There are signs that higher interest rates and a slowing economy are now taking a disproportionate toll on young Australians.
A stark gap in credit stress has emerged between generations with the risk of loan default among Australians under 30 rising much more quickly than for other age groups.
But Barrett Hasseldine, illion’s head of modelling, said a clear divide is now opening between old and young when it comes to the threat of default. Hasseldine said higher rents was a key driver of growing credit stress among younger age groups; illion data shows rents are now about 12 per cent higher than a year ago.A depletion in savings over the past two years and the relatively high interest rates charged on personal loans have also contributed to the growing default risk for under 30s.
That was 9 percentage points higher than the overall rate of underemployment last month which stood at 6.7 per cent .compiled by illion each quarter using banking and credit data from more than 18 million consumers shows default risks rose across the nation in the first three months of 2024 to be 9 per cent higher than at the start of 2022.
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