SINGAPORE – The amount of credit card debt not paid by the due date hit a record high late last year, but the level of indebtedness is not ringing any alarm bells yet.

Rollover balances – the term used for card amounts owing – came in at $8.3 billion in the final quarter of 2024, up 4.9 per cent on the third quarter’s $7.9 billion, which at that point had been the highest recorded since data was available in 2014.

It was also higher than the $7.3 billion in the final three months of 2023.

But the delinquency rate – the percentage of borrowers with payments overdue for 30 days or more – has remained stable, data from the Monetary Authority of Singapore and Credit Bureau Singapore showed.

Assistant Professor of Finance Ruan Tianyue at the National University of Singapore Business School said she is not too concerned as the average consumer balance outstanding has remained “roughly the same”.

“It is still under control. I do not think the average balance is very alarming,” she noted.

A recent Credit Bureau Singapore (CBS) report indicated that the average unsecured credit card balances across different age groups jumped between 1.3 per cent and 5.9 per cent, from the third quarter of 2024 to the fourth.

People aged between 30 and 34 recorded the biggest jump, with average card balances up 5.9 per cent to $4,448.

Those 35 to 39 followed closely behind – their average outstanding balances increased 5.5 per cent to $5,894.

Folk over 54 posted the smallest increase of just 1.3 per cent to $3,950.

The credit card delinquency rate has also stayed around the 1 per cent to 3 per cent range across the age groups.

Those between 40 and 44 had the highest delinquency rate of 3.79 per cent, while the 21 to 29 cohort logged the lowest of 1.98 per cent.

The age group with the biggest increase in card balances – those 30 to 34 – had a delinquency rate of 2.62 per cent. That is up 0.09 percentage points or 9 basis points from 2.53 per cent in the previous quarter.

Prof Ruan noted from the CBS report that there were about 30,200 new enquiries for personal loans in the fourth quarter, an increase of 23.4 per cent from the third quarter. This indicates that people may be switching from credit cards to such loans to tide them over difficult times, she said.

“It will be interesting to see whether people who take up these new personal loans can make payments on time, going forward,” Prof Ruan added.

Professor Sumit Agarwal, who teaches finance, economics and real estate at the NUS Business School, said people are taking on more debt, whether personal loans or credit cards, because the cost of living is high.

“People still need to buy and consume necessities. That does not mean there will be defaults,” he added.

Prof Agarwal noted that the government dished out more financial support in last month’s Budget.

To mark Singapore’s 60th birthday, all Singaporeans will get between $600 and $800 each in SG60 vouchers, on top of personal income tax rebates of up to $200 for the 2025 year of assessment. This means that income earned in 2024 will benefit from the tax rebate.

Every Singaporean household will also get $800 worth of CDC vouchers and up to $760 in utilities rebates.

The CDC voucher scheme is a temporary measure that was introduced in June 2020 to help low-income households cope with cost of living pressures during the pandemic. 

Prof Agarwal said that prices will remain elevated as US tariffs spark fears of trade wars, which will hurt the global economy and fuel inflation, posing a challenge for Singapore given how much it imports.

“Something has to be done to bring the cost of living down and ensure consumers do not feel the pinch,” he noted, adding that this can be achieved by “growing the economy and keeping the unemployment rate low”.

Observers said that the average Singapore household has the financial buffer to withstand any headwinds.

Prof Ruan noted that household net worth – the difference between assets and liabilities – is still growing. 

Department of Statistics data showed that household net worth hit $3.1 trillion in the fourth quarter of 2024, up 8.4 per cent on the same period in 2023. 

Household net worth has been positive since the third quarter of 2009, after briefly turning negative in the first half of 2009 and the fourth quarter of 2008.

Positive net worth indicates that a typical Singapore household’s assets outweigh their financial obligations, so they can meet commitments when they fall due. Negative net worth, by contrast, means households cannot pay off debts.

“The average Singapore household is in relatively good footing,” Prof Ruan said.

Prof Agarwal added: “Singapore has seen worse than this. Covid was a big macro shock but there was no balance sheet problems at the banks even after Covid.”

“This is a smaller shock relative to Covid.”

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