DRAWING a comfortable salary as a manager in an engineering company, Mr Lim (not his real name), who is in his 40s, never dreamt he would become bankrupt.

His financial woes began after he sold his five-room flat in 1996 and upgraded to an executive flat. The monthly instalment was $1,800.

But he and his wife began chalking up high credit card bills from purchases such as a $10,000 hi-fi set. They also lent money to relatives.

Three years later, his wife, who worked as a telephone operator, quit her job after giving birth to their third child.

Mr Lim's income of $4,000 soon proved too little to sustain the family's lifestyle.

He started using one credit card to pay for the bills of another. At one point, he paid over $7,000 in monthly interest. His total debt came to over $160,000, owed to 12 creditors.

'I thought I could just spend. I did not think about the future,' he said.

In 2004, after reading about a couple who killed their children and then committed suicide over debt problems, he decided to contact Credit Counselling Singapore. But even with its help, he had to file for bankruptcy in 2006.

The Lims have returned to living in a five-room flat. Mrs Lim works as a food seller.

Mr Lim has kept up his monthly debt repayment of $600 and hopes to be discharged from bankruptcy in 1 1/2 years' time. 'I take it as a lesson learnt,' he said.

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