Singaporeans struggle to handle debt repayment

Financial advisors in Singapore are making an effort to educate people as a rising number of Singaporeans take on more debt than they can handle.

More from OMY: Majority of Singaporean youth think financial advice-seeking is important

The ease of access to loans and credit facilities has triggered worries among advisors who fear that not all individuals may be equipped to handle the increasing debt burden.

As loan accessibility becomes more streamlined, individuals are obtaining loans with minimal requirements, resulting in a surge in borrowing. What’s particularly troubling for advisors is the trend of longer loan tenors, where clients opt for maximum repayment periods and use these facilities to their maximum before seeking professional counsel.

This surge in borrowing has led to an accumulation of outstanding payments, with many individuals approaching the limit in owed amounts.

Adding to the apprehension is the looming economic uncertainty coupled with expected interest rate hikes.

Professionals are highlighting the importance of responsible borrowing and financial literacy in mitigating the potential fallout from escalating debt levels.

More from OMY: A Complete Guide To Debt Consolidation Plan In Singapore

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