09-07-2012, 07:39 AM
Spend, spend, spend. Let the good times roll! 
The Straits Times
Jul 9, 2012
Singaporeans splash more on their plastic
By MAGDALEN NG
SINGAPOREANS are charging more to their credit cards, with average monthly balances increasing steadily over the past 10 years.
For the first four months of this year, monthly spending per consumer averaged $4,930, up 51 per cent from $3,275 in 2002, according to data compiled by Credit Bureau (Singapore) or CBS.
The figure was also 7 per cent higher than the average of $4,580 posted last year for the full year.
CIMB regional economist Song Seng Wun said the resilient job market is propping up credit card spending.
'When it comes to spending, it boils down to job security and income growth,' he said. 'Unless bosses start to reduce bonuses or retrench as demand slows from Europe and the United States, there are still lots of opportunities to tempt people to spend.'
The increase was broad-based across all age groups, and the highest spenders remain those aged between 45 and 49. They topped the spending chart with an average monthly balance of $6,122.
CBS executive director William Lim said those aged 45 to 49 are typically people who have reached the peak of their careers and have stable jobs.
'They would be at a stage of their lives where they are more affluent, with a higher disposable income,' he said.
The increased reliance on plastic could also be due to banks rolling out privileges such as frequent flier miles and cash rebates to get customers to charge more to their credit cards.
Account executive Charlene Xu, for one, has been charging as much as possible to her card to earn miles on Singapore Airlines' frequent flier programme. She hopes to redeem a trip to London at the end of the year.
'If I have meals with friends, I'll ask them if they are willing to let me pay first with my credit card. I've also given instructions to my parents to tell me when they are purchasing any big-ticket items,' said the 32-year-old, whose credit card charges total about $2,500 every month.
More Singaporeans are now carrying plastic as well, with the total number of cardholders at 1.44 million as of April this year, up 87 per cent from 770,716 in 2002.
Ms Ooi Huey Tyng, who heads cards and unsecured loans at DBS Bank, said: 'The increase in total billings for card spending can be attributed to many factors such as growing familiarity with card usage and increasing acceptance among merchants.'
Despite the increasing number of cardholders and the growing amount charged, delinquency rates have fallen.
Delinquents are defined as those whose credit card accounts have been past due for 30 days or more, or those who have outstanding balances.
The percentage of delinquents has fallen from 13.05 per cent in 2002 to 6.7 per cent this year.
Mr Lim of CBS said low unemployment levels in the past two years have contributed to regular repayments. In recessionary years, consumers are more likely to rely on credit to tide them over, so delinquency tends to rise.
songyuan@sph.com.sg
The Straits Times
Jul 9, 2012
Singaporeans splash more on their plastic
By MAGDALEN NG
SINGAPOREANS are charging more to their credit cards, with average monthly balances increasing steadily over the past 10 years.
For the first four months of this year, monthly spending per consumer averaged $4,930, up 51 per cent from $3,275 in 2002, according to data compiled by Credit Bureau (Singapore) or CBS.
The figure was also 7 per cent higher than the average of $4,580 posted last year for the full year.
CIMB regional economist Song Seng Wun said the resilient job market is propping up credit card spending.
'When it comes to spending, it boils down to job security and income growth,' he said. 'Unless bosses start to reduce bonuses or retrench as demand slows from Europe and the United States, there are still lots of opportunities to tempt people to spend.'
The increase was broad-based across all age groups, and the highest spenders remain those aged between 45 and 49. They topped the spending chart with an average monthly balance of $6,122.
CBS executive director William Lim said those aged 45 to 49 are typically people who have reached the peak of their careers and have stable jobs.
'They would be at a stage of their lives where they are more affluent, with a higher disposable income,' he said.
The increased reliance on plastic could also be due to banks rolling out privileges such as frequent flier miles and cash rebates to get customers to charge more to their credit cards.
Account executive Charlene Xu, for one, has been charging as much as possible to her card to earn miles on Singapore Airlines' frequent flier programme. She hopes to redeem a trip to London at the end of the year.
'If I have meals with friends, I'll ask them if they are willing to let me pay first with my credit card. I've also given instructions to my parents to tell me when they are purchasing any big-ticket items,' said the 32-year-old, whose credit card charges total about $2,500 every month.
More Singaporeans are now carrying plastic as well, with the total number of cardholders at 1.44 million as of April this year, up 87 per cent from 770,716 in 2002.
Ms Ooi Huey Tyng, who heads cards and unsecured loans at DBS Bank, said: 'The increase in total billings for card spending can be attributed to many factors such as growing familiarity with card usage and increasing acceptance among merchants.'
Despite the increasing number of cardholders and the growing amount charged, delinquency rates have fallen.
Delinquents are defined as those whose credit card accounts have been past due for 30 days or more, or those who have outstanding balances.
The percentage of delinquents has fallen from 13.05 per cent in 2002 to 6.7 per cent this year.
Mr Lim of CBS said low unemployment levels in the past two years have contributed to regular repayments. In recessionary years, consumers are more likely to rely on credit to tide them over, so delinquency tends to rise.
songyuan@sph.com.sg