By Third Party, 25 October 2010
Page last updated at 5:17 AM 25-10-2010
HIGH levels of credit card debt in tight-knit communities such as Avalon has prompted the local church to hold a free money managing course to help people handle their finances.
Australia leads the world on credit card debt, higher even than the United States, and Avalon community leaders are aware of anecdotal evidence of some financial pain in what is regarded as an affluent suburb.
Andrew Blunden, a founding director of Pittwater Businesses Ltd and CEO of Part Time Professionals, said Avalon was such a close community that small business owners were embarrassed to approach their local bank for help with cashflow or when they got into a difficult patch, so they turned to their personal credit card for what they hoped would be short-term relief.
“Credit card borrowing is readily available but it is not the cheapest option and the problem is in danger of escalating for them,” he said.
“They only have to have an electricity bill they can’t pay or get sick and have a bill that requires paying, and if they keep using their personal credit card it can lead to stress.”
David Mackay, principal of L.J. Hooker Avalon, said the property market is coming out of an unstable patch but the big issue for young people was that they were comfortable with debt but not used to high interest rates.
“Generation Y haven’t seen 20 per cent interest rates and don’t understand that’s a danger area,” he said.
He added that real estate had regular cycles of boom and bust years and the Avalon bottom market, between $700,000 and $1.5 million, was hot at the moment.
The Rev Stuart Holman, senior minister of St Mark’s Anglican Church in Avalon, said he had heard of heavy credit card use in the area and the church was keen to help.
The six Monday-evening sessions look at building skills, knowledge and confidence in handling day-to-day finances.
Members of St Mark’s Church, with backgrounds in banking and accounting, are leading the course, which starts on Monday and runs for six weeks.
It’s in the Avalon Recreation Centre, 7pm to 9pm, and is free.
Sourced from Credit Card Guide
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