Unpaid credit card balances in Singapore have reached their highest level in a decade, with rollover debt crossing 9.07 billion Singapore dollars in the third quarter of 2025. This is the highest figure recorded since the end of 2014, based on data released by the Singapore Department of Statistics. Rollover debt refers to the amount left unpaid after the due date, which then carries interest into the next billing cycle.
The figures show that this type of debt has been steadily rising since the second quarter of 2021, when unpaid balances stood at 5.19 billion Singapore dollars. Since then, the number has continued to climb quarter after quarter, reflecting changes in spending behaviour and financial pressures faced by households.
Experts say several factors are contributing to this trend. These include people spending beyond their means, a consumer culture that places value on status and prestige items, and easier access to credit through services such as buy now, pay later. One analyst noted that this could be a sign of growing financial strain among Singaporeans, especially as daily expenses continue to rise.
Singapore’s core inflation rate rose to 1.2 percent year on year in October, driven by higher prices for services, food, and retail items. The last time core inflation crossed the one percent mark was in December last year, when it reached 1.7 percent.
Dr Teo Kay Key, senior research fellow at the National University of Singapore Institute of Policy Studies Social Lab, said society often places importance on owning items linked to status. She explained, “Currently, society does emphasize having certain items of prestige, or owning different items that supposedly give you some sort of status symbol.” She also pointed out that some people see taking loans for big purchases as normal financial behaviour.
“People just accumulate these small, little loans and debts, and then finally, when it snowballs, they realise that they cannot handle all the financial commitments that they have made,” she added. Dr Teo also mentioned that cashless payments make it harder for people to feel how much they are spending, since there is no physical exchange of money.
Interestingly, the rise in unpaid credit card balances has happened even as the number of principal credit cardholders has dropped. Singstat data shows there were about 6.1 million principal cardholders in the third quarter of 2025, the lowest since the fourth quarter of 2023. This suggests that average debt per cardholder may be increasing.
Ms Jean Lee, manager at Adullam Life Counselling, said, “With economic pressures and the rollover balances, it makes repayment harder, so we see that even though there are fewer credit card holders, the average debt is still rising.” She also shared that enquiries at her counselling centre rose by thirteen percent this month compared to December last year.
Those seeking help are getting younger. Ms Lee noted that most clients are now in their thirties and forties, compared to those in their fifties and sixties in the past. “The younger generation is encouraged to take on debt and is living on subscription models with recurring commitments,” she said. “This encourages them to spend more and to use credit to enjoy the lifestyle that they want. And it spirals.”
Despite this, credit card delinquency rates have remained stable at a rate of less than one percent among total cardholders. Deputy Prime Minister Gan Kim Yong previously stated that most borrowers are still able to service their debt, adding that safeguards such as the minimum annual income requirement of $30,000 remain in place.
Both Dr Teo and Ms Lee agreed that financial literacy needs to start earlier, especially in a cashless society where spending can feel less real.
