Business Don't miss out on the headlines from Business. Followed categories will be added to My News. A surge in demand for risky and unsecured financial products that could absorb someone’s entire pay packet indicates the cost-of-living crisis is much worse than anyone thought.
Data from credit agency illion shows 45 per cent of Australians have relied on personal loans to cover day-to-day expenses in the past three months. At the same time, research from loan-matching platform Lendela reveals a 70 per cent pike in the share of loan applications from people aged 35 and under. “The first sign we look for when examining the impact of the cost-of-living crisis is an increase in unsecured credit, primarily personal loans,” Jake Osborne, head of Lendela in Australia, said.
“Traditionally those loans are for one-off expenses or luxury items, but what we’ve seen lately is different – 45 per cent of unsecured credit being used to cover day-to-day living expenses. That’s really concerning. “But there’s an even bigger issue that’s being missed.
” More Aussies are turning to risky financial products to make ends meet, as the cost-of-living crisis rages on. Picture: NewsWire / Max Mason-Hubers In addition to loans and credit cards, more and more Aussies are turning to fringe financial products in desperation – and some are completely overextending themselves. The boom in buy now, pay later (BNPL) lending is largely occurring without any transparency, no credit che.