Debt stress is on the rise

Debt stress is on the rise in Australia and is now back to September 2008 levels, a new report has found.

According to Veda Advantage’s bi-annual Australian Debt Study, 82 per cent of Australians are worried about their ability to repay debt over the next 12 months – up from 76 per cent in September 2009.

In addition, the study, which was carried out by Galaxy research, revealed that one in seven Australians have missed a minimum bill repayment in the past three months. Of those who had missed a repayment, one in ten said they are looking to take on more debt in the next six months.

Chris Gration, head of external relations at Veda Advantage, said a new credit reporting system is needed to help lenders reduce the debt burden for Australians who choose to compare credit cards and other lending facilities.

Meanwhile, it was reported last week that retail sales fell in February, suggesting Australian shoppers are feeling less confident about spending big on the high street.

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