SINGAPORE – Personal debt among young adults in the republic has been increasing during the Covid-19 pandemic, and the situation may worsen once interest rates start to rise, reported Vietnam News Agency.
Credit Bureau Singapore statistics showed that the average personal loan and overdraft balances for people aged between 20 and 30 years old shot up 23% quarter-on-quarter to S$49,689 (RM155,000) in the first quarter of this year, about 42% higher than the S$34,941 average in the same period last year.
For those under 30, the personal loan delinquency rate climbed 13.4% quarter-on-quarter in the same period.
The situation could be blamed on the rising unemployment rate and lower income due to decreased working hours.
The unemployment rate among those under 30 was 6.4% in March. – Bernama, August 16, 2021
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