I do not have to buy my credit report, which you can purchase from the Credit Bureau to assess your level of indebtedness and quality as a borrower.
Yet I am curious how much debt the folks in my age group have.
My age group are those that are around 35 to 39 years old.
They are the folks in the peak of their human capital.
It would seem despite that, they do take on a lot of loans:
- Credit Card Debt: $5384
- Personal Loan: $40674
- Motor Vehicles Loan: $34606
- Home Loans: $306079
Here are the break down of these categories:
We can see the majority of the people are starting to clear their home loans.
But I cannot explain the high personal loan rate at a period where we should have our emergency funds or saving towards our goals.
So why such a high personal loan?
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Eric
Tuesday 6th of December 2016
Hi Kyith,
i guess their cashflow is good that's why they can borrow to earn a higher interest rate. They could have borrowed cash at 2% to buy property/stock which yields 6-7%? I know of a friend who did that.
Kyith
Tuesday 6th of December 2016
HI eric, is it easy to get borrowing at 2%? What kind of loan is that. The spread of the leverage is rather small, and i think this is not a traditional loan so there should not be a margin call. i wonder how long he intends to be in that investment. if he lost 20% of the loan value, it will take a long time for dividend to make up for it.
smk
Monday 16th of May 2016
about bigfatpurse's post, Firstly, not all your peers may be unsecured borrowers. Secondly, you are using average debt figures while using median income figures.
Fred
Sunday 15th of May 2016
The figures do not reflect many HDB owners have no loans. It only shows those with loans and how much each category owes. There are many esp the older ones from 45 onwards having fully paid their mortgage.
Kyith
Monday 16th of May 2016
then how do we explain this average figures. if you repaid one property, you can always purchase another. if not, the majority of this amount would come from the top 5%?
WanderingSoul
Sunday 15th of May 2016
From my experience it is quite common for people to take personal loans to go for holidays.
Kyith
Monday 16th of May 2016
wanderingsoul that is a bit too much isn't it!
Sillyinvestor
Sunday 15th of May 2016
Hmm... cY and Kyith,
I am puzzled too. The 2 graphs seem to suggest that people are more comfortable in getting personal Loans??
Maybe they just deposit the cheque that banks send them???????
Kyith
Sunday 15th of May 2016
could they be renovation loans or something. what could consitute personal loans?