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Personal debts rising among young adults in S’pore amid pandemic, Credit Bureau Singapore data reveals

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Consumers in their 20s have been taking on increasing amounts of personal debts as the impact of the COVID-19 pandemic continues to hit, Credit Bureau Singapore (CBS) data revealed on Monday (16 Aug).

According to the data, the average personal loans and overdraft balances for those under 30 increased by about 23 per cent in the first quarter of this year compared to the last three months of last year.

CBS noted that the average personal loan and overdraft balances for borrowers from 21 to 29 years old rose to S$49,689 in the first quarter of this year, which is about 42 per cent higher than the average of S$34,941 in the first quarter of last year.

Borrowing limits in Singapore were capped in 2015 to help borrowers avoid accumulating excessive unsecured debts.

The data also showed that for those under 30 years old, the personal loan delinquency rate – refers to the percentage of borrowers with payments 30 days or more overdue – climbed 13.4 per cent in the first quarter of this year compared to the previous three months.

In addition, the overdraft delinquency rate increased by 12.8 per cent in the same period.

CBS executive director William Lim highlighted that there was an increase in credit consumption for mortgage loans, personal loans, and overdrafts from the younger segment in the first quarter of this year.

“We believe it could be attributed to them being more active again following the pandemic-strained 2020 and possibly the higher property prices,” he remarked.

While it was noted that mortgage debt among young adults was 2.6 per cent higher in the first quarter of this year than in the last three months of last year, the average credit card spending dropped 5.6 per cent over the same period.

Netizens speculating S’pore young adults’ spending habits during pandemic

Penning their thoughts under the comments section of The Straits Times’ Facebook post, netizens speculated the spending habits of young adults in Singapore during the pandemic, noting that most young people are spending money on food deliveries and online shopping.

“It’s not just how much you earn, but also how much you spend. It’s crazy seeing the amount people are spending on deliveries, bbt, app store… all totally unnecessary spendings.. then complain about having no savings (or in debt),” said one netizen.

A couple of netizens implied that people are taking personal loans because of the low salaries in Singapore.

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Part of Marine Parade experiences flooding after water pipe damage

Flooding occurred in Marine Parade on Friday morning (4 October) after a water pipe was damaged during lift retrofitting works near Block 67 Marine Drive. MP Dr Tan See Leng confirmed repairs are ongoing, with no disruption to water supply. Road access was restored later in the day.

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SINGAPORE: On Friday (4 October), parts of Marine Parade, including Marine Drive and Still Road South, experienced flooding following the damage of a water pipe.

The incident occurred at approximately 11.40 am during lift retrofitting works at the pedestrian overhead bridge near Block 67 Marine Drive.

Videos shared on social media show floodwaters extending onto surrounding roads.

Dr Tan See Leng, Manpower Minister and also a Member of Parliament for Marine Parade GRC, in a Facebook post confirmed that a damaged pipe led to water flowing onto Still Road South and nearby HDB blocks.

Dr Tan said the damaged water pipe has been isolated, and repairs are currently underway, with no disruption to water supply for local residents.

Staff at the Marine Parade Community Centre are in the process of restoring counter services, having previously faced difficulties accessing the area due to flooding.

Dr Tan noted that contractors from the Land Transport Authority (LTA) are collaborating with the Marine Parade Town Council to clean the affected region, aiming to complete the cleanup by Friday evening.

In an update posted at 4.53 pm, Dr Tan announced that road access along Still Road South had resumed, expressing gratitude to PUB, the Marine Parade Town Council, and the dedicated workers for their swift action in clearing the area just in time for peak hour traffic.

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WMP raises over S$1,600 in a day to help struggling family clear outstanding water bill

Workers Make Possible (WMP) raised over S$1,600 in a single day to assist a struggling family living in a rental flat. The family’s water supply was reduced due to an outstanding S$900 bill. The mother has been severely ill for months, unable to work, leaving her husband, who earns less than S$2,000 per month after CPF deductions, as the sole breadwinner.

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SINGAPORE: A struggling family living in a rental flat had their water supply reduced on 1 October, as revealed in an Instagram post by the workers’ rights advocacy group, Workers Make Possible (WMP).

In an effort to ease the family’s burden, a fundraiser was launched. By the evening of 1 October, S$1,620 had been raised.

Of this amount, S$1,200 was transferred to the family to fully clear their outstanding water bill and address other urgent expenses.

The family, which had been accumulating water bill arrears for several months, was informed by SP Group that their water supply would only be fully restored if they paid S$450 upfront—half of their total outstanding bill of S$900.

According to WMP, the mother of the family has been severely ill for months, leading to her inability to work.

As a result, her husband, who earns less than S$2,000 per month after CPF deductions, is the sole breadwinner for the family, which includes young children.

With the rising cost of living in Singapore, the family has struggled to manage household expenses, leading to unpaid bills, WMP shared in the post.

After contacting SP Group, the mother was told the water supply would resume if half of the arrears were paid. However, she could not afford the required S$450.

This situation occurs amid rising water prices in Singapore.

The government raised the price of water by 20 cents per cubic metre this year, with an additional increase of 30 cents planned for next year.

WMP argued that despite government subsidies, many low-income families continue to struggle to cover their basic utility bills.

“Subsidies offered by the government don’t come anywhere close to alleviating the struggles of poor families in paying these bills. PUB earned about $286 million in 2021,” WMP challenged.

To support the family, Workers Make Possible organised a fundraiser via PayNow. In a 5:30 pm update on 1 October, WMP announced that S$1,620 had been raised.

Of this amount, S$1,200 was sent to the family to clear their water bill, while the remaining S$420 will be used to assist a young warehouse worker struggling with illness and rent payments, WMP clarified.

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