Credit hangover a danger to wellbeing
New research has revealed that women on low to average incomes are more susceptible to ‘get rich quick’ financial schemes.
According to the Australian Unity Wellbeing Index, women were particularly susceptible at this time of year, meaning women need to be cautious about how they manage “Christmas credit hangovers”.
The results showed women in low-income groups and in debt had higher levels of unrealistic optimism regarding the extent to which increased income would increase their happiness, making them more vulnerable to financial schemes.
Australian Unity head of financial planning Travers Stow said while women were more comfortable with seeking financial advice than men, it also meant the probability of getting bad advice from the wrong source increased.
Travers said as the holiday season meant consumers spending more and accumulating more debt, it is how they managed this debt that would determine their future financial standing.
“In Australia, people can now access no credit check loans, deferred loans and no deposit loans, just to name a few,” he said.
“Unfortunately, a lot of these types of loans come with extraordinary interest rates, which make the repayments a major drain on people’s hip pockets. The stress associated with this kind of debt can take a real toll on wellbeing.
“People should seek reputable, professional advice if re-evaluating their financial situation. Debt consolidation can be an effective strategy, but only when done correctly.”
Recommended for you
Licensing regulation should prioritise consumer outcomes over institutional convenience, according to Assured Support, and the compliance firm has suggested an alternative framework to the “licensed and self-licensed” model.
The chair of the Platinum Capital listed investment company admits the vehicle “is at a crossroads” in its 31-year history, with both L1 Capital and Wilson Asset Management bidding to take over its investment management.
AMP has settled on two court proceedings: one class action which affected superannuation members and a second regarding insurer policies.
With a large group of advisers expecting to exit before the 2026 education deadline, an industry expert shares how these practices can best prepare themselves for sale to compete in a “buyer’s market”.
