Interest rates set to bite as households prepare to take on more debt: The latest Dun & Bradstreet Consumer Credit Expectations Survey reveals that one in five households expect their debt levels to increase in the coming months, 23 percent expect to apply for new credit and 13 percent intend to make an application for a limit increase on a current account. Meanwhile, 49 percent of households are indicating that an increase in interest rates would negatively impact household finances.
The survey found that certain demographics (18-49 years and those families with children) are more likely to experience financial stress, with these two groups having significantly higher proportions of people anticipating a need to use credit to pay for otherwise unaffordable expenses and indicating that another interest rate rise would negatively impact their household finances. Of concern, these are the same groups that are intending to make major purchases in the months ahead and they are more likely than others to fund their purchase using an interest free deal. To read the full story click on the link: D&B Australia Media Release