Credit & Loan

Why You’re Still In Debt After All This Time

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Reason: Credit card is a highly convenient tool for payment; however, it can also be a very costly method for loaning money. If your paycheck is insufficient and you are using cards to cover your necessities such as weekly groceries or electricity bills, you will be put in debt for a long time.

Solution: You must think of ways to raise your income and savings including getting a part-time job, renting a cheaper room, and reducing your daily expenses.


Reason: If you are spending lavishly in order to keep up with your ideal self, you can be quickly put in bankruptcy if you are not careful. In the outside you are seen as someone very successful because of your flashy BMW ride and your new huge flat. But little do others know that you have leased your BMW and rented some rooms of your flat.

Solution: Vanity and boastfulness is only for rich people. Live within your means.


Reason: Studies have shown that debt is associated with various mental illnesses including depression. When you are depressed, you have a difficulty with paying the bills and you are more likely to feel down because of your inability to manage it. The reality of the situation is also clear to you.

Solution: Your harsh realistic view of the world can lead you astray. So divide your total debt into smaller pieces and set several goals to pay them off.


Reason: Banks love it when clients only pay for the minimum balance. Making the lowest possible payment leads to more interest and time spent in debt. It can become more unmanageable if your balance continues to grow while your income stays the same.

Solution: Pay more than the minimum requirement each month to cut your payoff time and interest.


Reason: Many people rely on credit to cover the overwhelming costs of the holidays especially the Christmas-New Year season. This leads to starting the upcoming year off with a mount of debt. You better hide your plastic cards during those tempting seasons!

Solution: What you need during the holidays is support. You can either stay away from people who have a tendency to overspend or seek help from the credit experts at Credit Counselling Singapore.

Image Credits:

Image Credits:

Sources: 1, 2, 3, & 4

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