The sustainability of consumer credit growth in late twentieth century Australia

This article reports on a study about the use of credit by Australian consumers between 1980 and 1996. Considerable growth in the use of credit by consumers was coupled with an increasing reliance on credit to finance purchase transactions as consumers’ other sources of purchase finance became depleted. An increasing number of consumers were found to be experiencing difficulty meeting their debt‐ servicing commitments. These results suggest that the growth in use of consumer credit that has occurred in Australia may not be in the long‐term interest of consumers or the economy.