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 income. Show all posts
Showing posts with label income. Show all posts
Monday, June 27, 2016
Wednesday, March 16, 2016
Bloggers taken by surprise by IRAS letter on taxable income
Bloggers taken by surprise by IRAS letter on taxable income
938LIVE reports: The memo received by bloggers states that all non-monetary benefits “may be taxable and must be declared”. One blogger said it was the first time she received such a letter.
By Lee Gim Siong, 938LIVE and Justin Ong
Posted 15 Mar 2016 22:07 Updated 15 Mar 2016 22:56
SINGAPORE: Some members of Singapore’s blogging community have expressed surprise at a letter they have received from the Inland Revenue Authority of Singapore (IRAS) clarifying income components - including products or services received via their websites - which need to be declared as part of their annual Income Tax Return.
938LIVE has seen pictures of the letter in question. The memo states that all non-monetary benefits, including sponsorship of products or services received in return for writing or reviewing the sponsors’ products “may be taxable and must be declared”.
Prominent blogger Wendy Cheng, or Xiaxue, told 938LIVE this is the first time she has received such a letter from IRAS.
Ms Cheng said while she is aware that income generated from her website is subjected to tax, it is “difficult” to declare certain benefits-in-kind.
“If someone sends me a lipstick, am I supposed to go find out how much it costs and declare it? Other things like, for example, some fans give me something that’s handmade, how do I put a value on that?”
“Either that or I have to send it back to the company, but that’s very nasty. It’s like saying: 'I don’t like your product'; so it doesn’t make sense to me,” she added.
The IRAS letter sent to bloggers
Kenneth Lee, who blogs on www.5meanders.com wrote: “I think it’s sad, and a little funny, that we’ve come to a point in our country’s storied existence when a channel of expression is taxable.”
Local blogger Alvin Lim, who owns alvinology.com and asia361.com, told Channel NewsAsia the move by IRAS seemed “stringent and rather extreme”.
“If this is really true, it will kill the whole blogging scene. Who will go for food tastings now? IRAS also has to be fair to bloggers - most of us are one-man shows with no resources to do these things,” he said, adding that he presently files taxes under a registered company.
Mr Lim also noted that it would be “double standards” if the same were not applied to media companies. “Do journalists file taxes for media gifts, food tastings, family trips or media junkets?” he asked.
938LIVE understands that IRAS sent the letter as part of its regular engagement with the self-employed and is not meant to target or clamp down on bloggers.
Social media marketing firm Gushcloud said it is aware that the letter has been sent to bloggers under its management, adding that it regularly holds workshops and 1-on-1 meetings to answer their questions on the filing of their taxes.
A food blogger who declined to be identified said he has always been aware of the need to declare the benefits he received through his blog.
More information on what bloggers need to declare can be found here.
- 938LIVE/ek
- wong chee tat :)
938LIVE reports: The memo received by bloggers states that all non-monetary benefits “may be taxable and must be declared”. One blogger said it was the first time she received such a letter.
By Lee Gim Siong, 938LIVE and Justin Ong
Posted 15 Mar 2016 22:07 Updated 15 Mar 2016 22:56
SINGAPORE: Some members of Singapore’s blogging community have expressed surprise at a letter they have received from the Inland Revenue Authority of Singapore (IRAS) clarifying income components - including products or services received via their websites - which need to be declared as part of their annual Income Tax Return.
938LIVE has seen pictures of the letter in question. The memo states that all non-monetary benefits, including sponsorship of products or services received in return for writing or reviewing the sponsors’ products “may be taxable and must be declared”.
Prominent blogger Wendy Cheng, or Xiaxue, told 938LIVE this is the first time she has received such a letter from IRAS.
Ms Cheng said while she is aware that income generated from her website is subjected to tax, it is “difficult” to declare certain benefits-in-kind.
“If someone sends me a lipstick, am I supposed to go find out how much it costs and declare it? Other things like, for example, some fans give me something that’s handmade, how do I put a value on that?”
“Either that or I have to send it back to the company, but that’s very nasty. It’s like saying: 'I don’t like your product'; so it doesn’t make sense to me,” she added.
The IRAS letter sent to bloggers
Kenneth Lee, who blogs on www.5meanders.com wrote: “I think it’s sad, and a little funny, that we’ve come to a point in our country’s storied existence when a channel of expression is taxable.”
Local blogger Alvin Lim, who owns alvinology.com and asia361.com, told Channel NewsAsia the move by IRAS seemed “stringent and rather extreme”.
“If this is really true, it will kill the whole blogging scene. Who will go for food tastings now? IRAS also has to be fair to bloggers - most of us are one-man shows with no resources to do these things,” he said, adding that he presently files taxes under a registered company.
Mr Lim also noted that it would be “double standards” if the same were not applied to media companies. “Do journalists file taxes for media gifts, food tastings, family trips or media junkets?” he asked.
938LIVE understands that IRAS sent the letter as part of its regular engagement with the self-employed and is not meant to target or clamp down on bloggers.
Social media marketing firm Gushcloud said it is aware that the letter has been sent to bloggers under its management, adding that it regularly holds workshops and 1-on-1 meetings to answer their questions on the filing of their taxes.
A food blogger who declined to be identified said he has always been aware of the need to declare the benefits he received through his blog.
More information on what bloggers need to declare can be found here.
- 938LIVE/ek
- wong chee tat :)
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