Credit cards and other unsecured loans are being issued at an alarmingly growing rate, as inflation and an ever-climbing interest rate causes economic freefall for many.
Credit bureau Equifax’s data shows that the number of credit cards issued rose 21 per cent in the first three months of the year, compared to the same period in 2022. Personal loans are also up 4 per cent.
On the other hand, mortgages and car loans both fell 11 per cent during the same period.
“We’re seeing that credit cards and personal loans are continuing to grow in terms of demand for short-term and unsecured credit,” Equifax Managing Director for Australia and New Zealand Mel Cochrane said.
“The key point is that while there’s a cost of living pressure, it’s not surprising that people are turning to short-term credit.”
