Topic: Debt
6 posts tagged “Debt”.
Good Debt, Bad Debt
Not all debt is equal. A simple two-part test sorts borrowing into the kind that can build your wealth and the kind that quietly drains it: what is the interest rate, and does the borrowing buy something that grows or earns?
The True Cost of Credit-Card Interest
Credit cards are a fine payment tool and a terrible loan. At a typical Singapore rate of around 26% a year, a balance left to revolve — especially if you pay only the minimum — compounds into a debt that can take years and far more than the original sum to clear.
Avalanche vs Snowball: Two Ways to Clear Debt
When you owe on several debts at once, the order you pay them matters. Two methods compete: the avalanche, which targets the highest interest rate first and is cheapest, and the snowball, which clears the smallest balance first and is the most motivating. The best one is the one you finish.
Is Your Home an Asset or a Liability?
Robert Kiyosaki famously declared that the home you live in is a liability, not an asset — a deliberately provocative claim that still starts arguments. He is partly right and partly wrong, and the nuance matters for how you think about a Singapore home.
Your Mortgage and Your Cash Flow
A home loan is the largest cash-flow commitment most people ever make. Singapore's borrowing limits — the TDSR and the MSR — cap how much you can borrow, but they are ceilings, not targets. The prudent move is to borrow comfortably below the line.
The Car-and-COE Cash-Flow Trap
In Singapore, a car is the clearest example of a want dressed as a need. With the Certificate of Entitlement alone costing more than S$120,000, the true monthly cost of ownership dwarfs the loan instalment most buyers focus on — and almost all of it is money that simply disappears.