Latest figures show that more Singaporeans below the age of 35 are succumbing to the debt trap - in fact, the numbers of these young debtors have jumped almost 50 per cent in the last four years.

Law firm Wlaw's analysis of data on debtors showed that in the first eight months of the year, 7328 people below 35 were issued writs for overdue debt - a 46 per cent jump over the 5019 in 2000, the Business Times reported.

These people are usually handed writs sent by lawyers on behalf of their clients, like banks, finance companies, credit card companies and licensed money lenders.

One lawyer, Mr Tan Keh Whoo, director of Advent Law Corp, also told the newspaper that many of the debtors are barely of borrowing age, some even born in 1981, and who live in the new HDB towns.

Lawyers familiar with people in financial trouble say the trends reflect the demographics.

Those in default would most probably be couples getting hitched and moving into their first home, usually in the new HDB estates where the flats would be the cheapest.

'The pressure of getting married, getting a car, renovating, wedding costs... everything comes together,' said Mr Tan.

It is not uncommon for them to take an unsecured facility or overdraft to help pay for a wedding. This is on top of loans for renovation and furniture and fittings. It doesn't help that many do not hold back on their budgets for both the wedding and renovations.

Before long - especially if the borrower loses his job - the repayments will no longer be sustainable.

Financial planners the New Paper spoke with have this advice for young people to avoid getting into this debt trap:

The best way to make sure these scenarios don't happen is that a person's debt level should not be more than 50 per cent of their total assets.

Another good, and logical way, to avoid this trap would be to save up at least 10 per cent of one's income, said financial planner Patrick Sim, 30, whose clients are mainly young professionals below 35.

He added: 'One of the better ways is also to go and see a financial planner or adviser, as many do not charge any fees for giving advice.

'The most important thing to slowly minimise your debts is to have a clear picture of where your money goes to.

'But the only way to clear those short-term debts is really to cut down on your living expenses.'

As for which young people tend to overcommit themselves, he also noted that it was the lower-level engineers and IT professionals just starting out in their jobs.

Interestingly, those interviewed by the Business Times also showed that the financially-troubled young are more savvy in dealing with their problems unlike the older ones.

Lawyers said they were more responsive and offered their own repayment schedules, for instance, and are even quick to approach their Member of Parliament for help.

Couples too are increasingly facing legal action jointly, according to the Wlaw survey.

Husbands and wives made up 1,186 of the two or more debtors with the same address this year, up 45 per cent from 2000.

Newly-married couples usually pick flats in the new HDB estates as they would be the cheapest.

Indeed, the Wlaw study showed more writs of summons for unpaid debt going to HDB addresses - among the worst-hit were those living in newer estates like those in Sengkang new town.

The survey showed the number of writs sent in the first eight months of this year alone hit 17,637, only 1380 less than last year.

And experts say they expect this year's numbers to top last year's.

In the first seven months of this year, 2529 individuals were declared bankrupt, a jump of 22 per cent over the year-ago period.

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