Powered by MOMENTUM MEDIA
subscribe to our newsletter

Two million at risk of default

New research from Veda has found that 2.1 million Australians are at risk of credit default in the next year.

Released this week, Veda’s second Australian Credit Scorecard report showed that of the 2.1 million people at risk of default in the next year, 601,380 are at high to extreme risk.

Veda spokesperson Belinda Diprose said instances of credit stress could be something as simple as an unpaid bill, credit card or even a loan.

While the majority of Australians have a strong credit rating, there are pockets in certain regions where people are really struggling, Ms Diprose told Mortgage Business.

“It is important for consumers to understand that things that happen now can appear on their credit history and can impact their ability to get credit in the future,” she said.

Advertisement
Advertisement

Veda’a analysis looked at default as a whole, but Ms Diprose said there are probably some warning signs that people can look out for when considering mortgage default.

“If you are looking at customers that are under mortgage stress there are going to be quite a few warning signs before they actually get to the point of defaulting on their mortgage,” she said.

“People will generally default on smaller bills first.”

As a first default, more than 50 per cent of people will default on their mobile phone bill, compared to a mortgage which is less than one per cent, Ms Diprose said.

“The important thing for consumers to remember is if they are struggling to make their repayments, whether it is a mobile phone contract, credit card or personal loan, they should talk to their credit providers because there are often things that credit providers can do to help them out,” she said.

PROMOTED CONTENT


 

Two million at risk of default
mortgagebusiness

Latest News

Australian buy now, pay later giant Afterpay is set to be acquired by a San Francisco payments fintech, in a deal worth approximately $39 bi...

There has been sustained robust growth in home lending driven by strong owner-occupied lending and faster growth in investor housing, accord...

The prudential regulator has launched a week-long consultation on its regulatory approach for banks offering temporary financial assistance ...

Join Australia's most informed brokers

Do you know which lenders are providing brokers and their customers with the best service?

Use this monthly data to make informed decisions about which lenders to use. Simply contribute to the survey and we'll send you the results directly to your inbox - completely free!

How long do you think it should take to discharge a mortgage?

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.