Debts 01 - Govt etc (May10 - Oct16)

[millionairemind]

Younger S'poreans, higher debt

By Harsha Jethnani

YOUNGER Singaporeans appear to struggle with managing credit and debt, payment data from last year suggests.

In figures collated by DP Credit Bureau (DPCB), Singaporeans between the age of 21 to 29 years old saw defaults increase from 5.07 per cent in January last year to 7.16 per cent in December.

The rate of bad debts in the same group is at 130 per cent, higher than the average rate across all age groups which is 3.11 per cent, a statement from DPCB said yesterday.

Credit card defaults were the most common for all groups with the 21 to 29 year olds leading the pack with a 7.54 per cent default rate.

Young married couples in the same segment had even higher rates of defaults on debts than single counterparts, a characteristic unique to only this age group. Across all other age groups, couples had lower rates of default than singles of the same age.

'Unlike their older counterparts, many younger people do not have the financial strength and asset depth to deal with changes in their circumstances,' said DPCB's managing director, Ms Chen Yew Nah.

And since young married couples are more prone to defaulting on payments, 'they need to reassess their spending plans and set themselves more realistic budgets that they can stick to', Ms Chen said.

The 50 to 59 year olds were found to be the biggest credit spenders, mainly by credit card spending, but the group had a moderate rate of bad debts - 2.19 per cent - lower than the 3.11 per cent average stated earlier.

Those older than 69 has the lowest rate of default, as they also spent the least using credit.

And where credit is concerned, 'prevention is certainly the better way to go', Ms Chen said, unless consumers genuinely understood how credit tools can be managed carefully.

Source: Business Times

[kennynah]

same old problem....repeating in each generation....

parents have a duty to instill financial discipline in their children....

[millionairemind]

same old problem....repeating in each generation....

parents have a duty to instill financial discipline in their children....

Er.... actually I see alot of parents spending way beyond their means..

[kennynah]

then....上梁不正，下梁歪 bo pian loh....

in this case, it will have to be hard knocks that will eventually be the teacher.... everyone goes thru them in one way or another...

[iam802]

....

'Unlike their older counterparts, many younger people do not have the financial strength and asset depth to deal with changes in their circumstances,' said DPCB's managing director, Ms Chen Yew Nah.

And since young married couples are more prone to defaulting on payments, 'they need to reassess their spending plans and set themselves more realistic budgets that they can stick to', Ms Chen said.

.....

Very mouthful 2 paragraphs. Should just say "Spending beyond one's means".

[kennynah]

swee

[winston]

Stats of the week: 42

The number of cents the U.S. government borrowed for every dollar it's spent so far in 2012, according to the Congressional Budget Office.

Source: Daily Wealth

[winston]

Do u know what's going on ?

DJ China's Local-Government Borrowing Continues To Rise - Report

SHANGHAI (Dow Jones)--Local governments in China are borrowing more from banks despite concerns over their ability to repay debt, state-run China Daily reported Wednesday, citing a former top banking regulator.

"The debt figure is still rising because the government has encouraged banks to channel credit to projects that are now under construction and to keep doing so until they are completed," the paper quoted Liu Mingkang, former chairman of the China Banking Regulatory Commission, as saying.

Liu said local governments now hold about CNY11 trillion ($1.7 trillion) in debt and that bank loans account for 80% of that amount, according to the report.

Newspaper website: http://www.chinadaily.com.cn

Source: Dow Jones Newswires

China's Local Debt Grew by Only $47 Million in 2011: Wen

China's local government debt load rose by a mere $47.42 million last year, Premier Wen Jiabao said Wednesday, downplaying risks from an issue that is a key concern for the health of the economy.

http://sg.mg6.mail.yahoo.com/neo/launch ... hehh4ufmct

[winston]

How Far to the Wall ? by Terry Coxon

Decades of manipulation by the Federal Reserve (through its creation of paper money) and by Congress (through its taxing and spending) have pushed the US economy into a circumstance that can't be sustained but from which there is no graceful exit.

http://www.caseyresearch.com/articles/h ... 447ED0412C

[winston]

The Deadliest Vicious Cycle We've Ever Seen

My family and I have been tracking speculative bubbles and busts for 80 years.

We've personally witnessed 12 recessions, two depressions, five stock market crashes, three real estate busts, three bank failure epidemics, and two of the most vicious inflationary spirals of all time.

But nothing has prepared us for what we're seeing now!

Just look how dramatically the world has changed since 2000:

http://www.yolohub.com/economy/the-dead ... -ever-seen