Bankruptcy cases in Singapore have skyrocketed to 462 in March. More bankruptcy cases to come with the bad economy and inflation during Convid-19 Circuit Breaker. The figure eclipses those during the financial crisis in 2008 and 2009, which hovered between 200 and 300. Inflation might lead to more bankruptcies.
How to stop yourself from going into bankruptcy?
Filing for bankruptcy is often viewed as a quick and easy way to get out of debt. BUT THAT’S A WRONG THING TO DO! You can also end up with a poor credit rating, which can result in the inability to borrow money at standard rates for up to 10 years. This may lead to greater debt because the only loans you can get come with a high interest rate.
Fast Debt Recovery #TeamFDR can help you protect your cash flow from bad debt losses.
Filing for bankruptcy doesn’t exempt you from certain lawsuits, eviction or a suspension of your driver’s license if you have unpaid fines.
What is inflation?
Inflation involves Demand pull, Cost-push and Built-in. Inflation is a situation of rising prices in the economy. A more exact definition of inflation is a sustained increase in the general price level in an economy. Inflation means an increase in the cost of living as the price of goods and services rise.
How does inflation work?
Inflation represents the rate at which cost of goods and services increase over a period of time.
What is Demand pull?
When demand for goods/ services exceeds production capacity.
What is Cost-push?
When production costs increase prices.
What is built-in?
When prices rise, wages rise too, in order to maintain living costs.