Unpaid credit card balances in Singapore hit 10-year high of S$9.07b

“I think (it’s) because the younger generation is encouraged to take on debt and are living on subscription models with recurring commitments,” she added.

“This encourages them to spend more, and to use credit to enjoy the lifestyle that they want. And it spirals.”

She expressed hopes that more youth can be exposed to financial literacy before they jump into credit, in order to prevent more runaway debt.

Dr Teo also said that while there are financial literacy workshops available and banks can offer guidance, people still end up learning financial management skills on the fly.

“There may be a need to start financial education earlier, especially because now we are entering really a cashless era where people from a young age do not see handling of cash directly,” she added.

“If it’s just seeing the numbers on their credit card app or maybe their bank app, it may not have the exact same impact as seeing the cash flow out from your hands directly, and that might be something that impacts how people actually view money and the outflow of money.”