Debt burden of young Singaporean adults increases during pandemic

by BERNAMA

SINGAPORE – Personal debt among young adults in Singapore has been rising during the COVID-19 pandemic, and the situation could worsen once interest rates start to rise, Vietnam News Agency (VNA) reported.

Statistics of the Credit Bureau Singapore (CBS) show that the average personal loan and overdraft balances for people in the group age from 20 to 30 years old shot up 23 per cent quarter-on-quarter to S$49,689 SGD (US$36,600) in the first quarter of this year, about 42 per cent higher than the average of S$34,941 in the first quarter of last year.

For those under 30, the personal loan delinquency rate climbed 13.4 per cent quarter-on-quarter in the period.

The situation could be blamed on the rising unemployment rate and lower-income due to decreased working time, as many people have accepted cuts in working hours instead of losing their jobs.

The unemployment rate among under-30 people was 6.4 per cent in March this year.