The impulse to overspend with credit cards can happen to anyone. I am no angel and do splurge on holidays (that were over my budget). We all know, and I hope everyone knows, charging more to your credit card than you can pay off when your bills arrive can lead to huge interest charges (plus late fee charges etc.).

I remember reading an article 2 years back in the local papers regarding Singaporeans overspending and being in debts. In the same article, it mentioned that the Monetary Authority of Singapore estimated that 3 per cent of unsecured credit borrowers’ debt exceeded their annual income. The paper also estimated 43,000 people had debts of more than a year’s salary.

43,000 might seem a small number in a country with 5 million people. And you wonder how did these people reach that state? So it came as a shock to …