 5.6 per cent in October from a year ago to S$4.115 billion.
Banks wrote off S$28 million in bad debts, up from S$27.2 million in September and S$26.4 million a year ago.
The rate of increase in bad credit card debts – at 6.1 per cent year-on-year – was, however, much slower than the rise seen in recent months.
- CNA/cy
- wong chee tat :)
Total loans and advances by banks amounted to S$601.7 billion in October, down from S$608.3 billion in September and S$613.5 billion in August.
POSTED: 30 Nov 2015 13:09
SINGAPORE: Bank lending in Singapore fell for the second straight month in October as loans to businesses declined, data from the Monetary Authority of Singapore (MAS) showed on Monday (Nov 30).
Total loans and advances by banks amounted to S$601.7 billion in October, down from S$608.3 billion in September and S$613.5 billion in August, in a sign that economic activity is slowing. Compared to a year ago, bank lending fell 0.4 per cent.
Loans to businesses fell 1.9 per cent month-on-month to S$360.2 billion in October, while consumer loans edged up 0.2 per cent to S$241.5 billion.
Meanwhile, credit card billings rose 5.6 per cent in October from a year ago to S$4.115 billion.
Banks wrote off S$28 million in bad debts, up from S$27.2 million in September and S$26.4 million a year ago.
The rate of increase in bad credit card debts – at 6.1 per cent year-on-year – was, however, much slower than the rise seen in recent months.
- CNA/cy
- wong chee tat :)
Sunday, November 22, 2015
MORE PEOPLE IN CREDIT CARD DEBT
MORE PEOPLE IN CREDIT CARD DEBT
ACCORDING TO THE CREDIT BUREAU SINGAPORE, THE TOTAL NUMBER OF DELINQUENT DEBTORS HIT MORE THAN 101,490 THIS YEAR
Nov 22, 2015 6:00am
BY SEOW YUN RONG
He had a good job that paid him $7,500 a month but the way he used his credit cards, you would think he earned a lot more.
The debts snowballed and before Mr Toh knew it, he owed $103,000 to the banks.
His story is typical of many who have been caught up in a credit card debt situation which has spiralled out of control.
In 2011, the total number of delinquent debtors was just over 73,000.
These are people who pay nothing or less than the minimum sum on their credit card debts.
According to the Credit Bureau Singapore, it has hit more than 101,493 this year.
It is the same story with revolving debtors who roll their credit card debts by covering at least the minimum sum.
More people are also turning to debt counsellors for help.
According to Credit Counselling Singapore (CCS), the biggest credit card debt this year is a whopping $1,552,000.
Mr Toh, too, had no choice but to pick up the phone when he realised he had lost all control.
As with everything, it started small.
The 39-year-old, who now works as a sales officer and part-time taxi driver, was a regional sales manager in 2005 and frequently travelled.
He carried several credit cards to cover his travelling expenses, which his employers reimbursed the following month.
Despite the reimbursement, he'd pay only the monthly minimum sum of $2,500 for his five credit cards for about three years.
He says: "I was earning quite a decent sum then, so I thought I could give my family a better life and pay back the following month."
But he lost track of how much he was spending and how much he could claim, he adds.
Besides paying his parents' medical bills of about $1,000 a month, he would also take his family of seven to restaurants and shopping malls twice a week. A night out typically cost $300.
QUIT JOB
It all went downhill after Mr Toh quit his job in 2012.
He then earned only about $3,500 as a part-time sales officer and taxi driver but the debts followed him.
He says: "At that time, I only thought of my family. I didn't have the motivation to pay more than the minimum sum for my debts."
He did not have enough left over to cover the $2,500 minimum payment each month.
Mr Toh took a bank loan of $10,000 to pay off his credit card debts, only to find out that it was not enough and that loan accumulated interest, too.
His credit card debt snowballed to $103,000 and his financial struggles contributed to his divorce in 2012.
Last year, he finally sought help from CCS.
He now follows the Debt Management Programme which will help him clear all his debt in the next three years.
He says he is thankful for the help from CCS. His sisters are also helping by paying for their parents' medical bills.
Mr Toh says: "Without the support from CCS and my family, I don't think I could ever finish paying my debt."
People who need help shouldn't wait, says Ms Tan Huey Min of CCS.
"People with a debt issue have to deal with it as soon as possible before it snowballs into a greater sum every month," she adds.
Debtors must be mindful of economy
Last month, Prime Minister Lee Hsien Loong warned that Singapore must brace itself for a possible downturn.
Ms Tan Huey Min of Credit Counselling Singapore (CCS) says debtors have to be mindful of the economy and how it will affect their income.
"Once they know that their income is affected, they have to take quick actions to solve the problem before it snowballs into a greater debt," she says.
She adds that while some people gamble their way into debt, the top reason for getting into credit card debt is overspending.
Here's how two individuals found themselves on the slippery slope of credit card debt.
SHOPPING
Mr Nor, 57, often used his credit cards when shopping in Malaysia and Indonesia.
Thinking that he was saving money because of the exchange rate, he used his credit cards to pay for almost everything.
He says: "It was so convenient to keep using my credit cards even in supermarkets."
Mr Nor was earning about $2,000 a month as an administrative officer and an extra $1,000 as a part-time driver.
In 2009, he lost his part-time job and had incurred a debt of about $60,000 from using four credit cards and from four bank loans.
Even though he paid the total minimum sum of $2,000 a month for four years, he still owed $60,000 in 2013 because of interest.
He says: "When the bank warned me about paying immediately, I was so afraid because if I didn't pay up, they said they would take me to court."
He has been on CCS' Debt Management Programme (DMP) for about two years now. In four years' time, he will be debt-free.
GAMBLING
By the time he hit rock bottom in 2012, regional product manager Lee, 44, had a debt of $550,000.
His problem was gambling. He said he would often take foreign visitors to the casinos here but eventually developed an interest in gaming himself.
He says: "The boredom I had after work eventually led to me gambling just for fun.
"As my bets got bigger and bigger, using the credit card became very convenient."
To pay off his credit card debts, he took up three bank loans but continued gambling while paying $1,000 to cover the minimum sum for the three cards he had.
He has been on the DMP for two years and has been paying his debt regularly since then.
Learn to manage your debt
A talk on debt management will be held today at Khoo Teck Puat Hospital.
Jointly organised by National Addictions Management Service, Khoo Teck Puat Hospital and North West Community Development Council, the talk is open to the public.
WHAT About National Addictions Awareness Day WHEN Today, 10am to 3pm WHERE Khoo Teck Puat Hospital
For more details, go to www.nams.sg/arc
BY THE NUMBERS
TOTAL NUMBER OF CREDIT CARD HOLDERS IN SINGAPORE
1,611,008
2015
1,388,828
2011
DEBTORS SEEKING HELP
3,308
2015
2,458
2014
1,838
2013
AVERAGE DEBT PER DEBTOR WHO SOUGHT HELP
$99,623.25
2015
$82,940.25
2013
DELINQUENT DEBTORS (PAYING NOTHING OR LESS THAN MINIMUM SUM)
101,493
2015
73,607
2011
REVOLVING DEBTORS (ROLLING DEBT BY COVERING ONLY MINIMUM SUM)
566,966
2015
510,687
2011
BIGGEST DEBT AMOUNT$1,552,000
2015
$1,281,042
2014
$1,707,657
2013
All figures are from Credit Bureau Singapore and Credit Counselling Singapore. Figures for this year are as of September.
Helplines
The Association of Banks in Singapore introduced the Repayment Assistance Scheme (RAS) this year to help borrowers reduce their credit card debt and other unsecured credit loans over time.
The RAS is administered by the Credit Counseling Singapore (CCS), which centralises repayment solutions.
To be eligible, your income must be less than $120,000 per annum and your outstanding unsecured debt must be greater than your annual income before June 1 this year.
RAS: 6996-6006
CCS: 6225-5227
National Addictions Management Service: 1800-6668-668
- wong chee tat :)
ACCORDING TO THE CREDIT BUREAU SINGAPORE, THE TOTAL NUMBER OF DELINQUENT DEBTORS HIT MORE THAN 101,490 THIS YEAR
Nov 22, 2015 6:00am
BY SEOW YUN RONG
He had a good job that paid him $7,500 a month but the way he used his credit cards, you would think he earned a lot more.
The debts snowballed and before Mr Toh knew it, he owed $103,000 to the banks.
His story is typical of many who have been caught up in a credit card debt situation which has spiralled out of control.
In 2011, the total number of delinquent debtors was just over 73,000.
These are people who pay nothing or less than the minimum sum on their credit card debts.
According to the Credit Bureau Singapore, it has hit more than 101,493 this year.
It is the same story with revolving debtors who roll their credit card debts by covering at least the minimum sum.
More people are also turning to debt counsellors for help.
According to Credit Counselling Singapore (CCS), the biggest credit card debt this year is a whopping $1,552,000.
Mr Toh, too, had no choice but to pick up the phone when he realised he had lost all control.
As with everything, it started small.
The 39-year-old, who now works as a sales officer and part-time taxi driver, was a regional sales manager in 2005 and frequently travelled.
He carried several credit cards to cover his travelling expenses, which his employers reimbursed the following month.
Despite the reimbursement, he'd pay only the monthly minimum sum of $2,500 for his five credit cards for about three years.
He says: "I was earning quite a decent sum then, so I thought I could give my family a better life and pay back the following month."
But he lost track of how much he was spending and how much he could claim, he adds.
Besides paying his parents' medical bills of about $1,000 a month, he would also take his family of seven to restaurants and shopping malls twice a week. A night out typically cost $300.
QUIT JOB
It all went downhill after Mr Toh quit his job in 2012.
He then earned only about $3,500 as a part-time sales officer and taxi driver but the debts followed him.
He says: "At that time, I only thought of my family. I didn't have the motivation to pay more than the minimum sum for my debts."
He did not have enough left over to cover the $2,500 minimum payment each month.
Mr Toh took a bank loan of $10,000 to pay off his credit card debts, only to find out that it was not enough and that loan accumulated interest, too.
His credit card debt snowballed to $103,000 and his financial struggles contributed to his divorce in 2012.
Last year, he finally sought help from CCS.
He now follows the Debt Management Programme which will help him clear all his debt in the next three years.
He says he is thankful for the help from CCS. His sisters are also helping by paying for their parents' medical bills.
Mr Toh says: "Without the support from CCS and my family, I don't think I could ever finish paying my debt."
People who need help shouldn't wait, says Ms Tan Huey Min of CCS.
"People with a debt issue have to deal with it as soon as possible before it snowballs into a greater sum every month," she adds.
Debtors must be mindful of economy
Last month, Prime Minister Lee Hsien Loong warned that Singapore must brace itself for a possible downturn.
Ms Tan Huey Min of Credit Counselling Singapore (CCS) says debtors have to be mindful of the economy and how it will affect their income.
"Once they know that their income is affected, they have to take quick actions to solve the problem before it snowballs into a greater debt," she says.
She adds that while some people gamble their way into debt, the top reason for getting into credit card debt is overspending.
Here's how two individuals found themselves on the slippery slope of credit card debt.
SHOPPING
Mr Nor, 57, often used his credit cards when shopping in Malaysia and Indonesia.
Thinking that he was saving money because of the exchange rate, he used his credit cards to pay for almost everything.
He says: "It was so convenient to keep using my credit cards even in supermarkets."
Mr Nor was earning about $2,000 a month as an administrative officer and an extra $1,000 as a part-time driver.
In 2009, he lost his part-time job and had incurred a debt of about $60,000 from using four credit cards and from four bank loans.
Even though he paid the total minimum sum of $2,000 a month for four years, he still owed $60,000 in 2013 because of interest.
He says: "When the bank warned me about paying immediately, I was so afraid because if I didn't pay up, they said they would take me to court."
He has been on CCS' Debt Management Programme (DMP) for about two years now. In four years' time, he will be debt-free.
GAMBLING
By the time he hit rock bottom in 2012, regional product manager Lee, 44, had a debt of $550,000.
His problem was gambling. He said he would often take foreign visitors to the casinos here but eventually developed an interest in gaming himself.
He says: "The boredom I had after work eventually led to me gambling just for fun.
"As my bets got bigger and bigger, using the credit card became very convenient."
To pay off his credit card debts, he took up three bank loans but continued gambling while paying $1,000 to cover the minimum sum for the three cards he had.
He has been on the DMP for two years and has been paying his debt regularly since then.
Learn to manage your debt
A talk on debt management will be held today at Khoo Teck Puat Hospital.
Jointly organised by National Addictions Management Service, Khoo Teck Puat Hospital and North West Community Development Council, the talk is open to the public.
WHAT About National Addictions Awareness Day WHEN Today, 10am to 3pm WHERE Khoo Teck Puat Hospital
For more details, go to www.nams.sg/arc
BY THE NUMBERS
TOTAL NUMBER OF CREDIT CARD HOLDERS IN SINGAPORE
1,611,008
2015
1,388,828
2011
DEBTORS SEEKING HELP
3,308
2015
2,458
2014
1,838
2013
AVERAGE DEBT PER DEBTOR WHO SOUGHT HELP
$99,623.25
2015
$82,940.25
2013
DELINQUENT DEBTORS (PAYING NOTHING OR LESS THAN MINIMUM SUM)
101,493
2015
73,607
2011
REVOLVING DEBTORS (ROLLING DEBT BY COVERING ONLY MINIMUM SUM)
566,966
2015
510,687
2011
BIGGEST DEBT AMOUNT$1,552,000
2015
$1,281,042
2014
$1,707,657
2013
All figures are from Credit Bureau Singapore and Credit Counselling Singapore. Figures for this year are as of September.
Helplines
The Association of Banks in Singapore introduced the Repayment Assistance Scheme (RAS) this year to help borrowers reduce their credit card debt and other unsecured credit loans over time.
The RAS is administered by the Credit Counseling Singapore (CCS), which centralises repayment solutions.
To be eligible, your income must be less than $120,000 per annum and your outstanding unsecured debt must be greater than your annual income before June 1 this year.
RAS: 6996-6006
CCS: 6225-5227
National Addictions Management Service: 1800-6668-668
- wong chee tat :)
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