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Financial crisis a wake-up call for ‘loan-happy’ Singaporeans

I REFER to last Wednesday’s article, ‘Warning: Suicide peak ahead’. I agree with Dr Chia Boon Hock that the downturn may lead to a peak in suicide rates here.

The way Singaporeans take on huge mortgage loans to buy properties is a cause for concern. During good times, many rush to buy homes, even if the properties are beyond their means. They do not have a backup plan if things go sour.

Working couples simply calculate how much Central Provident Fund they have to use per month to pay the loan.

In many countries, people prefer to rent a house or take up a small short-term loan if they need to buy property. Loans of more than 10 years are seen as a burden as people want to stay debt-free.

Here, it is a habit to take up all kinds of loans to buy property, cars, furniture and other items. This is a bad habit I hope people will not adopt.

I hope Singaporeans will learn from this crisis and come up with mortgage repayment plans based on a worst-case scenario, for example, if one income earner is laid off.

I also hope spouses and friends will be more supportive of those they know who are jobless. Many will not approach their loved ones for help due to the Asian mentality that doing so will cause them to ‘lose face’.

Many unemployed people would rather suffer in silence than seek assistance. Their loved ones and friends should take the initiative to offer help.

Jobless people should not be afraid to seek help from government agencies. Many people I know who sought help found themselves in retraining classes, which is better than staying at home.

As the recession will be a prolonged one and tens of thousands of Singaporeans are expected to lose their jobs, let us help one another and offer whatever support we can to those who are down and out.

Gilbert Goh

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