Credit Proving A Challenge For Consumers

Dun and Bradstreet Survey

New findings from Dun and Bradstreet Consumer Credit Survey show:

• 27 percent of Australians expect to apply for a new credit product**
• 23 percent of Australians expect a higher level of debt
• 38 percent of people expect to use their credit card to pay for otherwise unaffordable expenses - a figure that has remained elevated since the GFC
• 29 percent of Australians expect to make a major purchase, while 23 percent have decided to delay making a major purchase 
• 34 percent of Australians anticipate difficulties in meeting their credit commitments
• 50 percent of Australians believe a rise in interest rates will have a negative impact on their finances.

Dun and Bradstreet said overall the survey indicates that while Australians have a reasonably strong appetite for credit they are concerned about their capacity to effectively manage debt levels in an environment of rising interest rates.  Expectations of relying on credit cards for otherwise unaffordable expenses and worries about meeting future credit commitments are the strongest indication of this concern.

Also the survey concluded twenty-three percent of Australians expect to have a higher level of household debt by the end of June and 20 percent expect lower levels.  Thirty percent of people with an income of less than $40,000 per annum anticipate higher debt levels.  This compares to 22 percent of people earning $40,000 - $79,999 and 19 percent of people earning $80,000 or more.

We at Mr Home Budget again warn people about getting into additional debt.
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