More young people getting into debt problems
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Is the Government not to be blame ?Originally posted by Salman:These spoilt brats overspend and then complain about the govt for hard times they brought upon themselves. Its the same pattern all the time. I've seen so many of them.
The Government a.k.a the Ruling Political Party is the main culprit and cause for the problems of these supposed 'spoilt brats'.
If the Government can blame the cigarette manufacturers for the glossy advertisements that project FALSE MESSAGE of Sophistication and Life Style when smoking the cigarette, then the Government should also be blamed for ALLOWING the FALSE MESSAGE projected by Credit Card Companies.
The financial benefits TO the Credit Card Company is seldom loudly advertised, but the FALSE convenience of a FALSE IMAGERY of a sophisticated and quality Lifestyle with the use of Credit Card is aggressively pushed.
These Credit Card Companies charges more then FIVE percent interest rate a month on any sums left unpaid and carried over into the next month - although stated, its significant impact on the entire transaction is seldom strongly emphasized in the glitz and gloss of promoting the Card usage.
Besides the upfront FIVE percent monthly interest rate charged by the Credit Card Companies, they also use an EXORBITANTLY high foreign exchange rate in the conversion of any foreign currencies to the local currency of billing.
The EXORBITANTLY high foreign exchange rate is even higher then the foreign exchange rates posted by all leading banks.
Our Singapore Government is also a culprit in this entire game of sucking innocent and gullible Singaporeans into the web of financial deceit.
Take a look at the ezyCASH offer by the Singapore Post venture with GE MONEY - it offers a loan package of FOUR TIMES the Monthly Income at a supposed interest rate of 1.6% per MONTH for loans less than $8,000 and 1.5% for loan amounts of $8,000 and above (max $10,000) .
Although the glitz of 1.6% interest is emphasized with the ezyCash that one can get so readily, the gullible and financially unsophisticated will not look at the total impact of the interest at 19.2% charged per year !
This is the highest amount that this legalized 'Ah Long' is charging.
Despite the threat to the financial well being of the unsophisticated Singaporean, yet this Singapore Government a.k.a the Ruling Political Party can allow such a program to exist in all Government sanctioned service centres - Singapore Post - which is located in all the major centres where the Singapore 'Heartlanders' reside.
Singapore Post - ezyCash advertisement
http://www.singpost.com/ezycash/ezycash.html -
On the surface, a credit card problem seems to be the irresponsible educated young people of this generation. But look at the Credit Card problem at another view - The rising debt could be due to ease of getting credit over the years. Applying for DBS cash line used to be laden with restrictions but now it comes together with a credit card application without you even applying for it. The rise in credit card problems is also due to relaxing of credit policies by the government.
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The relaxing of credit is good for the economy and for those who are entrrepreneurial, in small businesses or in hard times.
The govt cannot control the people too much because this is a free country.
The facilities and controls are up to the banks and their clients.
The key to the problem is the values of the people. -
Easing of credit is good for the economy, but at what expense? There are many ways to boost the economy. Easing of credit is only a short term solution. After a while the credit runs dry, it will only bring misery by allowing those who cannot afford to spend and consume more.
The banks should be regulated if their pratices are unethical or mislead consumers. -
Please understand that there are also alot of genuine cases where the families are really going through hardships and requires financial assistance.Originally posted by Salman:These spoilt brats overspend and then complain about the govt for hard times they brought upon themselves. Its the same pattern all the time. I've seen so many of them. -
Relaxing of credit is good for the economy and those doing business, yes, but look, the thing here is not so much about the fact of money lending, it's more of the fact that the government is unfairly doing the money lending thingy (aka loansharks) because they are the main profiteers which previously loansharks have been denied to. Money lending has been around for a long time, and the reason those ah longs never get a chance to become legalize is because they never get approved nor permitted. So why are those loansharks not approved to become a legalize entity is because the government rationale is that these money lending scums are harming the society. And today, money lending is legalized, and at those cut throat interest rates, I do believe it's comparable to loan sharks as well as harming the society. But why is it legalized for SingPost to do it? Well, go figure, your guess is probably as good as mine...Originally posted by Salman:The relaxing of credit is good for the economy and for those who are entrrepreneurial, in small businesses or in hard times.
The govt cannot control the people too much because this is a free country.
The facilities and controls are up to the banks and their clients.
The key to the problem is the values of the people.
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You equate Singpost to loansharks? I think you need to go to a psychiatrist.
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This reminds me of an interesting (abit stupid) call that I received from a telemarketer....Originally posted by LinYu:Biggest culprit is these legal Ah Long who would push their credit cards, credit lines, ready credit etc....
Of course these young people are also to be blame.
I am always amaze by the stupidity of ppl when they try to push their products.
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TM: Dear sir, u have been chosen by XXX bank to have an unsecure loan at a preferential rate of a low of 2% for 6 months!
Me: I dun need the $$. I have enuff spare cash around. 10Q
TM: But sir, y dun u take 5,000 dollars? Juz for emgencies? U may never know when u need the $$
Me: Tell me Y i need to pay for interest for something which I do not need? even if it is low? I have enuff spare cash around....
TM: But the interest rate is very low... 2% leh
Me: Sorry... (hang up).
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Banks charge an ANNUAL loan rate of 2.5% over PRIME for long term loans - which makes it anywhere from 7.5% to 8% depending on the Prime Rate that is the base.Originally posted by Salman:You equate Singpost to loansharks? I think you need to go to a psychiatrist.
For short term loans, the Banks will charge either a flat rate of 5% on the prinicpal loan, or on the monthly or annual reducing balance.
At the rate of 1.6% PER MONTH that SingPost charges, the ANNUAL INTEREST will amount to 19.2% - which makes it 2.5 times higher then the Banks !
Besides making money from a 2.5 times higher interest rate than the Banks, it also make a good profit from charging administrative charges (1.99% on loan amount) with every application, and with added dubious schemes - (such as Payment Protector) - that allow them to profit another 1.25% on monthly balance.
If this is not legalize and creative loan sharking - what is it ?
It is probably you who will need psychiatric help with your lunatic imagination of continuously thinking about running circles around us, when you are actually running at a tangent to our issues posted. -
Like you said, the facilities and controls are up to the banks and their clients. If banks do their part by not encouraging all customers to sign up, will we have this problem? If banks do their parts by requesting entrepreneurs to show proof they are setting up a small company, will this happen? The problem is, banks don't. They ask you to sign up, no matter how old you are. I was even approched by one of them whether I am interested. I said I am underage. They asked me to consider. Isn't that overboard?Originally posted by Salman:The relaxing of credit is good for the economy and for those who are entrrepreneurial, in small businesses or in hard times.
The govt cannot control the people too much because this is a free country.
The facilities and controls are up to the banks and their clients.
The key to the problem is the values of the people.
While we have ourselves to blame for succumbing to their temptations, if they had not dangle the carrot right in front of us in the first place, will this happen? -
OMG, i didn't know SingPost is such a fierce and dangerous shark! Thank you for the info.Originally posted by Atobe:Banks charge an ANNUAL loan rate of 2.5% over PRIME for long term loans - which makes it anywhere from 7.5% to 8% depending on the Prime Rate that is the base.
For short term loans, the Banks will charge either a flat rate of 5% on the prinicpal loan, or on the monthly or annual reducing balance.
At the rate of 1.6% PER MONTH that SingPost charges, the ANNUAL INTEREST will amount to 19.2% - which makes it 2.5 times higher then the Banks !
Besides making money from a 2.5 times higher interest rate than the Banks, it also make a good profit from charging administrative charges (1.99% on loan amount) with every application, and with added dubious schemes - (such as Payment Protector) - that allow them to profit another 1.25% on monthly balance.
If this is not legalize and creative loan sharking - what is it ? -
I don't think having a wedding ceremony costing 40k will get one mired into debt. Don't wedding guest give angpow to the couple? Even if it does not add up to 40k it will also be 20k-30k how does 10k make somebody bankrupt? Legally I think you only need be in debt for 10k to become bankrupt candidate but we talking abt wedding couple between 2 single people who have for some years planned and saved for ceremony.
What I think makes people bankrupt is the easy credit thats available out there. Around this time when interest rates are low and economy seems to be swinging again as visibly seen from increased interest and activity in stock market, the feel good factor is back, coe car prices at all time low and lots of interest in the property sector, normally around this time, people will begin to get married, buy new car or upgrade house to take advantage of easy cheap money to borrow.
No matter how many people learnt from getting burnt in the last recession market crash during 90's or no matter how many people preach the virtues of frugal living or lessons of past years there will always be people suckered into the belief that they being young earning high pay are in the top income bracket so the good times will never end and will succumb to the lure of greed, fast cars babes and easy money. -
i owe my mommy 4k
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i think salman nothing to say le.Originally posted by Atobe:Banks charge an ANNUAL loan rate of 2.5% over PRIME for long term loans - which makes it anywhere from 7.5% to 8% depending on the Prime Rate that is the base.
For short term loans, the Banks will charge either a flat rate of 5% on the prinicpal loan, or on the monthly or annual reducing balance.
At the rate of 1.6% PER MONTH that SingPost charges, the ANNUAL INTEREST will amount to 19.2% - which makes it 2.5 times higher then the Banks !
Besides making money from a 2.5 times higher interest rate than the Banks, it also make a good profit from charging administrative charges (1.99% on loan amount) with every application, and with added dubious schemes - (such as Payment Protector) - that allow them to profit another 1.25% on monthly balance.
If this is not legalize and creative loan sharking - what is it ?
It is probably you who will need psychiatric help with your lunatic imagination of continuously thinking about running circles around us, when you are actually running at a tangent to our issues posted.
anyhow shoot. -
I think it will be easier for us to collect 10k for wedding dinner. 20-30k a bit too high.Originally posted by KumSioJui:I don't think having a wedding ceremony costing 40k will get one mired into debt. Don't wedding guest give angpow to the couple? Even if it does not add up to 40k it will also be 20k-30k how does 10k make somebody bankrupt? Legally I think you only need be in debt for 10k to become bankrupt candidate but we talking abt wedding couple between 2 single people who have for some years planned and saved for ceremony.
What I think makes people bankrupt is the easy credit thats available out there. Around this time when interest rates are low and economy seems to be swinging again as visibly seen from increased interest and activity in stock market, the feel good factor is back, coe car prices at all time low and lots of interest in the property sector, normally around this time, people will begin to get married, buy new car or upgrade house to take advantage of easy cheap money to borrow.
No matter how many people learnt from getting burnt in the last recession market crash during 90's or no matter how many people preach the virtues of frugal living or lessons of past years there will always be people suckered into the belief that they being young earning high pay are in the top income bracket so the good times will never end and will succumb to the lure of greed, fast cars babes and easy money. -
my cousin sister last time collected abt 30-40k hers was I think 80 tables when she married but her family rich ah.Originally posted by ndmmxiaomayi:I think it will be easier for us to collect 10k for wedding dinner. 20-30k a bit too high. -
You say rich already ma. But most Singaporeans are average. 10k is the highest target I set.Originally posted by KumSioJui:my cousin sister last time collected abt 30-40k hers was I think 80 tables when she married but her family rich ah. -
Earn $2000-2500 and yet owns a car just to sian gals-this kind mosy jia lat...
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i find the problems wif youngsters in singapore... they like to compare. example like comparing who got richer bf, latest hp models, grades.
it's plain sad that most pple here are too endulged in materials. -
+10000...Originally posted by ndmmxiaomayi:While it is true, there are other ways to cut down expenses.
Why eat in a 5-star hotel when a simple buffet dinner settles everything?
Usually it's the gal who want the glam wedding dinner without considering their financial status.The groom lan lan suck thumb has to agree... -
Luckily me social skills poor. Don't like crowds. So simple buffet dinner will settle everything for me.Originally posted by Marco_Simone:+10000...
Usually it's the gal who want the glam wedding dinner without considering their financial status.The groom lan lan suck thumb has to agree...
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You have your point, but the rule of thumb for angpow is $60, $80 or $200 in very very special case where it's a close friend or big big boss or big big customer then lan lan.Originally posted by ndmmxiaomayi:You say rich already ma. But most Singaporeans are average. 10k is the highest target I set.
1 table at hotel banquet normally $600 to $800
1 table at famous restaurant also cost $300 to $400 liao.
1 table can sit 8-10 people
1 wedding banquet at least 25-30 tables though I have seen some with 10 tables at private weddings.
so by simple division you can find out much you need to pay so you won't overpay or underpay lor and normally people do that, before going in ask each other "how you pay, how much you pay".
Most singaporeans may be average but one of the main bulk group of guest one often sees being invited to such dinners are office colleagues, ex-office colleagues or close uni friends of many years, not school student or army boy. And normally these people are already in their late 20's or 30+ and already working for some years. So the collection may be more than 10k.
But the point is the couple getting married have saved enough to pay for the dinner so it's already planned and budgeted for so whether they can recoup that amount from angpow or how much collection is immaterial. Therefore it's unlikely a wedding dinner costing 40k will mire them into any bankruptcy. -
by late 2005...
more than 23000 singaporeans declared bankrupt
business failure 07%
credit card debts 31%
others 62%
most of the bankrupts are in their 40s, married, male, makes more than the bottom 20%.
but more young singaporeans are joining them. -
btw the total roll over amount for credit cards debts as at late 2005 is $2.8 billion.
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can you believe this?
there are 500k people within the 18k per year salary brackets and the banks want to target these people for credit facilities.
they are asking MAS to allow credit cards at this range.