Youngsters should 'be careful with Aussie credit'

Youngsters should be careful when dealing with Aussie credit, one industry expert has warned.

Young people need to make sure they are careful when dealing with Aussie credit.

This is according to Brontie Chambers, manager of products at credit union Community CPS Australia, who said the majority of people in their 20's will not have a great deal of savings to fall back on, News Limited Newspapers reports.

She noted that many youthful individuals get into trouble with mobile phone bills, credit cards and interest-free loans which can leave people needing to pay a high interest rate if payments are missed.

"People in their 20's tend to be more focused on gratification today and paying for it tomorrow," she added.

Ms Chambers declared that the amount of credit people take on is important as it can be problematic for several years.

These views were recently echoed by Nicole Pedersen-McKinnon, who wrote a piece for the Sydney Morning Herald that stated being in credit card or personal loans debt is the worst type.

By Nate Sawyer