The household debt rates have reached high levels across developed nations, with some countries showing debt levels approaching 170% of annual income. A new study examining household debt-to-income ratios across multiple countries found that Singapore maintains notably healthy financial metrics in this regard.
The research examined official economic data, including household debt levels, GDP figures, population statistics, and average salaries from multiple countries. The study calculated how much debt the average person owes compared to what they earn annually, creating debt-to-income ratios that show which nations have sustainable borrowing levels and which face potential financial risks.
Here’s how Singapore’s debt-to-income ratio looks:
| Metric | Amount |
| Household debt per capita | $39,664.94 |
| Average Yearly Net Salary | $52,897.68 |
| Loan-to-income ratio | 74.98% |
| Annual surplus (Income – Debt) | $13,232.74 |
You can access the complete research findings here.
Singapore demonstrates a 74.98% loan-to-income ratio. This means that Singapore residents owe significantly less than their annual earnings. With $39,665 in per capita debt against an average yearly salary of $52,898, Singaporean households maintain a surplus of $13,233 between income and debt obligations.
Compared to debt-heavy nations that dominate the global rankings, Singapore’s position looks stable. Norway ranks first as the world’s most loan-dependent country, with households owing 169.79% of their annual income, meaning the average Norwegian household carries $30,674 more debt than yearly earnings. Similarly, Australia, which ranks second, shows households owing 163.37% of annual income, creating debt burdens of $27,288 beyond yearly earnings.
The city-state also positions well when compared to other affluent but small nations. Switzerland, despite having the highest per capita debt globally at $124,786, posts a 143.75% debt-to-income ratio. Luxembourg, with $87,235 per capita debt and $72,789 yearly salary, shows a 119.85% ratio.
“Singapore represents what sustainable household debt shall look like in a developed economy,” says a loan company spokesperson. “While many other developed nations face a potential household debt crisis, where families owe significantly more than they earn annually, Singapore demonstrates that high living standards don’t require unsustainable borrowing. The city-state’s 75% debt-to-income ratio creates a model other nations might study as they address their own debt sustainability challenges.”