SINGAPORE: Credit card balances in Singapore that have rolled over to the next month crossed S$9 billion (US$7 billion) in the third quarter of 2025, hitting a record high since the end of 2014.
Such rollover debt has been rising steadily since the second quarter of 2021, when unpaid credit card balances stood at S$5.19 billion, according to figures from the Singapore Department of Statistics (Singstat).
Any amount on a credit card bill that is not paid in full before the due date is rolled over to the next bill, with interest charged.
Experts attributed the worrying trend to factors like people not spending within their means, consumer culture emphasising prestige items, and easier access to credit like “buy now, pay later” services.
One analyst said this could be a hint of growing financial pressures faced by Singaporeans amid rising prices.
The country’s core inflation rose sharply to 1.2 per cent year-on-year in October, driven by higher prices in services, food and retail. The last time core inflation went past 1 per cent was in December last year, when it reached 1.7 per cent.
“Currently, society does put an emphasis on having certain items of prestige, or owning different items that supposedly give you some sort of status symbol,” noted Dr Teo Kay Key, senior research fellow at the National University of Singapore’s Institute of Policy Studies Social Lab.
She pointed out that people may also believe that taking loans to pay for big-ticket items is healthy financial behaviour.
“People just accumulate these small, little loans and debts, and then finally, when it snowballs, they realise that they cannot handle all the financial commitments that they have made,” she added.
The rise of cashless payments means many may not tangibly realise how much they are spending as well, Dr Teo said.
The record rollover balances comes even as the number of credit card holders in Singapore has fallen.
Some observers said this could be due to the average credit card debt per cardholder being on the rise.
According to Singstat, there were about 6.1 million principal credit cardholders in the third quarter of this year – the lowest since the fourth quarter of 2023.
This figure had been on a steady rise since 2014.
“With economic pressures (and) the rollover balances, it makes repayment harder, so we see that even though there are fewer credit card holders, (the average debt) is still rising,” said Ms Jean Lee, manager of financial counselling centre Abdullam Life Counselling.
Nevertheless, credit card delinquency rates as a share of total cardholders have remained stable at less than 1 per cent – below the historical average, according to data available in April.
This suggests that most borrowers have been able to service their credit card debt, said Deputy Prime Minister Gan Kim Yong – who is also chairman of the Monetary Authority of Singapore – in a parliamentary response at the time.
Some safeguards have been implemented, including borrowers needing to meet the minimum annual income requirement of S$30,000 to qualify for a credit card.
Ms Lee said that enquiries for her firm’s counselling services have risen 13 per cent this month, compared with December last year.
This is especially concerning as many are only seeking help when the situation becomes uncontrollable, she added.
Those in debt are getting younger as well. Ms Lee said those looking for help are largely in their 30s and 40s, while it used to be people in their 50s and 60s.
“I think (it’s) because the younger generation is encouraged to take on debt and are living on subscription models with recurring commitments,” she added.
“This encourages them to spend more, and to use credit to enjoy the lifestyle that they want. And it spirals.”
She expressed hopes that more youth can be exposed to financial literacy before they jump into credit, in order to prevent more runaway debt.
Dr Teo also said that while there are financial literacy workshops available and banks can offer guidance, people still end up learning financial management skills on the fly.
“There may be a need to start financial education earlier, especially because now we are entering really a cashless era where people from a young age do not see handling of cash directly,” she added.
“If it’s just seeing the numbers on their credit card app or maybe their bank app, it may not have the exact same impact as seeing the cash flow out from your hands directly, and that might be something that impacts how people actually view money and the outflow of money.”
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Such rollover debt has been rising steadily since the second quarter of 2021, when unpaid credit card balances stood at S$5.19 billion, according to figures from the Singapore Department of Statistics (Singstat).
Any amount on a credit card bill that is not paid in full before the due date is rolled over to the next bill, with interest charged.
Experts attributed the worrying trend to factors like people not spending within their means, consumer culture emphasising prestige items, and easier access to credit like “buy now, pay later” services.
One analyst said this could be a hint of growing financial pressures faced by Singaporeans amid rising prices.
The country’s core inflation rose sharply to 1.2 per cent year-on-year in October, driven by higher prices in services, food and retail. The last time core inflation went past 1 per cent was in December last year, when it reached 1.7 per cent.
“Currently, society does put an emphasis on having certain items of prestige, or owning different items that supposedly give you some sort of status symbol,” noted Dr Teo Kay Key, senior research fellow at the National University of Singapore’s Institute of Policy Studies Social Lab.
She pointed out that people may also believe that taking loans to pay for big-ticket items is healthy financial behaviour.
“People just accumulate these small, little loans and debts, and then finally, when it snowballs, they realise that they cannot handle all the financial commitments that they have made,” she added.
The rise of cashless payments means many may not tangibly realise how much they are spending as well, Dr Teo said.
DROP IN PRINCIPAL CREDIT CARDHOLDERS
The record rollover balances comes even as the number of credit card holders in Singapore has fallen.
Some observers said this could be due to the average credit card debt per cardholder being on the rise.
According to Singstat, there were about 6.1 million principal credit cardholders in the third quarter of this year – the lowest since the fourth quarter of 2023.
This figure had been on a steady rise since 2014.
“With economic pressures (and) the rollover balances, it makes repayment harder, so we see that even though there are fewer credit card holders, (the average debt) is still rising,” said Ms Jean Lee, manager of financial counselling centre Abdullam Life Counselling.
Nevertheless, credit card delinquency rates as a share of total cardholders have remained stable at less than 1 per cent – below the historical average, according to data available in April.
This suggests that most borrowers have been able to service their credit card debt, said Deputy Prime Minister Gan Kim Yong – who is also chairman of the Monetary Authority of Singapore – in a parliamentary response at the time.
Some safeguards have been implemented, including borrowers needing to meet the minimum annual income requirement of S$30,000 to qualify for a credit card.
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FINANCIAL LITERACY SHOULD START EARLIER
Ms Lee said that enquiries for her firm’s counselling services have risen 13 per cent this month, compared with December last year.
This is especially concerning as many are only seeking help when the situation becomes uncontrollable, she added.
Those in debt are getting younger as well. Ms Lee said those looking for help are largely in their 30s and 40s, while it used to be people in their 50s and 60s.
“I think (it’s) because the younger generation is encouraged to take on debt and are living on subscription models with recurring commitments,” she added.
“This encourages them to spend more, and to use credit to enjoy the lifestyle that they want. And it spirals.”
She expressed hopes that more youth can be exposed to financial literacy before they jump into credit, in order to prevent more runaway debt.
Dr Teo also said that while there are financial literacy workshops available and banks can offer guidance, people still end up learning financial management skills on the fly.
“There may be a need to start financial education earlier, especially because now we are entering really a cashless era where people from a young age do not see handling of cash directly,” she added.
“If it’s just seeing the numbers on their credit card app or maybe their bank app, it may not have the exact same impact as seeing the cash flow out from your hands directly, and that might be something that impacts how people actually view money and the outflow of money.”
Continue reading...