In Oz, Collectors More Likely to Seek the Young

Australian consumers are expecting to see higher levels of household debt in the next three months, with younger consumers especially projecting problems with credit, according to a survey from Dun & Bradstreet Australia.

Across all age groups, 28 percent of Australians expect they will have higher levels of debt by the end of the second quarter. Last October, 20 percent expected to see higher debt levels.

Consumers between the ages of 18 and 34 are showing the greatest signs of trouble with debts. This group has seen its expectations of higher debt rise, with 26 percent now expecting higher debt compared with 15 percent last October.

Twenty percent of all Australians expect to use their credit card to finance purchases they otherwise couldn’t afford, but 28 percent of those between 18 and 34 expect to do so. Eleven percent of the 18 to 34 year olds expect to miss a bill or debt repayment in the next three months.

D&B reports that “an increasing amount of debt referred for collection is related to young Australians.”

These younger consumers also tip the scales in plans to apply for a new credit or loan facility. While 14 percent of all Australians expect to apply for more credit this quarter, 24 percent of those between 18 and 34 expect to, according to D&B’s Consumer Credit Expectations Survey.

Consumer debt isn’t the only debt increasing in Australia. Last week, D&B reported a 12 percent rise in the number of Australian corporate debts referred for collection in 2007, and a U.S. $1,300 increase in the average value of the referred debt ("Corporate Debt Rising in Australia," April 1).