Home loan repayments and rent are hurting struggling borrowers much more than high petrol prices, data from Australia's largest privately owned debt collection agency shows.
Unleaded fuel prices were approaching A$1.70 ($2.18) in Australia's main cities on Wednesday even before crude oil prices reached a record US$145 a
barrel.
Yet less than 2 per cent of consumers nominated high petrol prices as their primary reason for failing to pay an overdue bill, an email survey of Prushka Fast Debt Recovery's 80 debt collectors taken in June found.
"People perhaps feel that they can do something about it by driving less or making alternative arrangements," Prushka chief strategy officer Andrew Hobday said.
Mortgage repayments were the number one reason why 19 per cent of borrowers broke a default arrangement, entered into when a bill was 60 days overdue.
Falling behind on rent was the top excuse for 18 per cent of defaulters, followed by credit card debt (9 per cent), utility bills (7 per cent), grocery costs and healthcare expenses (both 5 per cent), and school fees (3 per cent).
The data covered 215 borrowers who had broken a default arrangement in June.
Petrol prices ranked equal with council fees. Petrol costs were still a major issue, with 38 per cent of debt collectors saying rising fuel prices would have a major or significant effect on household budgets.
"Going by the anecdotal side of things, as an underlying issue it's big," Hobday said.
- AAP
