The number of Australians struggling to pay their credit card bills is small and showing few signs of growth, despite repeated interest rate rises, the soaring cost of living and a softening economy.
It is worth listening to because Beregi has no vested interest in talking up the consumer. It is actually bad for his business – fewer bank customers in arrears or defaulting on loans means fewer customers that the banks need to offload to his company Credit Corp, which specialises in chasing up otherwise written-off debts with repayment plans.Beregi says the distressed customer universe is about half as big as it was before the pandemic, and is not showing any signs of re-growing.
It’s also in stark contrast to the United States, where savings buffers are nowhere near as big, outstanding credit card balances are 13 per cent more than pre-COVID levels and the distressed end of the consumer market is under even more pressure. The US has been battling its own cost of living problems, much the same as Australia’s, which prompted an even greater increase in official interest rates.
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Source: FinancialReview - 🏆 2. / 90 Read more »
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