Taking a loan and paying the EMI regularly helps people in repairing their credit which is so very important. The problem lies in the thinking that the money from a credit card is free money and one can spend on things that are not even necessary as their payment has to be made later after a period of 30-45 days. Yes, there is this big advantage of getting a credit when it is needed but one should treat the facility of credit as an exception rather than a rule and paying only through credit card even if the occasion is a weekend dinner for the family at a restaurant.
Using cash and one’s debit card on most occasions is a good idea as one is aware of the money in his account and he tends to spend wisely. People of Singapore have become materialistic like their counterparts in the western world. However, they have to realize that it is their habit of saving that they need to revive as it ensures one has money when needed and does away with the need to take a loan.