Aussies take 326 days on average to pay off an outstanding balance on a personal loan, Credit Simple says
According to new research by Credit Simple, once a personal loan bill is in default, it takes an average 326 days to pay off the outstanding balance.
Getting specific, men were more likely to default on their personal loan repayment and accounted for 65% of all Aussies who hadn’t paid their bill.
Credit Simple Chief, David Scognamiglio said men’s higher number of defaults came down to two big factors. One; in older households, accounts and household bills were often in the man’s name, and two; in households with younger men (under 35), default was due to immaturity.
“In the younger demographic, men are more likely to default than women before their mid-30s because men tended to mature slower than young women,” he said.
“But overall, women have always seemed to have a better comprehension of creating and living to a budget.”
And while the report revealed that Aussies were defaulting on a number of bills, including telephone and energy, unpaid credit card repayments made up 15% of all unpaid bills with cardholders carrying an average $9,440 unpaid balance.
Back in January, the Australian Banking Association reported that the country had an outstanding plastic balance of $52.2 billion and had spent $325 million on their plastic in the last year alone.
Mozo Director, Kirsty Lamont has encouraged Aussies to exercise other avenues when it comes to paying off multiple debt.
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“Sometimes, debt can get out of control, and it’s often hard to see a way out when you get stuck in that spiral. The good news is, there are plenty of things you can do yourself, and places you can turn for help,” said Lamont.
“A debt consolidation loan can be a good strategy if you have multiple debts, like a personal loan or credit card because it allows you to combine them all into one, easy to manage repayment.”
What’s so great about a debt consolidation loan?
Other than the fact that all your debt will be rolled into one repayment, the interest rate on a debt consolidation loan is 5.47% lower than a regular credit card on average. These types of loans also have shorter terms from 1-7 years, which can help you save on interest and avoid prolonging your debt.
A final feature to mention is that a debt consolidation loan can help you repair the damage done to your credit score, just as long as you stick to your repayments and pay the loan off!
But before many Aussies jump to the task of shopping around on debt consolidation loans, Lamont has a reminder on what makes a top loan.
“Low fees and flexibility are essential to a top value debt consolidation loan. Get yourself onto a loan that allows you to make more than the minimum monthly repayment and you’ll be on your way to being debt-free in no time,” she said.
Ready to make debt a thing of the past? Then make your next stop our debt consolidation comparison tool.