Many Australians suffering from debt stress

By Sabah Karimi

Most Australians are worried about repaying their debts in a tough economy, according to a recent study. And young people are feeling especially anxious. 

The Australian Debt Study, a bi-annual report from data intelligence company Veda, found that four out of five Australians are worried about keeping up with their debts, up from 75 percent in September 2010. This high level of debt anxiety may be related to the recent global economic downturn and Europe's sovereign debt crisis, the Sydney Morning Herald reports.

Many Australians are simply worried that they won't be able to meet their debt obligations in the upcoming year and are feeling the pressure. Others are fearful of the unknown -- losing a job, unforeseen medical expenses and other circumstances that might make it difficult to pay bills.

The most anxious Australians are those between the ages of 25 and 34. Eighty-seven percent are worried about their ability to pay off debt, and they're the most likely to apply for credit in the next six months. Fortunately, they are also the most likely to receive some sort of financial help from a family member or friend to get through a difficult time, the study found.

Maintaining a healthy credit history is critical for a better financial future. Australians have the option to order a credit report from www.mycreditfile.com.au to see a comprehensive listing of all active accounts and reports of late payments. Any errors or mistakes must be corrected as soon as possible because errors in the credit file can have a negative impact on the ability to obtain a credit card or get a loan in the future.

Matthew Strassberg, senior adviser at Veda, points out that applying for credit -- whether it's a personal loan from a bank, a mortgage or a credit card -- is a necessary part of life for many Australians. So having a healthy and accurate credit file needs to be a priority.

Article by Sabah Karimi

Published: January 9, 2012