Generation X is most exposed to debt problems
GENERATION X, being people aged between 30 and 50 are struggling with debts more than any other sector of the Australian population. In fact experts are believe that these people can well be renamed to Generation Debt.
A new survey for bank RaboDirect found approximately 40 per cent of Gen X say their financial situation has declined over the past 12 months, one-third dont have enough emergency money to last more than two months, and one-third regularly only just manage to make it through to their next pay day. These people resort to maxing out credit cards, borrowing from family and friends as well as apply for payday loans to help them survive from payday to payday.
Gen X makes up about 40 per cent of the Australian population, according to the last Census, or about eight million people, which make them an influential group, RaboDirect general manager Greg McAweeney says.
Close to 2.5 million Australians in this age group always feel like theyre behind in payments and are only falling further into debt every month.
Debt recovery company Dun & Bradstreet also says Gen X is weighed down by their high levels of debts.
For years we have been talking about whether Baby Boomers have been saving enough for their retirements but not enough attention has been paid to the fact that Gen X is carrying more personal debt than any other previous generation at a similar age, Dun & Bradstreet chief executive Christine Christian says.
Around 40 per cent of Gen X said they would find it difficult to meet their loan repayments, with a similar proportion reporting they would use their credit card to buy something they otherwise couldnt afford. Once the credit cards are maxed out borrowers look at debt consolidation to reduce monthly repayments however often this becomes a never-ending cycle of more debt.
Data from survey company TNS Consultants found 30 to 50-year-olds have a high incidence of home loans and other borrowings compared with other age groups.
Around 66% have a credit card but in terms of repayments, this group is more likely to just make the minimum payment. This eventually brings their credit card debt into levels they can no longer afford. Given the declining values of property, borrowers who wish to consolidate credit card debt into their mortgage are finding that they either do not have sufficient equity, or sufficient income to be able to do so.
Baby Boomers are the most confident about their finances, the survey found. They know what the current interest rates are and they find dealing with their finances less stressful.
Similar Posts:
- Personal Bankruptcies are down on prior figures
- Student Loan Responsibility
- Teenagers `scared of debt`
- Easiest method to qualify for a personal loan
- Credit Card Companies Targeting Consumers with Lower Credit Scores
