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

CROMWELL TRADES STEADILY IN FIRST HALF

CROMWELL Property Group has maintained a steady operating profit at $0.045 per security in the first half of FY17,...

WHY NEXTDC'S STOCK IS SOARING

AFTER posting its interim result, NEXTDC (ASX: NXT) gained more than 12 per cent on the stock market before noon.
...

PWR PROFIT CRASHES AS DOLLAR RISES AND COSTS MOUNT

A RISING Aussie dollar has offset PWR Holdings Limited's (ASX:PWH) overseas growth in the last half, forcing a...

SUPER RETAIL GROUP RESULTS SHINE ACROSS THE BOARD

A WELL-planned and executed half has paid off for Super Retail Group (ASX:SUL) as it posts a net profit result up ...

Related News

EVERYTHING YOU NEED TO KNOW ABOUT THE NATIONAL BROADBAND NETWORK

THE National Broadband Network (NBN) is more than an internet connection, it is an opportunity to transform your b...

WHY EMPLOYEE-OWNED COMPANIES ARE BEATING ASX200 SHARE PRICES

EMPLOYEE-owned companies command a higher share price than their publicly listed peers, reaping a 17 per cent prem...

RISE OF THE MACHINES HAS WORKERS SWEATING

UP TO 3.8 million Australian workers are fearful their job may soon be terminated by a robot, a new survey has shown....

LESS TALK, MORE SMALL BUSINESS ACTION IN 2017

THE future growth and prosperity of Australian SMEs could be undermined if governments lose sight of the sector...

Contact us

Email News Update Sign Up Contact Details
Subscriptions

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter