Photo by RogueSun Media

An article in the Straits Times reported that younger Singaporeans in the 21 to 29-year-old age group have the highest default rate compared to other age groups when it comes to loans.

According to numbers from DP Credit Bureau, 7.54% of people in the 21 to 29-year-old age group default on their credit card loans compared to the average default rate of 3.88% across all age groups. Of those who do not default, I wonder how many people actually roll over the debt (do not pay in full) and incur the excessive interest rates of credit cards.

A credit card can be a very useful tool if used correctly. If you pay all your credit bills on time, you are essentially getting a free short term credit line. Do it for all your bills every month and it would be like a perpetual free credit line. Not to mention the discounts and credit card points you get. Read more…