Why Govt say won’t be next Govt?
I have been wondering as to why the Government now says that they may not be the next Government after the next elections?
Could it be because the number of Singaporeans struggling to make ends meet has increased to levels that are reaching breaking point?
$10b outstanding credit card loans
According to the Sunday Times news report “$10b in outstanding credit card loans by Xmas” (Dec 14) – “Around one in three cardholders – or nearly 540,000 people – were not paying their bills in full as of October.
540,000 people paying 24%?
And rollover balances – bills that are not paid in full – have also jumped 50 per cent to $5.4 billion over the same period. Several banks recently raised interest rates on credit card bills.” – When you don’t pay in full and rollover your outstanding credit card bills – you are incurring normally 24 per cent interest per annum.
What this can mean is that you may take a very long time to clear your debts.
1 in 4 workers can’t pay?
540,000 people is a lot of people, as it is about 25 per cent or one in 4 of the total resident workforce of 2.2 million.
Actually, it is even more frightening because you need to earn at least $30,000 a year and have a good credit record in order to get a credit card.
More than 600,000 people can’t pay?
So, what about those who can’t pay their debts to licensed moneylenders, loan sharks, pawn shops, other loans like credit lines, banks’ personal loans, car loans, renovation loans, education loans, business loans, home and commercial mortgages, etc?
How many people in total are we looking at who have a problem paying – more than 600,000?
Elections by May next year?
I will bet my money on the elections being in the first five months of next year because of the following:
Financial Tsunami for those who owe more than 1 year’s salary?
“And 3 per cent of cardholders – or around 47,000 people at last count – have debts exceeding a year’s salary.
Those who owe more than a year’s salary will have their credit facilities suspended and be asked to pay off the excess by next June, pointed out Mr Kuo.
“They must update their income information with the banks and also immediately take action to bring down their debts to avoid their credit cards from being suspended,” he noted.” – Can you imagine the financial stress and kaos when 47,000 people – affecting a total of about 160,000 family members – have their credit suspended in June next year as well as being “asked to pay off the excess (debts over one year’s salary) by next June”?
Actually it can get even worse, as the requirement to update your income information may result in a lower credit limit – and thus even a higher amount of “excess” debts to be paid off.
For those who have been relying on credit for essential goods and services or rollover transfers at normally around 6 per cent interest to avoid paying 24 per cent – you will be a “dead duck”.
May god help us – come June 2015!
Win battles lose war
I have been wondering as to why the Government now says that they may not be the next Government after the next elections?
Could it be because the number of Singaporeans struggling to make ends meet has increased to levels that are reaching breaking point?
$10b outstanding credit card loans
According to the Sunday Times news report “$10b in outstanding credit card loans by Xmas” (Dec 14) – “Around one in three cardholders – or nearly 540,000 people – were not paying their bills in full as of October.
540,000 people paying 24%?
And rollover balances – bills that are not paid in full – have also jumped 50 per cent to $5.4 billion over the same period. Several banks recently raised interest rates on credit card bills.” – When you don’t pay in full and rollover your outstanding credit card bills – you are incurring normally 24 per cent interest per annum.
What this can mean is that you may take a very long time to clear your debts.
1 in 4 workers can’t pay?
540,000 people is a lot of people, as it is about 25 per cent or one in 4 of the total resident workforce of 2.2 million.
Actually, it is even more frightening because you need to earn at least $30,000 a year and have a good credit record in order to get a credit card.
More than 600,000 people can’t pay?
So, what about those who can’t pay their debts to licensed moneylenders, loan sharks, pawn shops, other loans like credit lines, banks’ personal loans, car loans, renovation loans, education loans, business loans, home and commercial mortgages, etc?
How many people in total are we looking at who have a problem paying – more than 600,000?
Elections by May next year?
I will bet my money on the elections being in the first five months of next year because of the following:
Financial Tsunami for those who owe more than 1 year’s salary?
“And 3 per cent of cardholders – or around 47,000 people at last count – have debts exceeding a year’s salary.
Those who owe more than a year’s salary will have their credit facilities suspended and be asked to pay off the excess by next June, pointed out Mr Kuo.
“They must update their income information with the banks and also immediately take action to bring down their debts to avoid their credit cards from being suspended,” he noted.” – Can you imagine the financial stress and kaos when 47,000 people – affecting a total of about 160,000 family members – have their credit suspended in June next year as well as being “asked to pay off the excess (debts over one year’s salary) by next June”?
Actually it can get even worse, as the requirement to update your income information may result in a lower credit limit – and thus even a higher amount of “excess” debts to be paid off.
For those who have been relying on credit for essential goods and services or rollover transfers at normally around 6 per cent interest to avoid paying 24 per cent – you will be a “dead duck”.
May god help us – come June 2015!
Win battles lose war
