Singaporean households are taking on more debt than before, yet the broader financial landscape tells a reassuring story. Household balance sheet numbers from the recent Singapore Department of Statistics (SingStat) release showed that liabilities grew for the sixth consecutive quarter, rising 5.2% in the first quarter of 2025 compared with the same period a year ago and reaching $384.1 billion. This marks the sixth consecutive quarter of rising debt, driven mainly by increased borrowing for property purchases and other major expenses.
But don’t mistake rising debt for financial distress. For many Singaporeans, taking on long-term loans to finance big-ticket items such as homes is a sensible strategy, especially when balanced with careful cash management for everyday costs. In a city where the cost of living never sleeps, spreading payments over time helps families better manage their cash flow.
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Meanwhile, household financial assets have grown even faster, increasing by around 7.5% compared with a year ago to an estimated S$670.1 billion. This means that the liquid assets Singaporeans hold, including cash and bank deposits, comfortably cover their debts. With assets outpacing liabilities, overall household net worth remains healthy, climbing 8.1% in the first quarter compared to a year earlier, reaching $3.1 trillion. This marks a slight slowdown from the previous quarter’s 8.5% growth, but the momentum is unmistakable.
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Experts point out that housing loans continue to dominate household debt portfolios. Mortgage loans now represent more than 70% of total liabilities. Yet, resilient property values have provided a sturdy cushion, shielding households from overexposure and bolstering their net worth.
In essence, borrowing when paired with strong asset growth and responsible repayment can be a sign of financial strength rather than vulnerability.
I’ve been on the lookout for a credit card with the best rewards and after some research, I stumbled on this combo:
UOB Lady’s Credit Card x UOB Lady’s Savings Account
I’m excited to make the most out of my savings and spending, knowing that signing up for both can earn me up to an impressive 25X UNI$ per S$5 spent, equivalent to 10 miles per S$1!
How It Works for Me:
UOB Lady’s Credit Card: I earn 10X UNI$ per S$5 spent on up to two of my preferred rewards category(ies). That’s 4 miles for every S$1 I spend.
UOB Lady’s Savings Account: I boost my rewards with up to an additional 15X UNI$ per S$5 spent on my preferred rewards category(ies), adding up to 6 more miles per S$1.
Plus, there’s no lock-in period, giving me the flexibility to choose and change my preferred rewards category(ies) every quarter.
And the best part? There’s no minimum spend required, allowing me to earn rewards on my terms!
Painting the Picture:
I have plans to maintain a S$50,000 Monthly Average Balance (MAB) in my UOB Lady’s Savings Account and spend S$800 each month on my preferred rewards category(ies) with my UOB Lady’s Credit Card.
For me, a monthly S$800 spend is easily attainable since I spend the bulk on the Beauty & Wellness and Dining categories.
Here’s the rough breakdown if you’re interested:
Gym membership ($100)
Beauty/cosmetic buys ($100)
Personal grooming such as hairdressing, facial treatment/hair removal, nails/lash/eyebrows, etc. ($300)
Dining at my favourite restaurant and ordering food via foodpanda ($300)
This means in just one month, I could rack up 3,200 UNI$.
Keeping this up for 12 months means I could gather a whopping 38,400 UNI$ in a year!
Redeeming My Rewards:
I can convert these UNI$ into 76,800 KrisFlyer miles (1 UNI$ = 2 miles).
With that, I could snag my round-trip business class ticket to Hong Kong* within a year! It would be my first-ever business class experience.
But if I decide not to spend all my UNI$ on flying, I have plenty of other options too.
I can redeem my UNI$ for rewards from a variety of dining, shopping, and travel merchants on UOB Rewards+.
In essence, whether I’m aiming for luxury travel or indulging in simple everyday perks, the benefits add up quickly!
*Based on Singapore Airline’s Saver Awards Chart as of October 2023, excluding taxes, charges, and fees.
Maximizing Your Rewards:
You can choose and change your preferred rewards category(ies) every quarter. These include:
Dining
Travel
Fashion
Beauty & Wellness
Family
Transport
Entertainment
This flexibility means you can adapt as your spending habits and priorities shift.
Switch to whatever categories you deem fit quarterly to maximize your UNI$ and get the best rewards for your spending and savings!
For example, during the year-end holiday season, I can switch my rewards category to Travel. This allows me to book air tickets and easily hit the S$800 spending target in a single transaction!
By consistently managing my spending, I can easily accumulate a significant amount of UNI$ annually. During travel months, I can reach the monthly spending target even faster by booking air tickets and covering other travel expenses.
If you have more savings to park aside and can maintain at least a S$100,000 MAB, you can earn an additional 15X Lady’s Savings Bonus UNI$ on your preferred rewards category(ies).
So, it’s smart to consolidate your purchases with the Lady’s Credit Card to maximize your Lady’s Savings Bonus UNI$.
Curious About Your Rewards?
Wondering how many UNI$ and miles YOU can rack up based on YOUR spending and savings?
Simply click this link to UOB’s official website and click on ‘Calculator’ to access the ‘Lady’s Card and Lady’s Savings Account Calculator’ to enter your details and see your potential rewards in a flash!
Just like this:
Subsequently, as a card member, you can easily view, track and redeem your UNI$ rewards all on the UOB TMRW app.
0% LuxePay Interest-Free Payment Plan over 6 or 12 months on your luxury purchase (shoes or bags)
Exclusive Birthday Treats during your birthday month
e-Commerce Protection for your online purchases
Complimentary Travel Insurance covering up to 100,000 USD
Receive a S$250 Sephora Gift Card when you spend a min. of S$6,000 on your UOB Lady’s Credit Card. Limited to the first 280 eligible cardmembers.
For the UOB Lady’s Savings Account:
Receive a Bespoke Puffy Bag with Rose Leather Charm worth S$98 by reBynd, an eco-conscious brand by Bynd Artisan, when you apply for the account online and deposits S$5,000 new funds into the account. Limited to the first 150 customers in each calendar month from 8 March to 30 April 2025 only.
That’s not all. UOB is also rewarding ALL customers who hold both the UOB Lady’s Credit Card and UOB Lady’s Savings Account as of 30 Apr 2025 with a lucky draw chance to win an Éclat KNOT Alone® Double Pave Bangle worth S$520 or Gentle Monster sunglasses worth S$490.
T&Cs apply, of course. Insured up to S$100k by SDIC.
So stop waiting and join me right away by signing up now here.
Discover how to use loans strategically for personal and business growth. Learn about payday loans, SME loans, and financial planning tips for a secure future.
While this may sound ordinary, loans for managing money can be more than a safety net. They can be stepping stones toward big dreams. Whether you’re looking to expand your small business, cover emergency expenses, or invest in yourself, using loans strategically can make all the difference.
Here’s a practical guide that will help you navigate financial planning with loans without getting overwhelmed.
Why Loans Are More Than Just Borrowing
Loans are mostly misconceived as a last resort for people in financial turmoil. But the fact? Loans are a powerful financial tool whenever used wisely.
Think of them as your partners in your financial journey. They are there to help you seize opportunities, solve problems, and pave the way for growth. The key lies in knowing how and when to make use of it.
1. Borrow to Invest in Yourself
Sometimes, the best investment you can make is in yourself. Be it funding a professional course, earning a certification, or pursuing a degree, using loans for education or development of skills will yield benefits over a long period of time. This kind of investment not only increases your earning potential but also makes you more competitive on the job market.
Payday loans can be a godsend to bridge quick funding to cover immediate-term expenses in pursuit of your goals.
2. Loans for Business Expansion
For most small and medium-sized businesses, it is access to capital that makes the difference in scaling up, not just staying operational. A loan for an SME can give your enterprise that boost it needs when creating new talent, making investments in new equipment, or embarking on launching a new product.
It is, therefore, more convenient for you to get your funds through a number of options specifically tailor-made in Singapore for owners of businesses.
Interested in SME loans? Take a look at Capitall to see how they can help you expand your enterprise.
3. Manage Short-Term Needs with Payday Loans
Life has a way of throwing those unexpected expenses into our laps. Be it an unplanned medical bill, urgent repairs in the house, or a travel need cropping up all of a sudden, payday loans can bring quick respite.
These loans are meant for short-term financial gaps; hence, they have shorter approval and repayment periods. Just be sure to borrow only what you can comfortably repay.
4. Consolidate Debt for Better Financial Health
Overwhelmed with a lot of loans or debts? A debt consolidation loan is one that helps you put all of them together into a single, supermanageable payment. This makes budgeting easier and can even lower your overall interest rate to save money in the long run. Consolidating debt is smart when anyone has to juggle high-interest debts.
5. Establish a Good Credit History
One of the best ways to build a strong credit history is by taking loans and repaying them in time. A good credit score opens doors to larger loans with better interest rates in the future. Start small with manageable loans, repay consistently, and watch your financial reputation soar.
6. Plan Big Life Events Without Stress
Great moments in your life, such as marriage, buying a home, or starting a family, usually bear big price tags. Loans can make such events more manageable, as the cost is divided into smaller portions over a great deal of time. Just be sure to budget well and borrow only what you’re comfortable repaying.
7. Emergency Preparedness
Nobody likes to contemplate emergencies, but one should be prepared for them. Loans act like a financial cushion during contingencies, whether it is a medical emergency or a case of sudden loss of a job. Knowing you have access to quick funding provides peace of mind during challenging times.
8. Understand the Terms of the Loan
Be certain, before signing on the dotted line, that you understand every single condition of your loan. In particular, look for:
Interest Rates: Fixed rates come with fixed, predictable payments, while variable rates can fluctuate.
Repayment Tenure: The shorter the tenure, the bigger the EMI but the lesser the overall cost.
Hidden Fees: Check for any mention of processing fees, late payment fines, or even prepayment penalties.
Take time to understand the details of what is being discussed in order to avoid surprises in the future.
9. Choose the Right Loan for Your Needs
Not all loans are created equal. Here are a few popular options:
Payday Loans: These loans are ideal for urgent short-term expenses.
Personal Loans: Great for major life events or debt consolidation.
Sites such as OMY Singapore allow you to compare loans and choose the one that fits your needs.
10. Know When to Seek Help
If you are confused about taking which loan and how much, never feel shy to go for advice. Financial experts will explain your options for you and plan your financing. Similarly, being a businessman, consulting with a financial expert can keep you correctly utilizing loans for your benefit.
Successfully Managing Loans: Tips
Taking a loan is only half the journey. The other half is taken care of when you see to it that you run it responsibly. Here come some tips:
Create a Repayment Plan: Budget your monthly income to include your loan payments.
Avoid Overborrowing: Only borrow what is truly needed.
Set Reminders: Set up an automatic deduction or calendar reminder so you will never have to worry about missing a due date.
Communicate with lenders: If you’re having trouble making payments, reach out to your lender and talk about options for restructuring or deferring.
Loans as Tools, Not Loads
The golden rule is quite simple: loans are to work for you, not against you. They’re tools to help you get to where you need to go, instead of anchors holding you down from an economic perspective.
Prepare a plan in place for how the funds are going to be utilized effectively, loans can unlock possibilities one never thought available to him or her.
Think Long-Term
While loans can solve immediate problems, they’re also an opportunity to think long-term: scale your business, build your dream home, or set yourself up for a secure financial future. The right loan can help you get there faster.
Conclusion
Loans, if correctly leveraged, can be your best allies in your journey in finance. From payday loans, for emergency needs, to SME loans for a company’s expansion, knowing how to choose and manage a loan is what makes a person financially fit.
Access to exploring choices gets easy with platforms such as OMY Singapore. The bottom line should, therefore, be to borrow thoughtfully, plan profoundly, and use loans on what you want to turn to in the future. Use proper monetary strategies to realize your objectives without compromising your financial strengths to a great extent.
Browsed any online store recently? You’ve probably encountered the enticing “Buy Now, Pay Later” (BNPL) option. With the promise of splitting payments over weeks or months without interest or hefty fees, it seems like a dream come true. For many, it has been. Yet, as it becomes a tool for essentials like groceries, it’s worth pausing to consider: is BNPL as great as it seems?
#1: BUYER’S REMORSE HITS TOO LATE
Remember the days of saving for that dream pair of sneaks, making payments, and only taking them home after they were fully yours? BNPL flips this script. You get your purchase instantly, and with the click of a button, you’re locked into a commitment before common sense kicks in.
If regret creeps in later, BNPL doesn’t care. Essentially, you’ve handed over control of your wallet.
#2: RISKY CONNECTION TO YOUR CARDS
BNPL payments are often tied directly to your debit or credit card. Miss a payment due to insufficient funds? Expect a late fee. Fail to pay off your credit card balance on time? That BNPL purchase suddenly carries a hefty interest charge. What starts as a seemingly free loan could snowball into a mess of late fees and mounting credit card debt.
#3: IMPULSE SPENDING MADE EASY
Saving up for a purchase gives you time to evaluate if it’s truly necessary. BNPL removes that waiting period, nudging you to click buy without hesitation. So, if you’re going to use BNPL, be intentional. A new wardrobe for a job might be justifiable. A shopping spree because it’s interest-free? Not so much.
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#4: HAVING A MINDSET OF “ZERO” INTEREST
While many BNPL services advertise zero-interest payments, not all plans are created equal. Larger purchases, like appliances or electronics, may come with longer terms and interest. Sometimes, the interest rates are even higher than what your credit card might charge.
The trouble? It’s all too easy to click “BNPL” without fully reading the terms. Once the purchase is processed, undoing it can be a challenge.
#5: TRAPPED BY HIDDEN PSYCHOLOGY TRICKS
One of BNPL’s sneakiest pitfalls is how it breaks down costs. A purchase of S$80 might feel like a mere S$20 every fortnight. While this makes items feel more affordable, it also detaches you from the full cost. Couple this with a lack of financial education and relentless advertising, and many see BNPL as a way to manage money. The result? Early reliance on debt and a lifetime habit of paying things off in chunks rather than saving.
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IN A NUTSHELL
Don’t buy it if you cannot afford it. If you’re tempted, ask yourself: Do I truly need this? Can I pay for it outright?
Financial freedom isn’t about splitting payments or juggling debts. It’s about saving and spending within your means. BNPL may be a tool, but it’s not a safety net. In the end, whatever you’re buying will feel far better when they’re truly yours.
In a 2022 survey by the Institute of Policy Studies and Talking Point, 35% of participants admitted to spending more than they earned, with over 60% stating they used to subscribe to “buy now, pay later” (BNPL) schemes. How serious is the prevalence of these schemes? According to the Monetary Authority of Singapore, BNPL transactions reached around S$440 million in 2021. With the growing popularity of BNPL, navigating credit card ownership has become trickier, especially for younger generations.
If you’re a Gen Z, a younger millennial, or a guardian looking for the right credit card for a young adult, consider this guide to credit card recommendations and tips.
START WITH THE ELIGIBILITY
While requirements vary between financial institutions, these are the most common requirements:
a. Minimum Annual Income: typically S$30,000 for Singapore citizens/PRs or S$45,000 for foreigners
b. Minimum Age: at least 21 years old
c. Good credit history: Certain cards may require a solid credit record of several years
IDENTIFY THE RIGHT CREDIT CARD FOR YOU
Identifying the right credit card can feel overwhelming because of the variety of options in the market today. A good place to begin is by examining your lifestyle. Are you a frequent traveler or do you spend more money on groceries? After identifying the factors that matter to you the most, you can shop around and compare each credit card’s features.
On that note, here are some of the best credit cards for beginners in Singapore:
#1: FOR AVID TRAVELERS: KRISFLYER UOB CREDIT CARD
The KrisFlyer UOB Credit Card allows you to earn 3 miles per S$1 spent on Singapore Airlines, Scoot, KrisShop, and Kris+ purchases. Additionally, you can earn 3 miles per S$1 spent on dining, food delivery, online shopping, travel, and transport. For all other spending, you’ll earn 1.2 miles per S$1.
What’s more? From now until 30 Sep 2024, you can take advantage of a promotion offering up to 31,000 miles and a first-year annual fee waiver (worth S$196.20, including GST) when you spend a minimum of S$2,000 within 60 days of approval (T&Cs apply). Apply for KrisFlyer UOB Credit Card at uob.com.sg.
#2: FOR TRANSPORT AND SHOPPING REWARDS: DBS LIVE FRESH CARD
If you are looking for a credit card that rewards you for transportation and shopping, look no further than the DBS Live Fresh Card. It offers up to 6% cashback on transportation and shopping, along with 0.3% unlimited cashback on every eligible purchase. Keep in mind that a minimum spend of S$800 is required, with a cashback cap of S$70.
Best of all? There’s a promotion of S$150 cashback when you spend a minimum of S$800 within 60 days of card approval (T&Cs apply). This promotion is valid until 30 Sep 2024. Learn more about the DBS Live Fresh Card at dbs.com.sg.
#3: FOR ONLINE & IN-STORE SHOPPING: CITI REWARDS CARD
The Citi Rewards Card allows you to earn 10x points or 4 miles per S$1 on online and shopping purchases. You can also earn 1x point for all other spending. Additionally, you can redeem your points for every purchase via the Citi Mobile App. You will get S$1 with every 440 points.
If you’re interested in applying now, you can receive up to S$450 in cash rewards or 5,540 SmartPoints, plus a chance to win a Rolex Submariner Date 126610 (T&Cs apply)! Hurry, as the promo runs until 13 Sep 2024. Sign-up for Citi Rewards Card at citibank.com.sg.
READ THE ANNUAL FEES
Much like the benefits, annual fees vary across credit cards. Some cards offer no annual fees, while others may waive the fee for the first year. However, don’t automatically choose a no-fee card as you need to compare the features before deciding what suits you best.
Pro tip: Sometimes, you can get the annual fee waived simply by requesting it from your bank. It doesn’t hurt to try!
FINAL THOUGHTS
Getting your first credit card is an exciting milestone, but it also brings new responsibilities. As a newbie, it is important to do your research first before committing to a credit card application. Then, always monitor your spending and stay within your credit limit to avoid financial stress. Lastly, make sure to pay off your balance on time to build a solid credit history.
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Disclaimer: All data provided is accurate as of 10 September 2024. Promotional details are subject to change at the discretion of the respective banks. Please conduct your own due diligence when comparing credit cards and their offers before signing up, as individual lifestyles and needs may vary. Use this article as a guide only. Thank you.
Anna Agoncillo
MoneyDigest
