Australian banks have landed themselves in hot water with a new report accusing them of recklessly encouraging consumers to take on debt.
How often have you received a letter in the mail inviting you to increase your credit card limit or take up a new credit card offer? How often have you wondered how on earth you could afford to manage or pay off that offer?
Well, chances are, you probably have… very often, according to The Australia Institute’s latest report Money and Power, released today.
According to the report one in two Australians received an unsolicited offer to increase their credit card limit in the past 12 months.
Two out of every three respondents to the survey also reported receiving an unsolicited offer for a new credit card, while most worryingly a majority of respondents who were not in paid employment also received offers for new credit cards.
While credit cards and personal loans can be useful when managed correctly, any excessive use of them can be potentially very damaging – particularly for those with little experience in managing debt.
Personal debt can also offset any well-intended saving, so if you receive one of these offers in the mail steer clear and keep your eye on the prize – your first property!