A new study by credit reporting agency Dun & Bradstreet has found that one in four Australian households indicated they would most likely miss mortgage payments if they found themselves short on cash. The study also found one in three said they will pay bills late in the coming year.
The Consumer Payment Priorities Study, released by credit reporting agency Dun & Bradstreet, revealed many Australians are unaware of the consequences of paying late bills.
More than half of survey respondents said they would be more likely to pay their accounts on time if they knew late payments would be listed on their credit report.
Many people do not realise that a payment can currently be listed on an individual’s credit record if it is 60 days overdue. However, new credit reporting laws which have already been accepted by the Federal Government will allow payments to be listed on an individual record if they are just one day late.
The study also reveals that younger Australians and those in lower income households are more likely to pay their bills late in the year ahead. One in five (21%) older Australians (aged 50-64 years) indicated they will pay at least one bill late – this compares to one in three for the two younger groups (18-34 and 35-49 years).
Approximately 30% of people in high income households ($80,000+) said they expect to pay late in the year ahead, as compared to 37% for households earning les than $80,000.
If you are having problems managing debt, need help with budgeting or have problems with your mortgage, speak to one of the finance advisors at Intellichoice today. Our mortgage brokers can help with a home loan review to ensure your home loan is still the best deal for you. Intellichoice also has professional financial planners to assist with debt consolidation, budgeting and a savings plan.
