There has been a nearly 11% increase in people defaulting on payments in the last year, partly due to people struggling to pay off goods bought on easy credit terms, Veda Advantage says.At least 220,000 people defaulted on payments over the last year, up
There has been a nearly 11% increase in people defaulting on payments in the last year, partly due to people struggling to pay off goods bought on easy credit terms, Veda Advantage says.
At least 220,000 people defaulted on payments over the last year, up 10.8%.
"People who take out loans tend to start to blow out about 18 months down the track," Veda Advantage managing director John Roberts said.
"Especially when you are doing interest free, no deposit, payment-holiday type deals. When the first payment anniversary comes due, that's when people are normally going to default."
Defaulting on payments made it difficult for people to obtain credit in the future.
There had also been a 3.3% decline in loan and credit applications, and an 8.4% drop in credit card applications.
