Singaporeans advise 27yo man with S$10K debt to sell off his car as it’s the “first good step” towards clearing his debt

SINGAPORE: A 27-year-old man with S$10,000 in debt recently asked for advice on social media about the best ways to pay it off.

Sharing his dilemma on r/singaporefi, he explained that he had accumulated the debt over the past year, with S$2,000 owed to UOB and S$8,000 to Amex. To make matters worse, he also bought a used car, requiring him to pay S$1,306 monthly in instalments.

“I am at a lost and I don’t know what else to do. I’ve tried doing lalamove and grabhitch on the side but it is not feasible because the money goes into petrol anyway,” he confided.

“I am working full time with an annual income of 40k. Please advise me on what is the best way to clear this debt as best as I can.”

In the comments section, one Redditor suggested that the man consider borrowing money from family or friends to pay off his debt immediately, highlighting that the high interest rates on his credit cards, ranging from 24-28%, could worsen his financial situation.

He then added, “Just remember to be disciplined and repay back family member loans; even $100 per month will be good.”

Additionally, the Redditor recommended using his car to generate extra income.

He elaborated, “Your car is an asset, albeit a depreciating one. Use the asset to make money via Grab and other PH companies. Work after office hours and weekends. Explore other possible (legal) part-time jobs to supplement income.”

On the other hand, another Redditor proposed a more drastic solution. He suggested that selling the car could be a practical way to alleviate his financial burden. He wrote, “Your car payment is already half your take-home pay. Sell it, man. You can’t afford it. Don’t be a slave to it.”

A third Redditor echoed this sentiment and wrote, “Beggars can’t be choosers. Sell the car and pay off that stupid high-interest-rate debt. People earn 10k also don’t own a car; why do you need?”

Meanwhile, some netizens with experience paying off significant debt also weighed in with their advice.

One Redditor shared, “I’ve been in debt (50k) before during my younger days and took debt consolidation to clear it off. May I suggest that you consolidate your debt into one?

Work it out and clear it. The car may or may not be a need due to your work/lifestyle. I do not know you… you will need to evaluate this yourself. Start going out less and spending only on your needs. You’re going to be ok.”

Another added, “Don’t be disheartened. You are still young and your debt is not enormous. Sell all your non-necessities and do part-time jobs (security/event officers or food catering staff etc.)”

Read also:SG man’s “football betting” addiction leads him to suffer S$44K in debts

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