Aussie credit enthusiasm 'refuses to wane'

The desire for Aussie credit is not letting up, one writer has noted.

The Australian love for Aussie credit is refusing to wane, according to one writer.

In a piece for the Age, Catherine Cashmore noted that people in debt point towards many reasons as to why, such as foreign investment and immigration.

But there is also evidence to reveal that individuals are in difficulty due to a lack of ability to change their lifestyle and save cash.

And she cited data from Veda Advantage which revealed that the largest increase in credit card ownership came from those aged between 18 and 24 - and using credit has gone up by 6.1 per cent, mostly as a result of entertainment and dining out.

However, Ms Cashmore added: "While borrowing to invest is wholly acceptable, taking on debt for life's 'necessities' (computer, mobile phone, etc) is never recommended."

Financial issues could also hinder Aussies from purchasing their own property, but the government launched a national first-home buyer deposit savings scheme - a no-tax saving account - earlier this year in order to make it easier for young people entering the housing market.

Nevertheless, take-up has not been as high as predicted with only 15,300 accounts created compared to the 750,000 that were forecast.

This news comes after research published earlier this month stated that generation Y individuals - aged between 18 and 30 years old - are more likely to switch their transactions accounts compared to older people, according to a report by Datamonitor.

And the group also prefer to take out savings accounts with the four major banks.

But Ms Cashmore noted that this demographic has a mental addiction to Aussie credit which will not allow them to save - "They want it now, or not at all".

She observed: "I mention this because the latest market research shows the only way our younger generation feels able to purchase homes is when given a deposit by family or friends."

By Emma North