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.
Recommended for you
ASIC has launched court proceedings against the responsible entity of three managed investment schemes with around 600 retail investors.
There is a gap in the market for Australian advisers to help individuals with succession planning as the country has been noted by Capital Group for being overly “hands off” around inheritances.
ASIC has cancelled the AFSL of an advice firm associated with Shield and First Guardian collapses, and permanently banned its responsible manager.
Having peaked at more than 40 per cent growth since the first M&A bid, Insignia Financial shares have returned to earth six months later as the company awaits a final decision from CC Capital.
