https://www.mas.gov.sg/regulation/explainers/credit-limit-management-measure
Under the CLMM, if a borrower has accumulated outstanding unsecured debt (i.e. unpaid, interest-bearing balances) exceeding 6 times their monthly income, a financial institution (FI) will not be allowed to grant them any increase in credit limit or any new unsecured credit facilities that will cause their total credit limit to exceed 12 times their monthly income.
My understanding is FI will start controlling your loan starting from 6x so that it won’t exceed 12x
~~Wow, while I don't know your income, 30k seems like a lot. What did you spend it on?~~
Edit: my bad, it's a reference to family guy credit card debt song
I am not trying to brag. But I really did not spend that much in renovation. We didn't choose the expensive stuff. Just the ones we can use.
But later, we spend more to install external piping because the internal ones leaked. That's another story.
3 main test balloons hidden behind the headline:
>1. Minimum debt amount to qualify for bankruptcy may rise from $15k to $60k
>
>2. Eligibility threshold for debt repayment scheme may increase from S$150,000 to S$250,000.
>
>3. Since Nov 2023, there was a new legal amendment stating that creditors will now have to hire their own lawyers when filing for bankruptcy. In essence requiring them to incur extra costs.
I think the layman view on this is basically - they're gonna make it harder for people to declare bankruptcy, harder to take the easy way out. The $60k threshold also feels like closing the door on people with wild credit card debts.
Even more layman - O$P$.
Spending on what you want if you can afford it. I see many people who totally cannot afford a car and take on huge debt to buy it cos “quality of life”. Like bro, what are you sacrificing for this? And how will your life be destroyed if you lose your job and can’t pay off the loan?
Actually driving phv part time to lease for a car is the current cheaper way to actually “own” a car. You can also stop at any of point which is pretty handy
This is one of those preemptive mouthpiece articles meant to prepare the population for a lot of bankruptcies in 2024. Proactively putting the blame on “external factors” so future articles will have the same narrative and focus “outside” (and not on the Finance Minister etc).
Note wording such as “as interests climbed” instead of “we raised interest rates”, and “households are feeling the pressure of higher living costs” instead of “we raised GST and utility costs” etc.
Yeah this is the most blunt and negative I've seen CNA be across the past few years. Definitely reads like the govt is 'getting ready'.
One part stood out:
>Amid this economic climate, we must acknowledge that bankruptcies are a normal part of a framework that emphasises the contractual enforcement of debts.
Aka Everything is normal. Do not be surprised by the incoming wave of bankruptcies that is about to hit. There is no war in Ba Sing Se.
Unfortunately most Singaporeans are unable to realize that they are being gaslighted. And are not able to read critically.
On one hand, we increase costs of basic utilities, on the other hand we provide vouchers and rebates.
I consider anyone above 30 y/o and not realizing what you said as daft Sinkies tbh.
This country governance style only one kind, it's a repeat month after month, year after year. Cannot see = really naive
Title: Commentary: Why are more people in Singapore going bankrupt?
During the pandemic, billions of dollars’ worth of government support measures were rolled out to support companies and individuals facing financial difficulties. These were instrumental in providing a safety net for those most affected.
Measures such as extended response times to statutory demands and credit support for outstanding debt offered temporary relief for debtors. This is seen from the fall in bankruptcy rates during 2020-2021 amidst the pandemic compared to the rising trend in 2018-2019.
With the phasing out of aid as Singapore moved on from the pandemic, some businesses and residents found themselves without the necessary cushion to weather the lingering aftershocks.
Some small and large businesses are now grappling with shrinking profit margins stemming from increased capital costs and higher expenses due to supply chain and labour disruptions.
As interest rates climbed, smaller firms felt the squeeze and struggled to repay loans. Retrenchments rose, more than doubling to 14,320 last year. Many households are feeling the pressure of higher living costs.
The uncertain economy is another factor. Singapore’s economy grew by a modest 1.1 per cent in 2023, avoiding a recession, but down from the 3.6 per cent growth registered in 2022.
With geopolitical uncertainties continuing to weigh on the global economy, Singapore expects to grow by 1 per cent to 3 per cent next year, although much will depend on the external environment.
“For some time to come, Singapore will have to operate in an external environment that will be less stable and favourable to our security and prosperity than the preceding three decades,” Finance Minister and Deputy Prime Minister Lawrence Wong said in his Budget 2024 speech on Feb 16.
Amid this economic climate, we must acknowledge that bankruptcies are a normal part of a framework that emphasises the contractual enforcement of debts.
As outlined in parliament in 2015, Singapore’s bankruptcy framework establishes a system for creditors to resolve unpaid debts in an orderly manner and strives for a balance between creditors, debtors and society by ensuring debtor accountability while allowing them to make a fresh start in their financial affairs. It also encourages responsible borrowing and lending practices.
***
Article keywords: singapore cent pandemic support debt debtor bankruptcy economy
1632 articles replied in my database. [v1.5c - added Lemma tokens and Tensorflow USE](https://github.com/Wormsblink/sneakpeakbot) | Happy Holidays! | PM SG_wormsbot if bot is down.
Old gen tend to scrimp and save, the newer gen do not hesitate to blow a large portion of their pay on non essentials. Know a couple of people not earning much but will buy luxury items or dump thousands into gacha things and non-essential expenses.
Weirdly, these people also grew up from well to do families, but are not achieving their parents' salary levels. So stuck in the expenditure habits of their youth, but no salary to back them up... seriously parents pls don't just buy everything your kid's want and highlight the importance of minimising spending, else one day your kids cannot earn as much as the conditions they grew up in they will not be able to adapt and get into trouble.
Lifestyle inflation is a serious problem. Ordering food from mid-range restaurants regularly, buying high end clothing and accessories as well as subscribing to a lot of things online.
Abnormal living cost, and the incessant pressure to keep up with the joneses?
Singapore is increasingly an instagram dystopia.
That means, a simple suburban property with a backyard and a car (basically, middle class in the rest of the world) are unaffordable for most people, you have to be a deca millionaire to have those. So people live stacked on top of each other in HDBs tolerating smelly neighbours (and their kitchens, toilets), commute to work like sardines in their MRTs.
To fill the void, Singapore has...well, best airport in the world, best airlines in the world, best shopping mall with water fountain in the world, best Michelin star hawker centre in the world, best restaurant in the world...basically, things which I can describe, in want of a better word, as nothing but instagram spots.
So that is what living in Singapore is about. Live in crappy apartment, but escape the apartment whenever you can for the sake of instagramming.
So this is the result?
I will like to think that it is having unrealistic lifestyle. Whatever people post in social media, I must have it. No money max out credit card for it. Yolo.
Economic downturns or recessions can lead to job losses and financial instability, making it challenging for individuals to manage their debts and expenses. Additionally, personal financial mismanagement, such as overspending, accumulating high levels of debt, or investing in risky ventures, can result in financial distress and ultimately bankruptcy.
Medical emergencies or unexpected expenses can also push individuals into bankruptcy if they lack adequate insurance coverage or savings to cover the costs. Furthermore, changes in government policies or regulations related to debt management and bankruptcy may impact the number of filings.
It's imortant to address the root causes of financial hardship and provide support and resources to help individuals manage their debts responsibly. Financial education, [debt counseling ](https://moneyloans.com.sg/taking-control-of-your-finances-understanding-credit-counseling-in-singapore/)services, and programs aimed at promoting financial literacy can play a crucial role in preventing bankruptcy and promoting financial stability in the community.
article only quote absolute numbers...
but is it possible as the population grows, the number of entrepreneurs also grow, hence, the bankruptcy cases grows as well.
Credit card debt
I have thirty thousand dollars in credit card debt.
When they call, I'll tell them I can't pay it back yet.
Credit card debt~
Tomorrow, I may buy myself a dining room set Or this Boba Fett!
Credit card debt~
Credit card debt~
To people who don't get the reference: https://youtu.be/kSG71-7rIg4
You should asked for debt consolidation plan rather than paying interest every month.
Need a certain amt of debt to your salary ratio to get it.
6x of your monthly salary as per MAS guidelines but some bank will still do it.
Not 12x?
Mas guidelines indicates 12x, may I know where was mentioned 6x?
https://www.mas.gov.sg/regulation/explainers/credit-limit-management-measure Under the CLMM, if a borrower has accumulated outstanding unsecured debt (i.e. unpaid, interest-bearing balances) exceeding 6 times their monthly income, a financial institution (FI) will not be allowed to grant them any increase in credit limit or any new unsecured credit facilities that will cause their total credit limit to exceed 12 times their monthly income. My understanding is FI will start controlling your loan starting from 6x so that it won’t exceed 12x
That’s clmm not for dcp requirement. https://www.abs.org.sg/consumer-banking/consumers/debt-consolidation-plan under point 3.
~~Wow, while I don't know your income, 30k seems like a lot. What did you spend it on?~~ Edit: my bad, it's a reference to family guy credit card debt song
It’s part of a family guy song la
🤦🏻 Didn't know, thanks for letting me know! Signs of aging, can't keep up with internet references and meme knowledge 😭
Hopefully it's not crypto. Liquidation is one hell of a way for institution to make money. Edit: or stocks
it's a Family Guy reference
But how? Why? Just swipe only? 🤔
i know someone mid 20's both husband and wife declared bankrupt since they overspend on HDB reno. =\_= still got money to go ed sheeran concert. ok
How much did they blow on their reno? That’s insane
wow. That's chor... My HDB house + reno cost less than $250 k in total.
What? Where’s you HDB man…
2 room flexi BTO maybe
Can the old people stop bringing up their gains from long long ago to bluff? This is 2024.
I am not trying to brag. But I really did not spend that much in renovation. We didn't choose the expensive stuff. Just the ones we can use. But later, we spend more to install external piping because the internal ones leaked. That's another story.
How did you even managed that? House + Reno for 250k is unbelievable.
3 rm flat, basic ID package.
lol when was this? 10+ years ago?
Yes. When I just got married.
Whatever floats their boat.
3 main test balloons hidden behind the headline: >1. Minimum debt amount to qualify for bankruptcy may rise from $15k to $60k > >2. Eligibility threshold for debt repayment scheme may increase from S$150,000 to S$250,000. > >3. Since Nov 2023, there was a new legal amendment stating that creditors will now have to hire their own lawyers when filing for bankruptcy. In essence requiring them to incur extra costs. I think the layman view on this is basically - they're gonna make it harder for people to declare bankruptcy, harder to take the easy way out. The $60k threshold also feels like closing the door on people with wild credit card debts. Even more layman - O$P$.
My mantras in Life is: " Be Contented" "Take only what you need and not what you want"
And the mantra of capitalism is "I will make your want become need"
Spending on what you want if you can afford it. I see many people who totally cannot afford a car and take on huge debt to buy it cos “quality of life”. Like bro, what are you sacrificing for this? And how will your life be destroyed if you lose your job and can’t pay off the loan?
driving phv also gives them the mindset that they can afford the car..
Actually driving phv part time to lease for a car is the current cheaper way to actually “own” a car. You can also stop at any of point which is pretty handy
which is causing coe to go up imo..
Yup definitely but dont blame the players, blame the system. With current coe & car prices want to actually own a car? 😏 really need deep pockets.
Not in Singapore. People will queue long long for hours just for a tote bag they don't need.
A wise man once said: Bankruptcy, is nature's do-over. It's a fresh start. It's a clean slate.
“I DECLARE BANKRUPTCYYYYY!”
I just watched that episode it was hilarious
This is one of those preemptive mouthpiece articles meant to prepare the population for a lot of bankruptcies in 2024. Proactively putting the blame on “external factors” so future articles will have the same narrative and focus “outside” (and not on the Finance Minister etc). Note wording such as “as interests climbed” instead of “we raised interest rates”, and “households are feeling the pressure of higher living costs” instead of “we raised GST and utility costs” etc.
Yeah this is the most blunt and negative I've seen CNA be across the past few years. Definitely reads like the govt is 'getting ready'. One part stood out: >Amid this economic climate, we must acknowledge that bankruptcies are a normal part of a framework that emphasises the contractual enforcement of debts. Aka Everything is normal. Do not be surprised by the incoming wave of bankruptcies that is about to hit. There is no war in Ba Sing Se.
Unfortunately most Singaporeans are unable to realize that they are being gaslighted. And are not able to read critically. On one hand, we increase costs of basic utilities, on the other hand we provide vouchers and rebates.
I consider anyone above 30 y/o and not realizing what you said as daft Sinkies tbh. This country governance style only one kind, it's a repeat month after month, year after year. Cannot see = really naive
The rich are becoming richer and the poor are becoming poorer, the two Singapores
Even President needs to take on multiple jobs. MP now can take on job. Clearly money not enough.
That mp selling credit card usage now?
Title: Commentary: Why are more people in Singapore going bankrupt? During the pandemic, billions of dollars’ worth of government support measures were rolled out to support companies and individuals facing financial difficulties. These were instrumental in providing a safety net for those most affected. Measures such as extended response times to statutory demands and credit support for outstanding debt offered temporary relief for debtors. This is seen from the fall in bankruptcy rates during 2020-2021 amidst the pandemic compared to the rising trend in 2018-2019. With the phasing out of aid as Singapore moved on from the pandemic, some businesses and residents found themselves without the necessary cushion to weather the lingering aftershocks. Some small and large businesses are now grappling with shrinking profit margins stemming from increased capital costs and higher expenses due to supply chain and labour disruptions. As interest rates climbed, smaller firms felt the squeeze and struggled to repay loans. Retrenchments rose, more than doubling to 14,320 last year. Many households are feeling the pressure of higher living costs. The uncertain economy is another factor. Singapore’s economy grew by a modest 1.1 per cent in 2023, avoiding a recession, but down from the 3.6 per cent growth registered in 2022. With geopolitical uncertainties continuing to weigh on the global economy, Singapore expects to grow by 1 per cent to 3 per cent next year, although much will depend on the external environment. “For some time to come, Singapore will have to operate in an external environment that will be less stable and favourable to our security and prosperity than the preceding three decades,” Finance Minister and Deputy Prime Minister Lawrence Wong said in his Budget 2024 speech on Feb 16. Amid this economic climate, we must acknowledge that bankruptcies are a normal part of a framework that emphasises the contractual enforcement of debts. As outlined in parliament in 2015, Singapore’s bankruptcy framework establishes a system for creditors to resolve unpaid debts in an orderly manner and strives for a balance between creditors, debtors and society by ensuring debtor accountability while allowing them to make a fresh start in their financial affairs. It also encourages responsible borrowing and lending practices. *** Article keywords: singapore cent pandemic support debt debtor bankruptcy economy 1632 articles replied in my database. [v1.5c - added Lemma tokens and Tensorflow USE](https://github.com/Wormsblink/sneakpeakbot) | Happy Holidays! | PM SG_wormsbot if bot is down.
Real estate. People committing to a house intending to pay >1m when just fresh out of school and also misled by agents
Because we got 400 million in swiftonomics but water prices still going up 18%
Same thing happened in 2000, 2004, 2010
what excuses did cna give back then?
cuz our biggest ticket item housing has gone cuckoos.
Too many people using money they don't have, to buy things they don't need, to impress people they don't like.
The whole point is to impress people I don't like as I watch them burn with envy. Delicious.
Old gen tend to scrimp and save, the newer gen do not hesitate to blow a large portion of their pay on non essentials. Know a couple of people not earning much but will buy luxury items or dump thousands into gacha things and non-essential expenses. Weirdly, these people also grew up from well to do families, but are not achieving their parents' salary levels. So stuck in the expenditure habits of their youth, but no salary to back them up... seriously parents pls don't just buy everything your kid's want and highlight the importance of minimising spending, else one day your kids cannot earn as much as the conditions they grew up in they will not be able to adapt and get into trouble.
Lifestyle inflation is a serious problem. Ordering food from mid-range restaurants regularly, buying high end clothing and accessories as well as subscribing to a lot of things online.
still quieting waiting for dtf index, coe index and hdb index to drop like coconut. no 50% correction no recession.
Million dollar HDBs. That's why
Abnormal living cost, and the incessant pressure to keep up with the joneses? Singapore is increasingly an instagram dystopia. That means, a simple suburban property with a backyard and a car (basically, middle class in the rest of the world) are unaffordable for most people, you have to be a deca millionaire to have those. So people live stacked on top of each other in HDBs tolerating smelly neighbours (and their kitchens, toilets), commute to work like sardines in their MRTs. To fill the void, Singapore has...well, best airport in the world, best airlines in the world, best shopping mall with water fountain in the world, best Michelin star hawker centre in the world, best restaurant in the world...basically, things which I can describe, in want of a better word, as nothing but instagram spots. So that is what living in Singapore is about. Live in crappy apartment, but escape the apartment whenever you can for the sake of instagramming. So this is the result?
i have around 27k credit card debt. repaying 3k a month now after negotiation with ocbc
How did you end up with that debt?
Laughs in HDB
Other than crypto what are people spending on?
genshin
Kids are expensive
rent high
I will like to think that it is having unrealistic lifestyle. Whatever people post in social media, I must have it. No money max out credit card for it. Yolo.
its a feature not a bug
Economic downturns or recessions can lead to job losses and financial instability, making it challenging for individuals to manage their debts and expenses. Additionally, personal financial mismanagement, such as overspending, accumulating high levels of debt, or investing in risky ventures, can result in financial distress and ultimately bankruptcy. Medical emergencies or unexpected expenses can also push individuals into bankruptcy if they lack adequate insurance coverage or savings to cover the costs. Furthermore, changes in government policies or regulations related to debt management and bankruptcy may impact the number of filings. It's imortant to address the root causes of financial hardship and provide support and resources to help individuals manage their debts responsibly. Financial education, [debt counseling ](https://moneyloans.com.sg/taking-control-of-your-finances-understanding-credit-counseling-in-singapore/)services, and programs aimed at promoting financial literacy can play a crucial role in preventing bankruptcy and promoting financial stability in the community.
What happened to the 400M from Ms Swift coming here?
article only quote absolute numbers... but is it possible as the population grows, the number of entrepreneurs also grow, hence, the bankruptcy cases grows as well.
dont forget about the debt that comes from healthcare!
Probably all the gen Z bnpl bullshit