According to figures from Credit Bureau (Singapore), there were nearly 1.58 million credit card consumers as of October, up from 1.2 million in October 2009.
Around one in three cardholders - or nearly 540,000 people - were not paying their bills in full as of October.
And 3 per cent of cardholders - or around 47,000 people at last count - have debts exceeding a year's salary.
When I came the this part, I was astonished! Having credit card debts amounting to a year's salary is no joke! You could be paying for years and still owe money to the banks!
What the MAS had come up with is to ensure suspension of credit facilities and repayment of the money owed for this group of people. However, I don't think this is going to solve the problem.
What I suggest to MAS is to raise the bar for credit card application:
1) Increase the minimum salary to $50,000 per annum
2) Maximum 2x credit limit of monthly salary (based on monthly salary only, excluding bonus, commission etc)
3) Credit limit is to be shared by all credit cards/credit facilities from all banks. (This will ensure that one cannot max out 1 card and spend using another card from another bank.)
4) Release credit only upon full payment every month
5) Do a credit review yearly (This is to ensure that those who suffered a decrease in income will not get high credit limit based on the previous higher salary and also to ensure that those who temporarily lost their job will rely on their credit cards for their daily expenses.)
The 1 MAJOR problem with most people who cannot make full payment regularly is over-spending. These group of people are spending more than what they can actually afford. Because of the inflated credit limit that ranges from 2x - 4x, these people have the impression that they HAVE the capability to spend! Imagine 10 banks giving you credit cards with limit which is 2x your monthly salary, you will have 20x your monthly salary to spend on! A person earning $3000 per month will have $60,000 at his/her "mercy"! And that should not be the way!
Some of the people I came across had this mentality! They would bust 1 card and jump to the another card! They lived from paycheck to paycheck and paid only the minimum sum to ensure that they can still use their credit cards! And THEIR DEBTS WILL ROLL FASTER than you can say "Merry Christmas"!
Hey people, credit cards are supposed to help us save money by letting us leverage on the discounts, cash rebates, point rewards systems. Not the other way round! DO NOT ever let credit cards be your master!
Come on MAS, if you really want to help people, do consider my suggestion. Curb the issuance of credit cards and curb the problem of "misuse" of credit cards.
Tags: The Straits Times, credit card, debts, rollover, minimum
According
to figures from Credit Bureau (Singapore), there were nearly 1.58
million credit card consumers as of October, up from 1.2 million in
October 2009.
Around one in three cardholders - or nearly 540,000 people - were not paying their bills in full as of October.
And 3 per cent of cardholders - or around 47,000 people at last count - have debts exceeding a year's salary.
- See more at: http://www.straitstimes.com/news/business/more-business-stories/story/10-billion-outstanding-credit-card-loans-christmas-2014121#sthash.ayQAD4t7.dpuf
Around one in three cardholders - or nearly 540,000 people - were not paying their bills in full as of October.
And 3 per cent of cardholders - or around 47,000 people at last count - have debts exceeding a year's salary.
- See more at: http://www.straitstimes.com/news/business/more-business-stories/story/10-billion-outstanding-credit-card-loans-christmas-2014121#sthash.ayQAD4t7.dpuf
According
to figures from Credit Bureau (Singapore), there were nearly 1.58
million credit card consumers as of October, up from 1.2 million in
October 2009.
Around one in three cardholders - or nearly 540,000 people - were not paying their bills in full as of October.
And 3 per cent of cardholders - or around 47,000 people at last count - have debts exceeding a year's salary.
- See more at: http://www.straitstimes.com/news/business/more-business-stories/story/10-billion-outstanding-credit-card-loans-christmas-2014121#sthash.ayQAD4t7.dpuf
Around one in three cardholders - or nearly 540,000 people - were not paying their bills in full as of October.
And 3 per cent of cardholders - or around 47,000 people at last count - have debts exceeding a year's salary.
- See more at: http://www.straitstimes.com/news/business/more-business-stories/story/10-billion-outstanding-credit-card-loans-christmas-2014121#sthash.ayQAD4t7.dpuf
According
to figures from Credit Bureau (Singapore), there were nearly 1.58
million credit card consumers as of October, up from 1.2 million in
October 2009.
Around one in three cardholders - or nearly 540,000 people - were not paying their bills in full as of October.
And 3 per cent of cardholders - or around 47,000 people at last count - have debts exceeding a year's salary.
- See more at: http://www.straitstimes.com/news/business/more-business-stories/story/10-billion-outstanding-credit-card-loans-christmas-2014121#sthash.ayQAD4t7.dpuf
Around one in three cardholders - or nearly 540,000 people - were not paying their bills in full as of October.
And 3 per cent of cardholders - or around 47,000 people at last count - have debts exceeding a year's salary.
- See more at: http://www.straitstimes.com/news/business/more-business-stories/story/10-billion-outstanding-credit-card-loans-christmas-2014121#sthash.ayQAD4t7.dpuf
According
to figures from Credit Bureau (Singapore), there were nearly 1.58
million credit card consumers as of October, up from 1.2 million in
October 2009.
Around one in three cardholders - or nearly 540,000 people - were not paying their bills in full as of October.
And 3 per cent of cardholders - or around 47,000 people at last count - have debts exceeding a year's salary.
- See more at: http://www.straitstimes.com/news/business/more-business-stories/story/10-billion-outstanding-credit-card-loans-christmas-2014121#sthash.ayQAD4t7.dpuf
Around one in three cardholders - or nearly 540,000 people - were not paying their bills in full as of October.
And 3 per cent of cardholders - or around 47,000 people at last count - have debts exceeding a year's salary.
- See more at: http://www.straitstimes.com/news/business/more-business-stories/story/10-billion-outstanding-credit-card-loans-christmas-2014121#sthash.ayQAD4t7.dpuf
According
to figures from Credit Bureau (Singapore), there were nearly 1.58
million credit card consumers as of October, up from 1.2 million in
October 2009.
Around one in three cardholders - or nearly 540,000 people - were not paying their bills in full as of October.
And 3 per cent of cardholders - or around 47,000 people at last count - have debts exceeding a year's salary.
- See more at: http://www.straitstimes.com/news/business/more-business-stories/story/10-billion-outstanding-credit-card-loans-christmas-2014121#sthash.ayQAD4t7.dpuf
Around one in three cardholders - or nearly 540,000 people - were not paying their bills in full as of October.
And 3 per cent of cardholders - or around 47,000 people at last count - have debts exceeding a year's salary.
- See more at: http://www.straitstimes.com/news/business/more-business-stories/story/10-billion-outstanding-credit-card-loans-christmas-2014121#sthash.ayQAD4t7.dpuf
According
to figures from Credit Bureau (Singapore), there were nearly 1.58
million credit card consumers as of October, up from 1.2 million in
October 2009.
Around one in three cardholders - or nearly 540,000 people - were not paying their bills in full as of October.
And 3 per cent of cardholders - or around 47,000 people at last count - have debts exceeding a year's salary.
- See more at: http://www.straitstimes.com/news/business/more-business-stories/story/10-billion-outstanding-credit-card-loans-christmas-2014121#sthash.ayQAD4t7.dpuf
Around one in three cardholders - or nearly 540,000 people - were not paying their bills in full as of October.
And 3 per cent of cardholders - or around 47,000 people at last count - have debts exceeding a year's salary.
- See more at: http://www.straitstimes.com/news/business/more-business-stories/story/10-billion-outstanding-credit-card-loans-christmas-2014121#sthash.ayQAD4t7.dpuf
According
to figures from Credit Bureau (Singapore), there were nearly 1.58
million credit card consumers as of October, up from 1.2 million in
October 2009.
Around one in three cardholders - or nearly 540,000 people - were not paying their bills in full as of October.
And 3 per cent of cardholders - or around 47,000 people at last count - have debts exceeding a year's salary.
- See more at: http://www.straitstimes.com/news/business/more-business-stories/story/10-billion-outstanding-credit-card-loans-christmas-2014121#sthash.ayQAD4t7.dpuf
Around one in three cardholders - or nearly 540,000 people - were not paying their bills in full as of October.
And 3 per cent of cardholders - or around 47,000 people at last count - have debts exceeding a year's salary.
- See more at: http://www.straitstimes.com/news/business/more-business-stories/story/10-billion-outstanding-credit-card-loans-christmas-2014121#sthash.ayQAD4t7.dpuf
According
to figures from Credit Bureau (Singapore), there were nearly 1.58
million credit card consumers as of October, up from 1.2 million in
October 2009.
Around one in three cardholders - or nearly 540,000 people - were not paying their bills in full as of October.
And 3 per cent of cardholders - or around 47,000 people at last count - have debts exceeding a year's salary.
- See more at: http://www.straitstimes.com/news/business/more-business-stories/story/10-billion-outstanding-credit-card-loans-christmas-2014121#sthash.ayQAD4t7.dpuf
Around one in three cardholders - or nearly 540,000 people - were not paying their bills in full as of October.
And 3 per cent of cardholders - or around 47,000 people at last count - have debts exceeding a year's salary.
- See more at: http://www.straitstimes.com/news/business/more-business-stories/story/10-billion-outstanding-credit-card-loans-christmas-2014121#sthash.ayQAD4t7.dpuf
Radha Basu
Radha Basu
No comments:
Post a Comment