MORE FAMILIES LIVING ON CREDIT, SURVEY FINDS

Written on the 21 March 2012

 MORE FAMILIES LIVING ON CREDIT, SURVEY FINDS

A GROWING number of Australian families are turning to credit cards to cover increasing costs of living.

With rising unemployment and soaring petrol and utility prices, 41 per cent of households with children now rely on credit cards to cover daily living expenses – up 2 per cent since late last year according to the survey by finance consultancy firm Dun & Bradstreet.

The survey found the majority of Australians still prefer using cash savings to make major purchases, but still flash their plastic increasingly to cover everyday expenses including groceries.

An estimated 15 million credit cards are in circulation across the country with a further 36 million debit cards used on a regular basis.

The average Australian credit card balance is around $3300, with credit and charge card users collectively owing nearly $50 billion from outstanding transactions according to the Reserve Bank of Australia.

Although interest rates have remained stable in recent months, a third of families say they struggle to manage existing debt levels, with 25 per cent admitting they would forego a mortgage repayment if they ran short of cash.

Not surprisingly, lower income households are feeling the most pain.

Nearly half (46 per cent) of all low-income households expect difficulty in managing existing debt, an increase of eight percentage points since the end of last year and 11 points above the national average.

A third of all lower income households expect the situation to worsen in coming months.

Electricity bills and pay-TV accounts were nominated as the first bills most likely to go unpaid by families under economic hardship.

Despite the increasing financial strain, more than a quarter of all families say they are considering taking on another credit card or seeking an increase in existing credit limits to help cover rising household costs.


Latest News

BELLAMY'S FINDS EXPORTING BABY FORMULA INTO CHINA IS NO CHILD'S PLAY

BELLAMY'S (ASX: BAL) shares have suffered a 40 per cent drop in value today after the company hit a regulatory...

BRISBANE WATCH BRAND ADINA AIMS FOR ICONIC

ADINA watches is at a turning point in its history, 45 years after being founded by Robert 'Bob' Menzies i...

WHY YOU SHOULD CARE FOR YOUR BODY AS MUCH AS YOUR BUSINESS

ENTREPRENEURSHIP is a busy business. It can be all-consuming, but it is important not to neglect your health Y...

BULLETS BACK IN THE BUSINESS COMMUNITY

ALTHOUGH new to the current south-east Queensland sporting landscape, the Brisbane Bullets have a rich basketball ...

Related News

JB HI-FI IS THE GOOD GUY IN $870 MILLION ACQUISITION

ELECTRONICS giant JB Hi-Fi has formally completed its $870 million acquisition of home appliance chain The Good Gu...

ACCC ACTS AGAINST MERITON'S RIGGED REVIEWS

MERITON Property Services is under fire from Australia's main consumer watchdog, after it allegedly engaged in mi...

ACCC FIRES WARNING SHOT TO IVF PROVIDERS

IVF clinics have been put on notice by consumer watchdog, the Australian Competition and Consumer Commission (ACCC...

BIG W CEO QUITS AFTER 11 MONTHS

SALLY MacDonald has resigned as chief executive of BIG W ending her tenure at the helm of the struggling discount ...

Contact us

Email News Update Sign Up Contact Details

Subscribe to our mailing list

* indicates required
Email Format

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter