By Jill Fraser for Lending Central

Veda Advantage’s quarterly Consumer Credit Demand Index, released last week, reveal that mortgage applications increased by 32% in the July to September quarter of 2009 compared with the same period last year, reflecting the highest quarterly increase in mortgage applications in the past five years of Veda Advantage records.

But speaking exclusively to Lending Central Russell Evans, Veda Advantage General Manager Market and Product Development cautions against getting too excited about this spike.

Flash numbers for October show a drop in the number of residential mortgage inquiries.

Year on year the September quarter showed a 32% growth following a June quarter of 28%. But Evans says that a preview of October numbers shows only a 15% growth.
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One in six Australians is already having problems repaying their debt even without the added burden of rising interest rates, a new survey has found.

The research, released by business information service Veda Advantage on Tuesday, also found that more than 20 per cent of people applying for credit during the next six months say they are having difficulty paying debts.

Nearly a quarter of those struggling to pay bills owe more than they did a year ago.

While the majority of families was managing credit responsibly and continuing to pay down debt obligations, a small but sizeable group was struggling, Veda Advantage general manager Russell Evans said.
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Applications by business for credit rose sharply in the second quarter as firms became more confident about the outlook for the local economy, a survey shows.

The Veda Advantage business credit demand index rose 22 per cent in the June quarter, from the March quarter.

Veda Advantage general manager Russell Evans said the result was a sign business credit demand is increasing, albeit slowly, as business starts to re-gain confidence.

“Our credit bureau data indicates some healthy signs, suggesting Australian businesses are starting to regain confidence and are now considering taking on a little more debt,” he said on Wednesday in a statement.
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Australians should limit their applications for credit cards and personal loans in an effort to boost their debt rating, the nation’s largest credit bureau says.

Analysis of Veda Advantage’s database of more than 14.5 million Australians revealed consumers who made many applications for credit were at a greater risk of defaulting in the following year.

Many applications for credit cards over a period of six months lifted their risk of default by 5.2 times in the following 12 months, Veda research showed.

Veda Advantage general manager Russell Evans said Australians need to be aware that enquiring too much for credit harmed their applications.
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Outdated credit laws are allowing debt-laden consumers to keep borrowing, a credit data collection group says.

And one in ten Australians who owe money to lenders intend to borrow more to survive tough economic conditions, the study, by Veda Advantage, also finds.

Of those that say they will borrow more, 15 per cent of this group owe more than they did a year ago.

They also said they were likely to apply for more credit in the next 12 months, the survey, published this week found.
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Australians will still spend significantly on Christmas gifts but will be careful not to go into credit card debt during these tougher economic times, a survey finds.

Research by credit card checking company Veda Advantage shows that 26 per cent of Australians will spend as much as $1000 more on Christmas presents this season than they did last year.

The survey found that a further 32 per cent will spend the same amount on presents as last year.
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