SINGAPORE – The number of people struggling under the load of unsecured debt such as credit card borrowing and personal loans shot up in the first six months of 2024.
There were 1,146 requests for help lodged with Credit Counselling Singapore (CCS) in the six months to June 30, up 18 per cent from the 973 requests in the same period in 2023.
The rise comes as CCS launched a programme on October 17 to extend its services to support low-income families facing financial trouble.
The Financial Capability Building Support scheme will start with a select group of families who were referred to CCS by social service agencies.
It aims to teach them financial concepts and skills so that they build prudent money and debt management habits, while helping them pare their existing debt pile.
CCS said the increase in calls for help from debt-distressed folk was partly due to people spending more following the end of Covid restrictions and the rise in living costs.
General manager Tan Huey Min said people coming for credit counselling are typically 40 years old, two-thirds are male, and roughly the same proportion are married with children. Their average gross monthly income is around $5,000.
The low-income families being helped now are in the lower 20 per cent income tier, earning a nominal income of $2,826 a month, noted Ministry of Manpower data.
CCS chairman Ang Hao Yao told a fund-raising lunch on October 17 at Fairmont Singapore that there is an urgent need to support these low-income families, who often face unique challenges in managing their finances.
Many of them fall into financial distress due to unforeseen circumstances such as job loss or medical emergencies, he noted, adding that they also do not have sufficient knowledge to manage their debts properly.