If you have ever checked your credit rating then you are in a small minority among Australians. Despite the availability of this information 80% of Aussies have never checked their credit rating and this may help to explain why 33% are also in danger of defaulting on their debts.
A study by Veda has ranked Australians to determine the financial stability of individuals within different groups. This study found that a very high percentage of Australians are at significant risk of finding themselves in serious financial strife.
A credit default can last on your financial record for five years and this is a mark that will significantly hamper your potential for borrowing in the future. Having a default to your name will present an unreliable image to lenders and if you can secure borrowing then you will likely have to pay a higher rate of interest to reflect the greater level of risk.
