credit card debt ??

i was speaking to a client of mine last friday and got to know she is in a $5k credit card debt. I was thinking and wondering why Singaporeans is into credit card debt these days. Is it discipline ??

While i was listening to radio this morning, i overheard an advertisement about electrical appliances promotion with 0% installment loan to purchase those items available. I was thinking inside me if such a method of sales beneficial for consumers ? If i am the merchant, i would gladly jump into this option of sales as it will broaden my scope of prospect able to buy my goods. However, such a way to purchase items have caused consumers to have $1k of monthly installment for the next 2-3 years minimum. Once you about to clear one item, another item came up and you cant seem to clear the installment off your card.

This is probably the main reason why Singaporeans mainly pay minimum on their credit cards and allow credit card to charge them interest . Will Singaporeans ever get to retire ??? Are we dropping ourselves into American credit crunch trap ? However, on the contrary, news reported that Singaporean asset to liability are actually improving over the years. Maybe i have not have a lot of friends being the 5 figure income earners yet.

In a nutshell, its not how much we earn but how much we save for our future. Pride has certainly drive our emotions to make some senseless financial decisions which led us to financial un-freedom.

to a better financial future