With the rapidly growing mountain of personal debt in the country, the government of Singapore has been introducing many measures to try and control this problem. For example, a bill was proposed in Parliament earlier this month to limit the amount of loan a person can get from moneylenders. Given the latest statistics from Credit Counselling Singapore, it’s not surprising that the government is taking more steps to rein in this problem as soon as possible. According to CSS, these debtors who have overborrowed typically carry S$100,559 of personal debt on average. This was a shockingly large number given that these borrowers earn only S$3,359 of monthly income on average, about 3% of their debt. For people who have borrowed 30x more than what they earn, how long would it take to repay their loans? We’ve made some simple calculations here to demonstrate why these unsecured loans can be so dangerous, and what …
About The Author
Launched in 2016, Seedly helps users make smarter financial decisions with its budgeting app which allows its 40,000 users to sync up their financial accounts and better manage their cash-flow. Last year, we introduced a new community feature which allows users to crowdsource knowledge from peers before making a financial decision.
April 8, 2018
September 20, 2017
November 16, 2013