Almost 40% have no loans or credit

Thirty-nine per cent of the Australian adult population do not have any mainstream credit product – a credit card, personal loan or mortgage.

There was a big fall in the number of people with credit cards last year according to a study by the Centre for Social Impact at the University of New South Wales. The study said: “Possible causes may include general economic conditions and new credit regulations.”

The study found that the cost of financial services was a significant barrier. It found the average cost of operating a transaction account was $88 a year, and the average combined cost of a transaction account, credit card and insurance policy was $1794.

It said: “For 12.7 per cent of the population this cost would represent more than 15 per cent of their income.”

Source: Banking Day