One third of Australians expect higher debt levels in the coming months, and as a result, are turning to credit.
“Over the last four quarters we have seen fears of increased debt levels continuing to escalate across the board,” says Christine Christian, CEO of Dun & Bradstreet.
“However the latest survey reveals that a clear gap is developing between different segments of the community. The considerably increased debt levels expected by blue collar households, and those with families, show that high interest rates and fuel, food and energy price rises are hurting the hip pockets of some demographics more significantly than others.”
Thirty percent of households with children say they will turn to credit cards to pay for currently unaffordable items.
“That a substantial number of Australians have signalled they will need to use credit to get by in the coming months provides a strong warning to lenders that thorough credit checks must be conducted prior to the extension of funds to ensure consumer over indebtedness is prevented.”