62 thousand can't even.make minimum payment. So after starting
the credit bureau to allow banks to monitor individual borrower more people than ever fall into
financial.trouble and bankruptxy.
Those in unsecured credit dept in banks told.me
the best customers are trapped customers those who.
pay minimum on their debt and take almost forever to clear their
to pay off their debts like that the bank can maximise interest earned from these pple. The banks are trying to grow this segment as much.as possible ....that's why they call agressively to ask you to take low interest debt to spend once you are trapped they will increase the interest to suck as much profit from you.
One of the big mistake of MAS is to allow the banks to share information on borrowers
for purposes of lending. On the surface, it was suppose to lower the cost of loans but
banks use it to monitor those with many unsecured account once you use too much they will jack up the interesr rate to extract as much interest from you as possible. trapping trapping the victim.
Having information about your assets like HDB , banks know they can seize that
even though the loan are unsecured the is implicit security.
The Singapore govt is short sighted and naive when it deregulated the banking
sector to allow Western lending practices to spread here...worse still our bankruptcy protection laws are the worst in the developed world abd allow creditors to take your home, bed and furniture even your childrens toys
should you get into financial trouble...that's why some borrow from loan.sharks because they are illegal they cannot forcibly take you home and you can try to.run. When your laws are so bad I is no surprise
loansharks thrive.
Unsecured loan should be just that. The lender should not have any claim to your property which is not used for
security otherwise it is a moral hazard. They can make claims on
income becauae the loan is based pn.that.
Our leaders have acted unwisely and: irresponsibly to allow weatern style lending to spread here when it is already know to cause numerous problems already resulting from this.type.of practices in western countries
allowing these bankers to come. here and use their old tricks on Singaporeanss...the PAP has failed the people yet
again.
---------------------
More finding it hard to pay credit card debt Latest figures come on back of tougher rules on credit Published on Sep 24, 2013, Straits Times By Mok Fei Fei
MORE people are now struggling to pay off their credit card bills, new figures show, as if underlining the need for the tough new rules governing credit card debt.
q
Data released by the Credit Bureau Singapore (CBS) yesterday also show that as well as falling behind on payments, they are now owing more.
As of July, there were 62,830 unsecured credit customers who had not made a minimum payment in two months - a striking 12.7 per cent more than the 55,726 people in that category last year.
Unsecured credit includes credit cards, overdrafts and personal loans that are not backed by collateral.
The total amount on unsecured cards, overdrafts and personal loans that are two months or more past due rose as well. It stood at $230.7 million in July, up from $212.5 million last year and $183.8 million in 2011.
Consumers now rack up an average monthly debt of $8,030 on credit cards and overdrafts - up from $7,859 last year and $7,349 in 2011.
The steady rise in red ink is likely why the Monetary Authority of Singapore launched new rules on unsecured credit loans earlier this month, said CIMB regional economist Song Seng Wun.
"After the binge, comes the belt tightening. When the bad loans are rising against the backdrop of an unexpected external shock or the risk of interest rates going up, the possibility of people on the margin and defaulting is there," said Mr Song.
The new rules include barring financial institutions from giving out more loans to people whose unsecured debt totals more than 12 months of their income for 90 days or more.
CBS research also found that people aged 35 to 39 had the highest percentage of delinquency and were most likely to roll over credit card debts compared with those in other age groups.
CBS executive director William Lim said that people in that age bracket could have major financial commitments like having their first house or child.
"For most of us, in that age range, your level of financial responsibility is probably at its highest and your financial resources may not be at their peak. You're probably at your peak when you're in your 40s for most people," said Mr Lim.
However, there were also some encouraging figures from CBS.
One showed that the overall delinquency rate dipped slightly, from 6.5 per cent in March last year to 6.4 per cent in March this year.
This means that the proportion of people who failed to make repayments for credit card billings, and home, motor and study loans fell marginally.
The average credit score of consumers nationwide has also risen - from 1,897 in March last year to 1,904 this year out of a maximum score of 2000.
The higher the score, the lower the risk of the consumer falling into default.
Mr Lim said credit scores have likely improved on the back of more responsible behaviour.
He said: "Consumers who overspend and run up debt usually try to make positive changes to how they manage credit and get their finances in order."
Mr Philip Loh, director of financial services at Great Eastern Life, added: "The job market is still stable and people can find avenues to roll over their debt because of the low interest rate environment, so their credit scores are not
the credit bureau to allow banks to monitor individual borrower more people than ever fall into
financial.trouble and bankruptxy.
Those in unsecured credit dept in banks told.me
the best customers are trapped customers those who.
pay minimum on their debt and take almost forever to clear their
to pay off their debts like that the bank can maximise interest earned from these pple. The banks are trying to grow this segment as much.as possible ....that's why they call agressively to ask you to take low interest debt to spend once you are trapped they will increase the interest to suck as much profit from you.
One of the big mistake of MAS is to allow the banks to share information on borrowers
for purposes of lending. On the surface, it was suppose to lower the cost of loans but
banks use it to monitor those with many unsecured account once you use too much they will jack up the interesr rate to extract as much interest from you as possible. trapping trapping the victim.
Having information about your assets like HDB , banks know they can seize that
even though the loan are unsecured the is implicit security.
The Singapore govt is short sighted and naive when it deregulated the banking
sector to allow Western lending practices to spread here...worse still our bankruptcy protection laws are the worst in the developed world abd allow creditors to take your home, bed and furniture even your childrens toys
should you get into financial trouble...that's why some borrow from loan.sharks because they are illegal they cannot forcibly take you home and you can try to.run. When your laws are so bad I is no surprise
loansharks thrive.
Unsecured loan should be just that. The lender should not have any claim to your property which is not used for
security otherwise it is a moral hazard. They can make claims on
income becauae the loan is based pn.that.
Our leaders have acted unwisely and: irresponsibly to allow weatern style lending to spread here when it is already know to cause numerous problems already resulting from this.type.of practices in western countries
allowing these bankers to come. here and use their old tricks on Singaporeanss...the PAP has failed the people yet
again.
---------------------
More finding it hard to pay credit card debt Latest figures come on back of tougher rules on credit Published on Sep 24, 2013, Straits Times By Mok Fei Fei
MORE people are now struggling to pay off their credit card bills, new figures show, as if underlining the need for the tough new rules governing credit card debt.
q
Data released by the Credit Bureau Singapore (CBS) yesterday also show that as well as falling behind on payments, they are now owing more.
As of July, there were 62,830 unsecured credit customers who had not made a minimum payment in two months - a striking 12.7 per cent more than the 55,726 people in that category last year.
Unsecured credit includes credit cards, overdrafts and personal loans that are not backed by collateral.
The total amount on unsecured cards, overdrafts and personal loans that are two months or more past due rose as well. It stood at $230.7 million in July, up from $212.5 million last year and $183.8 million in 2011.
Consumers now rack up an average monthly debt of $8,030 on credit cards and overdrafts - up from $7,859 last year and $7,349 in 2011.
The steady rise in red ink is likely why the Monetary Authority of Singapore launched new rules on unsecured credit loans earlier this month, said CIMB regional economist Song Seng Wun.
"After the binge, comes the belt tightening. When the bad loans are rising against the backdrop of an unexpected external shock or the risk of interest rates going up, the possibility of people on the margin and defaulting is there," said Mr Song.
The new rules include barring financial institutions from giving out more loans to people whose unsecured debt totals more than 12 months of their income for 90 days or more.
CBS research also found that people aged 35 to 39 had the highest percentage of delinquency and were most likely to roll over credit card debts compared with those in other age groups.
CBS executive director William Lim said that people in that age bracket could have major financial commitments like having their first house or child.
"For most of us, in that age range, your level of financial responsibility is probably at its highest and your financial resources may not be at their peak. You're probably at your peak when you're in your 40s for most people," said Mr Lim.
However, there were also some encouraging figures from CBS.
One showed that the overall delinquency rate dipped slightly, from 6.5 per cent in March last year to 6.4 per cent in March this year.
This means that the proportion of people who failed to make repayments for credit card billings, and home, motor and study loans fell marginally.
The average credit score of consumers nationwide has also risen - from 1,897 in March last year to 1,904 this year out of a maximum score of 2000.
The higher the score, the lower the risk of the consumer falling into default.
Mr Lim said credit scores have likely improved on the back of more responsible behaviour.
He said: "Consumers who overspend and run up debt usually try to make positive changes to how they manage credit and get their finances in order."
Mr Philip Loh, director of financial services at Great Eastern Life, added: "The job market is still stable and people can find avenues to roll over their debt because of the low interest rate environment, so their credit scores are not
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