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With credit overexposure at record highs, bad credit is becoming an increasing trend in Australia. A high number of people are spending more than they actually earn and are relying on personal credit to sustain and maintain their lifestyle.
A major contributing factor to the problem can be attributed to the ease of credit which has seen a record number of families lose their homes simply because they could not afford the mortgage to start off with. The rise of general consumables such as food and petrol has seen an upward spike in bad credit applications.
In 2009, more and more Australians will find themselves in similar positions, and will struggle with sustaining a lifestyle which is totally beyond their means. Disposable income for a lot of families is at an all time low forcing them to substitute income by way of credit. This credit epidemic will soon bite back and will create more problems for these families.
The first step to finding the right solution is to dig deep and look for the source of the problem. Australian’s who find themselves in this situation need a solid plan of attack to alleviate the hardship and diffuse the pressure that stems from credit vulnerability. There are state funded and independent credit counselling initiatives or programs available to assist borrowers who are facing credit difficulties.
Seeking help is the first step to any problem and getting help will assist in easing some pressure.
About the Author
Petros Arvanitis is a specialist mortgage planner who has helped hundreds of Australian’s rebuild their credit, lower their repayments and plan for a brighter future. He is the founder of Why Group, providing Australians with a simple and fresh approach to financial services.
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