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Dr. Mark Sinclair
Dr. Mark Sinclair, Mentor Education

Credit card default to hit 2.3 million in 12 months – young people to be hit hardest

6 October 2013

 

 

 

 

 

 

 

 

Credit data provider Veda Advantage has reported that more than 2.3 million Australians will be at risk of credit default in the next 12 months, with young people expected to be most at risk.

According to Veda credit default will hit Gen Y the hardest with an expected 23 per cent potentially facing financial hardship. Queenslanders and Northern Territorians were the most likely states to find themselves in trouble with people living in the Ipswich and Logan-Beaudesert areas of Queensland and Blacktown in Sydney are at the highest risk of credit default. Five per cent of Queenslanders are at high-to-extreme risk of credit default – the highest in the country.

Furthermore it has been reported that Australians in general are finding it increasingly difficult to pay their credit card bills with a 15% of card holders reported as defaulting in August.

As part of the report the data provided has issued a credit summary score pertaining to card holders credit history. The score ranges from zero to 1200, with a higher score indicating a more advantageous credit rating. South-east Tasmania, the Baulkham Hills and Hawkesbury in NSW and the Barossa-Yorke-mid-north region in South Australia have all reported as having the highest scores in the index.

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