Credit and loan applications fall 15 per cent
Credit card and personal loan applications fell by around 15 per cent in January compared to the same time last year, the fourth monthly consecutive decline in credit card applications, according to Veda Advantage’s consumer credit demand index.
Credit card enquiries in January fell by 13.5 per cent while personal loan applications plunged 16.8 per cent. Credit applications fell by 9.1 per cent in the last quarter of 2008, while personal loans fell 15 per cent.
The chief executive of Veda, Rory Matthews, said Australians remained wary of taking on debt in the current environment. Credit card defaults rose through 2008 before dropping off towards the end of the year.
Matthews said 1.5 million Australians are spending 50 per cent of their income repaying debt, and he urged people to take control of their finances to avoid defaults.
Bankruptcy levels rose by 6 per cent in the final quarter of 2008 compared to the same period last year.
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