Stressed about the economy? ‘Doom spenders’ in Singapore splurge on dining, travel despite debt risk

SINGAPORE – When Joe found out he was going to be a father, he was overjoyed. But as the delivery date approached, he became stressed about the financial responsibilities involved in fatherhood, especially as he holds an unstable job. To relieve his anxiety, he went shopping.Financial consultants tell The Straits Times that they are seeing more of such spending habits afflicting people in their 40s and the so-called Henrys – high earners and not rich yet.

Such emotional spending includes retail therapy which involves shopping to ease personal woes like a breakup or a bad day at work, and doom spending to cope with stress over the economy and the state of foreign affairs such as climate change, geopolitics and violence. Over the same period, large loan applications above $10,000 have grown close to 30 per cent and now account for nearly three in five lifestyle loans.

For instance, Joe may feel pressured to thank his wife with a babymoon, a vacation taken by a couple before the birth of a child. This can be a stay at a local hotel or a more lavish one overseas that comes with prenatal spas and in-house photographers to capture unforgettable moments and the baby bump.

This option to settle the bill over time by dividing the purchase amount into smaller equal payments lulls many into believing they can afford expensive items. “Nonetheless, there may be pockets of consumers that risk becoming over-indebted due to overspending,” the spokesperson noted. “As such, it is important that individuals monitor their spending and do not make purchases on credit unless they are able to repay on schedule.”

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