Financing Investment Losses with Credit Card

Matthew is a 46-year-old Senior Engineer. He earns an income of $84,000 a year and owed a total of $115,000 to 9 financial institutions. The main cause of indebtedness was due to investment losses.

The interview:

CCS        : How did using credit cards got you into a problem of debt?

Matthew : I traded in stock and shares and incurred about $85,000 losses. I also spent on lifestyle such as buying branded goods, personal grooming courses, and clubbing.

CCS        : Can you share more about what happened?

Matthew : I attended a few investment courses, opened trading accounts, and traded in both local and international stock and shares. Most of the time, I traded on short term basis by buying and selling within the day through margin trading. Unfortunately, I suffered losses when the market turned against my trading strategy, and I had to draw from credit cards to top up the margin to continue trading.

CCS        : How did you realise you may have a credit card debt problem?

Matthew : I realised I have a credit card debt problem when my monthly salary is not even enough to repay credit card bills!

CCS        : Did you share your debt problem with anyone?

Matthew : I shared with my family. They tried to help me financially, but the amount is still not enough to repay my debt.

CCS        : What prompted you to seek assistance from CCS?

Matthew : At first, I applied and qualified for a scheme called Repayment Assistance Scheme (RAS) which I came across in the media. However, I could not sustain the RAS monthly payment to the financial institutions too! A bank officer from one of the banks referred me to CCS to work out a DMP so that I can repay my debts in an orderly and manageable manner.

CCS        : How did you manage to make yourself stick to your repayment arrangement?

Matthew : I must be watchful of my expenses, spend within my budget and follow the repayment schedule worked out by CCS.

CCS        : What do you intend to do with the monthly instalment amount after you have completed your DMP?

Matthew :  I will save the amount towards my retirement.

CCS        : Please share a word of advice to people who are facing a debt problem.

Matthew : They should not hesitate to approach CCS to work out a DMP even though their credit facilities will be terminated by the financial institutions.

DMP will help them (come up with a budget to) manage both the monthly expenditure and monthly repayments.

An interview with a CCS Client – This is the eighth of a series of interviews conducted with Credit Counselling Singapore’s (CCS) counselled clients on our Debt Management Programme. 

Profile of the client is presented based at the time the person approached CCS for assistance, which could be as recent as a few months ago or several years ago.  Name of the interviewed client has been changed. 

These interviews will be published on the 3rd Friday of the month.

Credit Counselling Singapore

Published 17 March 2023.