Aussies 'will find it harder to secure credit'

Increasingly tough lending conditions being experienced by Australian banks mean that many households may struggle to obtain credit in 2012.

This is the view of global investment bank Credit Suisse, which has suggested that banks will cut access to finance in order to protect their profits, the Herald Sun reports.

Analyst at the firm Atul Lele suggested that the tighter lending conditions will result in the recent reduction to interest rates sanctioned by the Reserve Bank of Australia being nullified.

Aussies are becoming more reliant on their credit cards it seems, as a study conducted by the Australian Securities and Investments Commission recently indicated that people owe a huge $26 billion on their plastic, with the average person in debt to the tune of $4,757.

However, this trend could be about to come to an abrupt halt, as Mr Lele believes the purse strings will have to be tightened by many people.

"A key downside risk to the consumption outlook is that households encounter greater difficulty in getting access to finance," he was quoted as saying.

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