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Hello there! We're Jing wei, Gladys, Roy, Ibnu and Chandra of MK04 bringing you interesting and controversial news all around the world. Please support us! ;D ~Facebook
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Struggling with credit, debt
 In figures collated by DP Credit Bureau (DPCB), Singaporeans between the age of 21 to 29 years old saw defaults increase from 5.07 per cent in January last year to 7.16 per cent in December.YOUNGER Singaporeans appear to struggle with managing credit and debt, payment data from last year suggests. In figures collated by DP Credit Bureau (DPCB), Singaporeans between the age of 21 to 29 years old saw defaults increase from 5.07 per cent in January last year to 7.16 per cent in December. The rate of bad debts in the same group is at 130 per cent, higher than the average rate across all age groups which is 3.11 per cent, a statement from DPCB said yesterday. Credit card defaults were the most common for all groups with the 21 to 29 year olds leading the pack with a 7.54 per cent default rate. Young married couples in the same segment had even higher rates of defaults on debts than single counterparts, a characteristic unique to only this age group. Across all other age groups, couples had lower rates of default than singles of the same age. 'Unlike their older counterparts, many younger people do not have the financial strength and asset depth to deal with changes in their circumstances,' said DPCB's managing director, Ms Chen Yew Nah. And since young married couples are more prone to defaulting on payments, 'they need to reassess their spending plans and set themselves more realistic budgets that they can stick to', Ms Chen said. The 50 to 59 year olds were found to be the biggest credit spenders, mainly by credit card spending, but the group had a moderate rate of bad debts - 2.19 per cent - lower than the 3.11 per cent average stated earlier. Those older than 69 has the lowest rate of default, as they also spent the least using credit. And where credit is concerned, 'prevention is certainly the better way to go', Ms Chen said, unless consumers genuinely understood how credit tools can be managed carefully.Opinions: I think that teenagers should have a control on the amount of money they spent. If they know that they are not able to pay the bills of their credit cards, they should be more careful and think carefully before they buy something. If they are not responsible, they maybe in debt and find themselves landing in hot soup. They should understand how to manage their financial situation and manage their finances well. I believe these policies that i am going to mention will help to prevent or reduce such cases. Firstly, we would allow these people to set a limit to themselves, they can apply for a cash limit usage per month so that when reach at a specified limit, the card will not be able to use till the end of the month. Lastly, we should educate tertiary students on how to use credit cards wisely and the harms it could bring if they were to misuse it, such as the debts and compounding interest. Reason is because tertiary students are young adolescent who are naive, reckless and relentless on spending on luxury or branded goods, also because they are at the legal age of getting a credit card and soon-to-be employee of a company. Thus teaching them about it will help to make a better choice and help to give them a better understanding of the pros and cons of credit card. Labels: JingWei's |
Thursday, May 20, 2010
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