4 Serious Warning Signs Singaporeans Often Choose To Ignore When in Financial Trouble

financial trouble singapore

Joanne Poh


Everyone in Singapore is worried about money. Just because you wake up in a cold sweat every day or have panic attacks on the MRT doesn’t necessarily mean you’re on the road to financial hell. It just means you’re Singaporean. On the other hand, you might have just opened another bottle of Martell, but that doesn’t mean all is right in lala land. Here are 4 signs you’re actually in big trouble:


1. You depend on someone else to make ends meet

Just because you’re enjoying life doesn’t mean the people in your life are. There are many people in our midst who rely on others to maintain their lifestyles. We’re not talking about people whose parents still support them, as Singapore is a place where family wealth stays in the family.

But if you’re borrowing money from friends and turning a deaf ear to their pleas to pay it back, or relying on your dates to finance your lifestyle, it might be time to do some soul searching. Once people wise up and start to leave you, you’ll get a rude shock. Good luck trying to pick up the pieces on your own.


2. You regularly take personal loans or payday loans

There’s a time and place for everything, including personal loans or payday loans. But if you find yourself taking out such loans on a regular basis, your financial situation looks dire. Not only are personal loans one of the most expensive ways to borrow money, they’re also a sign that your income is too low for your expenditure.

So let it slide if it happens once or twice because of an emergency or a once-in-a-lifetime expense, but if the moneylender greets you like an old friend every time you show up, it’s time to do something drastic.


3. You carry a revolving balance on your credit cards

Smart people don’t use credit cards because they don’t have the cash to pay up. They use credit cards to pay for things they can already afford, but want to build their credit score and get rebates, rewards and air points. That means that carrying a revolving balance on your credit card, no matter how small, is not smart.

You should be paying off your credit card bills in full each and every month. If you are carrying a revolving balance, stop being stupid and pay it off immediately. If you can’t, then you my friend are most definitely in financial trouble.


4. You are defaulting on your loans

If you have an existing loan such as a home loan or a car loan and are finding it hard to pay your installments, it’s an emergency. You are in very real danger of losing your property or even becoming bankrupt. If you’ve had to borrow money to pay off your loans, it might be time to think very carefully about whether it’s time to sell your car or property, especially if there are still many years left on your loan.

Defaulting on loans or credit card bills is super serious. This is how people end up bankrupt. Just because you’ve diligently avoided answering the phone doesn’t mean you’ve successfully dodged the debt collectors, because next thing you know someone will be knocking on your door in the name of the law.

Have you ever been in financial trouble before? Share your horror stories in the comments!

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Joanne Poh

In my previous life, I was a property lawyer who spent most of my time struggling to get out of bed or stuck in peak hour traffic. These days, as a freelance commercial writer, I work in bed, on the beach, in parks and at cafes, all while being really frugal. I like helping other people save money so they can stop living lives they don't like.