2.3 million Australians are at risk of facing a credit default in the next 12 months a study by Veda revealed. A high number of Generation Y are in danger of credit defaults, with 23% potentially facing financial difficulties in the coming year.
Veda used credit records to give individuals a score between 0 and 1200 in order to rank their financial position. Young people were found to have the lowest scores, but geographic location also had an impact. Queenslanders and those living in the Northern Territory are most likely to find themselves in financial trouble, according to the recent study.
Debt is a real problem for many and is often entered into accidentally because of poor financial planning. Budgeting and financial awareness are key elements in protecting yourself from debt, but avoiding credit that you cannot afford is important too.
Veda also found that 80% of individuals have never accessed their credit report, which may explain why people remain unaware of the financial trouble they are heading towards.
