Debt

Closely related to my previous post on materialism is the alarming financial indebtedness of our young people. For one, I have never owned a credit card in my life – a debit card offers the same convenience as a credit card without the temptation of spending beyond your means.

So I just don’t understand the lure of credit cards among young adults nowadays. Credit cards let you spend money you don’t have. This sounds exactly like a scam you should run away from! Don’t even let yourself purchase things on credit, unless you know you can pay back on time – why start yourself on an endless cycle of debt?

Younger Singaporeans biggest debt defaulters

”Figures released by DP Credit Bureau showed that the percentage of default records of 21 to 29 year olds rose from five per cent (5.07%) in January 2009 to seven per cent (7.16%) in December 2009… The rate of bad debts of Singaporeans between 21 and 29 years old is more than double (130%) than the average rate for all consumers at 3 per cent (3.11%).”

And I thought our youths were smart. But they’re addicted to the lure of spending power, of being able to buy things now and worry about paying for them later. Why can’t youths think more clearly, and why do they keep going into debt?

Youth debt

The website above suggests societal pressure and easy accessibility of credit as reasons for this phenomenon. I don’t disagree – every day, our youths are exposed to ideals of a perfect lifestyle, and every day, you see those credit card salesmen camped outside office buildings trying to sign young people up for new accounts.

But for youths to blame their problems on these external things are all too typical and show a lack of responsibility. I suggest, again, that they look inward and admit to themselves that it’s mainly materialism and the Dream at work. Privileged youths of today dream of having lavish lifestyles of the rich and famous, and ignore the fact that these rich and famous people earned their money through quality work and not through signing up for credit cards! These youths want the rewards without the hard work, and that need for instant gratification has made so many of them buy their dreams with tomorrow’s money. When will they realize they’re being foolish?

There’s no question about it – they need to stop living in dreamland and start living within their means. Smart people go into debt for the right reasons – to start a business, to pay for an education, for family emergencies – but there’s absolutely NO justifiable case for taking on debt to sustain materialistic desires. These youths should be ashamed of themselves for their lack of self-control, and I feel sorry for those parents who have to eventually bail their children out when they really should be pampering themselves with their retirement nest eggs!