HIGHER percentages of young adults and divorcees are either missing credit card payments or paying only part of the sum owing and carrying over the rest.

This pattern has emerged in the latest data, as at March, from the Credit Bureau of Singapore (CBS), which tracks consumer credit behaviour in the Republic.

CBS general manager Mark Rowley said the analysis of divorced and separated consumers reflected the cash-flow strain a marital split can have on an individual's financial position.

But of greater concern was the reckless approach of young adults, he said. 'We need a continued focus on financial education, especially for young adults showing a higher propensity to go delinquent, even though they have a lower credit limit now compared to older consumers.

'This is more pressing given that their credit limits are likely to rise in the future in line with their working income.'

Mr Rowley added: 'It is vital that this rising class of working adults understand the importance of monitoring their financial health and maintaining a healthy gap between income and expenditure.'

The CBS data showed that 1.38 per cent of consumers aged between 21 and 29 had an account that was 30 days overdue.

That figure was well above the 1.27 per cent of consumers from all other age groups.

The proportion was also higher in the case of those who missed payments by 60 and 90 days, CBS said yesterday.

In the case of those who did not pay their credit card balances in full, or who rely on what is known as revolving credit, the percentage of young adults rose to 33.56 per cent this year from 32.57 per cent last year.

For consumers in the older age groups, the figure fell to 38.76 per cent from 38.8 per cent.

Divorcees were also more likely to miss payments and revolve credit. CBS said 1.98 per cent of divorcees compared to 1.37 per cent of singles had an account that was 30 days overdue.

A third more divorcees had accounts that were 60 days overdue, and twice as many had one that was 90 days overdue.

Divorcees and those who are separated are also more likely revolvers of credit, with 52.06 per cent of divorced and 42.53 per cent of separated persons doing so compared to 39.03 per cent and 37.43 per cent of married and single people, respectively.

The data also showed that women are less likely to revolve their balance and to miss payments and tend to have lower average overdue balances compared to men.

Mr Rowley said this could be attributed to women having fewer accounts on average compared to men, which made it easier to manage their finances.

'But it may also be because they are just more prudent and organised,' he quipped.

nicholas@sph.com.sg

GROWING ISSUE

'We need a continued focus on financial education, especially for young adults showing a higher propensity to go delinquent, even though they have a lower credit limit now compared to older consumers.'

MR ROWLEY, CBS general manager