AUSTRALIANS  BEWARE OF EASY CREDIT

Australians applied for nearly a million credit cards in the first three months of this year (2006) as new low interest rate offers gained popularity. While it may seem that consumers are taking on extra cards and therefore extra debt, the trend towards lower rates should in reality help ease the debt they accumulate. Figures on display from credit history assessor Baycorp Advantage, show a record 959,894 applications for credit cards in the march quarter (2006). This was about 200,000 more applications than the same time last year.

Australians are trading on debt, as of May 2006 the total personal credit card debt was $37 billion with approximately $22 million of that debt being more than three months overdue. Remember these amounts accrue at an average of 15% interest. If you consider also the ability to service this debt is proportionate to family/ individuals income, where casual employment has now increased to 37% of the workforce, and the real unemployment figure is approximately 14% of adults and 28% of youth between 18-26 years. This debt situation gets worse, if you look at the R.B.A (Reserve Bank of Australia) figures of personal debt at $760 billion as at Febuary 2006.

Australians beware of your easy credit options!!