Sunday, May 15, 2016

Not all Singapore residents are unsecured credit borrowers.

People in my age group typically have (as at Dec 15)
  • $4,015 credit card bill
  • $23,981 personal loan
  • $31,491 car loan
  • $283,826 housing loan
  • $343,313 total loan
The 30-34 age group has a median income of S$4,080 and with $1,734.72 debt repayments, the debt servicing ratio is 42%! Don’t forget we have not added the mortgage repayments!  
I always remember the golden rule is to keep below 35%. 
It appeared that my peers are laden by debts.

I would say the information is inconclusive.

Not all Singapore residents are unsecured credit borrowers. 


4% of all unsecured credit borrowers is 72,000 people.

that makes 1,800,000 unsecured credit borrowers in Singapore Feb 2016.

Recently, we have about 3,900,000 residents.

Less than half are unsecured credit borrowers and the report clearly states their figures only factors in consumers who use 'these products'. Does these products mean unsecured credit? or all credit?

Regardless, the CBS figures the blogger uses may not be based on everyone in his age group. Is it 50%?  40%? 30% 66%?  That figure is not made known by CBS.

Statistics: Average vs Mean

Also the blogger uses average figures for the credit statistics but median figures for income statistics.
That is a disconnect. see statistics 101 average vs median.

As an example, from:

From the full screenshot (rolf's blog, excellent by the way) instead of the copy and paste, you can observe the distribution are very much skewed, meaning a smaller group of people are borrowing a lot of money. The rest are still not that high, my personal take.


The conclusion on the blogger's peers being debt laden is not cast in stone.

We can however conclude that unsecured credit debt for borrowers has been rising in nominal terms though.

another report in 2011