Cents and Sensibility
Debtor Interviews
We ask several debtors what caused them to go into financial debt, the struggles they faced, and how they eventually resolved their debt problems.
I was retrenched two years ago and was unable to find a similar job in the same industry. I was the sole breadwinner in my family, supporting my wife, son and parents who had retired.
I used credit cards for the family's daily spending and had difficulties in keeping up with the monthly balance. I started to work as a private hire driver but income was unstable especially in the initial phase.
After obtaining a debt management program, I am in much better financial position now. My family has learnt to be more prudent in our spending and to save for rainy days.
I have a stable job and I used to splurge on luxury goods to keep up with a high-flying lifestyle image.
To cope with work stress and some relationship problems, I found myself being addicted to shopping. Gradually, this addiction consumed my life and my house was stacked with so many luxury goods which I did not even use.
I have now overcome the shopping addiction through help from my church. I am on a debt management program to pay off my shopping debts in an affordable manner and I am well on my way to becoming debt-free in a few years time.
John (not real name) in his 40s
Rachel (not real name) in her 30s
I never fully understood the terms and conditions of my unsecured credit facilities. I blindly chalked up debt without realizing the interest cost involved. I only paid the monthly minimum balance on my unsecured credit facilities. It is only later that I realized my principal outstanding will not reduce much this way as most of the minimum balance is interest cost.
Now I understand that unsecured credit facilities are usually the most expensive types of credit. I have changed my spending lifestyle and paid off my debt. I now adopt a very disciplined approach in using credit cards. I only use credit cards to enjoy merchant promotions and I always pay up in full each month.
I was running my family business and we were doing well for decades. I prided myself on being able to provide a good life for my family.
Then the business environment changed and my business started to bleed. I was unwilling to let go and turned to using personal loans to support my business. My debt ballooned to huge proportion. I was in depression and denial mode.
Eventually, I came to understand the merits of bankruptcy for my situation and overcame my previous misconceptions of it. I am able to retire and not burden my family with my debt.