Increase of unsecured debts in Singapore

http://business.asiaone.com/personal-finance/news/85352-singapore-consumers-owe-2884-million-unsecured-debt20151005_owedebt

Is this necessary a bad thing?

Banks had been very aggressive lately giving out low interest rates personal loan. As low as 0.8% interest per annum with no processing fee is too enticing to reject. Normally, these personal loans are given at promotion for only 6 months and the interest rate will shoot back to the exorbitant rate of 24%. The bank game on making a profit for personnel that illy managed their money.

However, if you are a master to the money, this a profitable for you FOR FREE!

CIMB offered a 1.6% return per annum fix deposit for minimum 9 months. If you had taken the money from one bank and cash deposit into CIMB FD, would you have gain the extra 0.8% for doing a little only? If your have a credit limit of S$48,000 based on 4x income rate, you would have earn extra $288 just for doing nothing over that 9 months. It is a free trip to Bali.

However, this game is only for the discipline. It is hard to resist not to spend seeing $48,000 liquid cash.

Nevertheless, this is how the rich play the safe game at a bigger denomination!

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