Young Australians 'have an addiction to credit cards'

Wednesday 08 September 2010

Article by Mozo

A significant majority of young Australians are addicted to credit cards and feel unable to save for the long-term, it has been suggested.

Catherine Cashmore, a buyer advocate at real estate firm JPP, claimed that today's Generation Y – meaning Aussies ages 18 to 24 – expect to have easy access to loans and credit.

"Generation Y has grown up in a world of two-minute noodles where email now looks like snail mail," she wrote in a column for the Age. "It's not that they can't save – for a large proportion, their mental addiction to credit simply won't allow them to save. They want it now – or not at all."

Indeed, Ms Cashmore observed that spending on credit by Generation Y has increased 6.1 per cent during this year alone and has been mainly for dining out and entertainment.

The comments suggest that young Aussies are currently much more inclined to compare credit cards and spend freely than the rest of the population. According to Ms Cashmore, about 80 per cent of Australian homeowners are older people at the high end of the income scale while more than half of Gen Y members rent and 16 per cent sill live at home.

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