Christmas – apart from being a festive event, is also one of the most expensive for Australians, according to global ratings company Fitch Ratings. Data shows that Australians lead all countries around the world in holiday spending, at 35.5%, ahead of Italy 32.2% and the United Kingdom at 30.9%.
There is a sad reality behind these numbers, as mortgage repayment defaults shoot up to 0.57% by the end of January as opposed to the 0.4% mark throughout the year. Although people may have different reasons for missing out on their loan repayments, one thing is certain: loan repayment allocations decrease during the holidays.
Trends show that halfway through the year, around July to September, arrears are low as spending is kept at a minimum. Loan repayments, although a concern, is not alarming as 40% of bank clients are a year ahead of their mortgage. The key take from all these, is to ensure that there is a balance between income for personal spending and mortgage payments. Both should be kept in balance throughout the year.
Read more about this on the Herald Sun Money website.