Australians are becoming increasingly reluctant to take on more debt in the financial crisis, according to Veda Advantage’s latest Consumer Credit Demand Index.
According to the index, consumer demand for credit card and personal loan enquiries fell by 20 percent in the April to June quarter, compared to the same period last year. The results indicate Australian consumers remain cautious about taking on more debt.
Personal loan applications declined for the seventh consecutive quarter since December 2007, while credit card inquiries decreased by 22 percent in the April to June quarter, compared to the same quarter in 2008.
Veda Advantage general manager Russell Evans said Australians have continued a “conservative approach towards taking on new credit,” with RBA data suggesting consumers are quick to pay down balances on existing credit accounts.
There was a little glimmer of hope, however, for the property market, which saw the number of mortgage applications increase by 28 percent year-on-year (since 2005); fuelled by the Federal Government’s stimulus packages, low interest rates and the first home buyers grant.
