Credit can be a fickle foe to manage, particularly when used carelessly, which appears to be what a lot of us are doing. How can I make such a sweeping assumption, you ask? There are over 32 billion reasons why, and that’s only our credit cards.
So it doesn’t really come as a surprise to learn that young Australians are making errors so detrimental to their financial health, they’re paying for it well into their 30s and 40s.
In a survey conducted by credit score providers GetCreditScore.com.au, 40% of respondents said that the financial mistakes they made before the age of 30 had an impact on their quality of life, whether it’s their ability to access loans, financial products or impacting on employability and relationships. 36% say they have been turned down for a credit card or loan because of these mistakes.
And it’s the behaviours around credit that are causing us grief, with 48% of respondents saying they had missed at least one monthly credit card or loan repayment in their 20’s, while 44% had maxed out their credit cards, something that affected their credit score going into their 30s and 40s.
Ready to be better with money?
The question raised, of course, is why are we so damn bad with money that we don’t even have? It all comes down to financial education, or rather, a lack thereof. 67% of those surveyed agree that their mistakes could have been prevented, had they been better taught about personal finance in school or university.
There needs to be much more emphasis on personal financial education moving forward so that future generations can prevent these kinds of mistakes from happening to themselves. Unfortunately for those that have endured the education system in it’s current form, the onus remains on you to educate yourself about money and all of it’s potential pitfalls, particularly when it comes to credit.
Until then, family seems to be the best resource for learning, says 46% of respondents. Only 8.5% are happy with the current system of education.