Credit card debt crosses $8b in Q4 to hit new high

But data shows delinquency rate remains stable; households still financially healthy

- Chor Khieng Yuit

The amount of credit card debt not paid by the due date hit a record high late in 2024, 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 (CBS) showed.

Assistant professor of finance Ruan Tianyue at the NUS 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 added.

A recent 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.