Outstanding loan balances for Singaporean households have increased steadily over the past 20 years, most recently reaching almost 70% of household assets. This means that Singapore’s residents are more saddled with home, education, car and other loan debt than ever before. How can individuals effectively manage their current debt and be savvy about taking on new debt? We looked to research by behavioural economists to provide strategies for borrowers seeking to get their personal debt under control.
Pressure from your friends and colleagues can be very influential. For example, it can be easy to be convinced into having another round of drinks with your friends or to work overtime if your coworkers are staying late. A study in the United States found that participants in a debt reduction program that included peer support and reminders were more likely to reduce their debt in one