Debt Divide: Report Reveals Stark Credit Card Realities
A new report by Singapore-based fintech Roshi illuminates the growing credit card debt across Southeast Asia, revealing stark contrasts in how consumers manage high-interest borrowing. While some countries show strategic credit usage, others face worrying debt-to-income ratios that may signal broader financial vulnerabilities in the region.
According to Roshi’s «Credit Card Debt in ASEAN and Beyond 2025» report, Singapore tops the regional rankings regarding average credit card debt, with balances reaching S$5,335. That figure represents a striking 86% of the average monthly income. However, this high balance is not necessarily a sign of trouble. ROSHI's analysis indicates that Singaporean consumers leverage their access to sophisticated financial tools and competitive card products to manage their credit responsibly.
CEO Amir Nada emphasized that Singaporeans tend to use credit for tactical benefits, such as cashback and rewards, rather than out of necessity. «Our research shows that while Singaporeans are carrying high card balances, they tend to use credit more strategically for cashback and point rewards compared to some of their regional neighbours,» Nada stated.
Debt Risks Surge in Emerging Markets Like the Philippines
In sharp contrast, the Philippines exhibits a far more concerning scenario. There, the average credit card balance is S$2,092, yet the average monthly income is just S$492. This yields a staggering debt-to-income ratio exceeding 425 percent, a figure that flags rising financial stress among Filipino consumers. Such disparities underscore the uneven pace of financial development and highlight the limited access to affordable credit alternatives in lower-income ASEAN markets.
The report warns that without broader access to financial literacy tools and affordable lending products, countries like the Philippines could face long-term economic consequences as households struggle to manage high-interest debts, especially given regional credit card APRs ranging between 25–29 percent.
Regional Trends and Financial Infrastructure
Roshi’s analysis doesn’t stop at debt numbers. The report also explores broader macroeconomic factors such as inflation, interest rate trends, and the digitalization of financial services, offering a holistic view of credit risk across the region. These trends help explain why countries with more mature financial infrastructures, like Singapore and Malaysia, see more disciplined credit usage, while those with nascent systems struggle to contain consumer debt burdens.
In line with its mission, Roshi reiterates its commitment to arming consumers and policymakers with transparent, data-driven insights. The fintech aims to promote smarter financial decision-making by making complex financial data more accessible and actionable for individuals across Southeast Asia.
Credit Culture Mirrors Economic Divide
Roshi’s findings paint a clear picture of a region divided not just by income levels, but by the sophistication and accessibility of financial tools. As Southeast Asia’s economies continue to evolve, ensuring that consumers are equipped with the right knowledge and tools to manage debt will be essential. Credit cards, when used wisely, can empower spending flexibility and rewards, but without adequate education and infrastructure, they risk becoming traps rather than tools.
