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Credit Counselling S'pore
By Pearl Forss, Channel NewsAsia
SINGAPORE : A new support group has been set up in the business
district for professionals facing severe credit problems, after
counsellors find that more young professionals are slipping into a
life of debt.
Well-educated, a string of credit cards in their wallets, and often
living a lifestyle beyond their means - non-profit organisation
Credit Counselling Singapore says these are the main
characteristics of many of the 1,100 people they are currently
counselling for debt problems.
Some 600 of them have signed up for debt management programmes to
structure their repayments to the banks.
In August 2004, Edward Job started a help centre in Geylang for
those with gambling debts and loan shark problems.
Back then, most who turned up at the One Hope Centre were low and
middle income debtors.
But in recent months, high income young debtors in trouble with
banks have started turning up too.
So he started another support group in the financial district in
January this year to help this group.
And so far, 40 to 50 people are attending the support group
meetings every Thursday.
Said Edward Job, founder of One Hope Centre: "Most of them are
living a wrong lifestyle. Sometimes they buy car without thinking
whether they are able to pay tomorrow.
"All of a sudden, they find themselves having a pay cut or they may
lose their jobs. And they can't pay their debts incurred on hire
purchase companies. Their car may be repossessed and if being sold,
they have to pay the difference."
In the last four years, about 500 young people between the ages of
30 and 40 were made bankrupt each year, due mainly to credit card
debt.
Credit counsellors call this group of debtors the "new poor" in
Singapore. They earn more than the bottom 20% of the population but
after deducting their loan repayments, their remaining disposable
income sometimes puts them in dire situations.
For an in-depth look at this issue, catch "Generation Debt," the
next episode of Get Rea! on Wednesday January 18 at 8.30pm on
Channel NewsAsia.
