Forum: Take more effective measures to curb rising credit card debt
Sign up now: Get ST's newsletters delivered to your inbox
DeeperDive is a beta AI feature. Refer to full articles for the facts.
I read the article “Singaporeans fall further into credit card debt as rollover balances hit record high” (Jan 4) with concern.
Data from the Monetary Authority of Singapore (MAS) showed that credit card rollover balances hit a high of $7.9 billion in the third quarter of 2024.
The data seems to reflect the inability of Singaporeans to keep up with repayments as they spend beyond their means. I believe that with the rising popularity of “buy now, pay later” (BNPL) schemes, many Singaporeans are encouraged to buy first and think later about affordability.
Many such BNPL providers tie repayment instalments to their clients’ credit cards. This could also have contributed to the increase in total card billings.
While delinquency rates may appear normal, this could be because account holders were encouraged to sign up for another lengthy period of loan repayment at smaller amounts.
To curb insouciant spending habits, MAS could further tighten credit card borrowing limits and mandate more frequent know-your-client reviews so that banks stay updated on changes in their customers’ financial circumstances.
The timeless advice to spend within one’s means remains the best defence against spiralling credit card debt.
Foo Sing Kheng
