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Friday, October 07, 2005

Spending in Asia

Is this scary or not? The scariness of spending and debt depends on the age group. It basically is okay to have higher debts when you are young, since it is possible to work them down until old age. In addition, debts in younger age groups might mean that the cash is used to build up a business, a career, that one is furthering the studies and so on. Not always, but it exists as a high possibility. Debt in old age is a bit more scary, as the older person might have hit the income plateau, and thus, might face difficulties in paying back. I generalise, of course, but these are trains of thought.

According to a study by Synovate, spending habits in Asia grow. "Across the region, monthly billing on charge and credit cards is up 15 per cent with Singapore card owners swiping US$729 ($1,226) a month, a 25 per cent increment over the survey period from the third quarter of last year to the second quarter of this year."

The survey polled some 20,000 people in the top 20 per cent income-earners across 11 countries. Some 1,700 were surveyed here where the average monthly household income rose from US$4,826 to US$5,456 over the survey period.

This is the third point, not mentioned above. Spending habits grow, when salaries grow. It is a matter of managing the increased income and this is a challenge, many households face.

(By Asia Business Consulting)