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It sucks to talk about bills with Christmas just around the corner. But here we are. If there\u2019s one thing you take away from this article, it\u2019s this: pay your credit card bill. Forgot this year, you say? Congratulations\u2014you\u2019re 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.<\/p>\n
But it\u2019s 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\u2019re keeping an eye on healthcare savings. And if you\u2019re planning a trip up north, there\u2019s a new digital wallet that could make your journey even smoother. Here\u2019s your need-to-know on this week\u2019s biggest financial headlines.<\/p>\n
Psst, missed last week\u2019s issue? View all past editions of What\u2019s Happening This Week?<\/a> to catch up.<\/p>\n TL;DR<\/a> Unpaid credit card balances in Singapore hit decade high<\/a> Singapore home loan rates hit 3-year lows\u2014and may fall further<\/a> CPF interest rates and Basic Healthcare Sum for 2026: What you need to know<\/a> Travelling to China? Singaporeans can now use digital renminbi wallets<\/a><\/p>\n \u00a0<\/p>\n Unpaid credit card balances in Singapore hit decade high<\/p>\n Unpaid credit card balances in Singapore have reached a 10-year record of $9.07 billion<\/a> 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 \u201cbuy now, pay later\u201d services.<\/p>\n Key points:<\/p>\n Unpaid balances (Q3 2025): $9.07 billion<\/p>\n Previous (Q2 2021): $5.19 billion Not spending within means<\/p>\n Prestige-driven purchases<\/p>\n If you\u2019re carrying a balance, remember that interest will quickly add up, so it\u2019s 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.<\/p>\n ALSO READ:\u00a0Why Paying Minimum on Credit Cards May Cost You In the Long Run<\/a><\/p>\n \u00a0<\/p>\n Singapore home loan rates hit 3-year lows\u2014and may fall further<\/p>\n Good news for home owners: mortgage rates in Singapore have tumbled to their lowest levels in 3 years<\/a>, 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\u20131.8% now, following rate cuts by the US Federal Reserve.<\/p>\n At a glance:<\/p>\n Start of 2025<\/p>\n December 2025<\/p>\n 3.1% (fixed)<\/p>\n 1.4\u20131.8% (fixed)<\/p>\n SORA: 3%<\/p>\n SORA: 1.2%<\/p>\n Both fixed and floating rates are now at their most affordable since 2022. If you\u2019re thinking of refinancing or buying a home, it\u2019s a great time to review your options.<\/p>\n ALSO READ:\u00a0SORA Home Loans 2025: What Homeowners Need to Know Now<\/a><\/p>\n \u00a0<\/p>\n CPF interest rates and Basic Healthcare Sum for 2026: What you need to know<\/p>\n The Government has announced that CPF Special, MediSave, and Retirement Account (SMRA) interest rates will stay at 4% per annum for Q1 2026<\/a>. 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.<\/p>\n In summary<\/p>\n Account<\/p>\n Interest Rate (Q1 2026)<\/p>\n OA<\/p>\n 2.5%<\/p>\n SMRA<\/p>\n 4%<\/p>\n HDB Loan<\/p>\n 2.6%<\/p>\n 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.<\/p>\n ALSO READ:\u00a0CPF Investment Scheme (CPFIS)\u2014Everything You Need to Know About Investing with CPF<\/a><\/p>\n \u00a0<\/p>\n Travelling to China? Singaporeans can now use digital renminbi wallets<\/p>\n A new pilot scheme<\/a> lets Singapore travellers open and top up digital renminbi (RMB) wallets\u2014making spending in China more convenient. DBS has also been appointed Singapore\u2019s second RMB clearing bank. This means easier access for local travellers and businesses to transact in RMB.<\/p>\n Why it matters:<\/p>\n Open and use digital RMB wallets in China<\/p>\n Top up from Singapore accounts<\/p>\n Greater payment convenience for travellers<\/p>\n DBS now a key partner for RMB transactions<\/p>\n If you\u2019re planning a trip to China, this digital wallet could make your spending much smoother.<\/p>\n ALSO READ:\u00a0How to Pay in China Like a Local: 2025 Guide for Foreigners and Tourists<\/a><\/p>\n \u00a0<\/p>\n That\u2019s it for this week! Stay tuned for next week\u2019s What\u2019s Happening This Week to keep up with the latest in finance, business, and beyond.\u00a0<\/p>\n This article was first drafted with the help of AI and later reviewed and refined by the author.<\/p>\n \u00a0<\/p>\n 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\u2019s probably bopping to a beat somewhere and holding strong opinions about air fryers.<\/p>\n Issue #53: What\u2019s Happening This Week? Record Credit Card Debt, Falling Home Loan Rates, CPF Updates, and More<\/a> was first published on the MoneySmart blog<\/a>.<\/p>\n MoneySmart<\/a> makes it easy to take control of your finances. Stay in the loop\u2014follow us on Instagram<\/a>, Telegram<\/a>, TikTok<\/a> and Facebook<\/a> for the latest on personal finance.<\/p>\n Ready to find the best personal loans<\/a>, travel insurance<\/a>, investments<\/a>, or credit card<\/a> offers in Singapore? Compare them on our site now.<\/p>\n \u00a9 2009-2025 MoneySmart. All rights reserved.<\/p>\n
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