Rising Debt Levels - Credit Reform
Below is an article relating to credit and debt.
Rising Debt Levels Prompt Credit Law Reform Call
A Queensland university is warning bankruptcies and personal debt levels will continue to rise unless the Federal Government steps in.
Griffith University's Centre for Credit and Consumer Law says credit law reform is needed to combat alarming levels of debt among Australians.
Latest figures show Australians owe nearly $28 billion on credit cards and more than $500 billion to banks.
Centre director Nicola Howell says it is a worrying trend.
"Obviously some people are managing their credit fine," she said.
"But for people who are struggling or where they haven't built in a buffer between their commitments, to give them a buffer if their financial position changes, then there's an area of concern there."
Ms Howell says credit law reform could prevent people from falling into poverty.
"There is no obligation on credit providers to check what a person's current financial position is at the time that they offer them an increase on their credit limit," she said.
"So I think placing an obligation on the banks or other credit providers to do that might reduce the risk that people get unmanageable amounts on their credit card."
Date: Unknown
ABC News
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