Recently, reports showed that credit card rollover balances in Singapore hit a record high. That means more people are unable to fully pay off their bills and are dragging debt month after month.
Here’s the surprising part: Singapore is often perceived as a rich nation, so why is credit card debt such a big issue?
- Ages 45–49 carry the highest unpaid balances, averaging $6,600.
- Ages 40–44 owe around $6,500.
- Even young adults 21–39 are chalking up significant debt.
On average, many Singaporeans are rolling over more than $6,000 in debt. And once you let it roll… the bank becomes like a legal loan shark.
Banks charge 27–30% per year on unpaid balances.
Let's take a simple example:
- Starting debt: $6,000
- Interest rate: 27.8%
- Timeline: 5 years
By the end, that $6,000 snowballs into $20,000. That’s a 240% increase, without you spending a single extra cent.
- The best way to get out of trouble is to stay out of trouble. Don't create debt you can't handle.
- Plug the holes in your pocket. Robert G. Allen, in his books Multiple Streams of Income, taught me this when I was younger. You can make $20,000 a month, but if your pocket has a hole, all that money still flow out.
- I own six credit cards, but I pay them off twice a month without fail.
- My annual card spending exceeds $200,000, but it’s mostly for running my company and ads, not luxury items.
- My home is a fully paid HDB flat, so I carry zero long-term property debt.
And here’s something crucial: Warren Buffett has always warned, never borrow to invest.
Yet some Singaporeans are even using credit cards to trade, or worse, to fund children’s overseas education with bills of $300,000 or more.
If you cannot manage personal debt, it’s almost impossible to succeed in investing. Why? Because investing requires patience, discipline, and long-term planning, the exact opposite of high-interest borrowing.
That’s why I invite you to join my free upcoming webinar. Scroll down to register!
