It sucks to talk about bills with Christmas just around the corner. But here we are. If there’s one thing you take away from this article, it’s this: pay your credit card bill. Forgot this year, you say? Congratulations—you’re officially part of a new Singapore record. Unpaid credit card balances have hit a jaw-dropping $9.07 billion in the third quarter of 2025, the highest in a decade.

But it’s not all doom and gloom. Mortgage rates are taking a nosedive, giving homeowners something to smile about. CPF members can look forward to steady returns and a few tweaks, especially if you’re keeping an eye on healthcare savings. And if you’re planning a trip up north, there’s a new digital wallet that could make your journey even smoother. Here’s your need-to-know on this week’s biggest financial headlines.

Psst, missed last week’s issue? View all past editions of What’s Happening This Week? to catch up.

TL;DR Unpaid credit card balances in Singapore hit decade high Singapore home loan rates hit 3-year lows—and may fall further CPF interest rates and Basic Healthcare Sum for 2026: What you need to know Travelling to China? Singaporeans can now use digital renminbi wallets

 

Unpaid credit card balances in Singapore hit decade high

Unpaid credit card balances in Singapore have reached a 10-year record of $9.07 billion in the third quarter of 2025, according to the Singapore Department of Statistics. This marks a significant increase from $5.19 billion in Q2 2021. The main reasons? Experts say it’s a mix of consumer overspending, social pressure to buy prestige items, and the rise of “buy now, pay later” services.

Key points:

Unpaid balances (Q3 2025): $9.07 billion

Previous (Q2 2021): $5.19 billion
Main causes:

Not spending within means

Prestige-driven purchases

If you’re carrying a balance, remember that interest will quickly add up, so it’s wise to pay off your card in full each month. This trend is a timely reminder to review your own credit habits and set healthy limits.

ALSO READ: Why Paying Minimum on Credit Cards May Cost You In the Long Run

 

Singapore home loan rates hit 3-year lows—and may fall further

Good news for home owners: mortgage rates in Singapore have tumbled to their lowest levels in 3 years, and the outlook for 2026 remains promising, though any further drops may be small. Fixed-rate packages have nearly halved from around 3.1% at the start of 2025 to 1.4–1.8% now, following rate cuts by the US Federal Reserve.

At a glance:

Start of 2025

December 2025

3.1% (fixed)

1.4–1.8% (fixed)

SORA: 3%

SORA: 1.2%

Both fixed and floating rates are now at their most affordable since 2022. If you’re thinking of refinancing or buying a home, it’s a great time to review your options.

ALSO READ: SORA Home Loans 2025: What Homeowners Need to Know Now

 

CPF interest rates and Basic Healthcare Sum for 2026: What you need to know

The Government has announced that CPF Special, MediSave, and Retirement Account (SMRA) interest rates will stay at 4% per annum for Q1 2026. The Ordinary Account (OA) rate remains at 2.5%, with HDB loan rates fixed at 2.6%. On top of this, CPF members can enjoy extra interest on their savings, with those aged 55 and above getting a higher boost.

In summary

Account

Interest Rate (Q1 2026)

OA

2.5%

SMRA

4%

HDB Loan

2.6%

The Basic Healthcare Sum (BHS) for those below 65 will increase from $75,500 to $79,000 from 1 January 2026. For members turning 65 in 2026, the BHS will be fixed at $79,000. No changes for those already 66 or older.

ALSO READ: CPF Investment Scheme (CPFIS)—Everything You Need to Know About Investing with CPF

 

Travelling to China? Singaporeans can now use digital renminbi wallets

A new pilot scheme lets Singapore travellers open and top up digital renminbi (RMB) wallets—making spending in China more convenient. DBS has also been appointed Singapore’s second RMB clearing bank. This means easier access for local travellers and businesses to transact in RMB.

Why it matters:

Open and use digital RMB wallets in China

Top up from Singapore accounts

Greater payment convenience for travellers

DBS now a key partner for RMB transactions

If you’re planning a trip to China, this digital wallet could make your spending much smoother.

ALSO READ: How to Pay in China Like a Local: 2025 Guide for Foreigners and Tourists

 

That’s it for this week! Stay tuned for next week’s What’s Happening This Week to keep up with the latest in finance, business, and beyond. 

This article was first drafted with the help of AI and later reviewed and refined by the author.

 

About the author

Valerie Wong has spent over a decade writing across beats including fashion, food, and science. With a background in sociology and limited patience for dull explanations, she now focuses on making personal finance less of a snoozefest. Off the clock, she’s probably bopping to a beat somewhere and holding strong opinions about air fryers.

Issue #53: What’s Happening This Week? Record Credit Card Debt, Falling Home Loan Rates, CPF Updates, and More was first published on the MoneySmart blog.

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