25 May, 2010
The mortgage and pay TV accounts are least likely to be paid.
One in three Australians have indicated they will pay bills late in the year ahead and one in four households has indicated they would be most likely to miss the mortgage payment if they find themselves short on cash. These findings are from the latest Consumer Payment Priorities Study, released today by credit reporting agency Dun & Bradstreet.
The study reveals that many Australians are unaware of the consequences of paying their bills late, with six in ten (57 percent) individuals saying they’d be more likely to pay their accounts on time if they knew late payments were listed on their credit report and can negatively impact their credit profile. A payment can currently be listed on an individual’s credit record if it is 60 days overdue. However, in a step which will help to ensure that people who are struggling with credit aren’t exposed to more, new credit reporting laws – which have been accepted by the Federal Government – will allow payments to be listed on an individual’s record if they are just one day late.
In addition, the study reveals that younger Australians and those in lower income households are more likely to pay their bills late in the year ahead. One in five (21 percent) older Australians (aged 50-64) indicated they will pay at least one bill late – this compares to one in three for the two younger groups (18-34 and 35-49). Meanwhile, 30 percent of people in high income households ($80,000+) said they expect to pay late in the year ahead – this figure jumps to 37 percent for households earning les than $80,000.
The research also shows which bills Australians would miss if they didn’t have enough money to pay all their commitments1. The pay TV account and the mortgage came out on top, with 33 percent of Australians saying they’d miss their Pay TV bill and 25 percent indicating they’d skip their mortgage repayment. The mobile phone and electricity bills followed, with 19 and 17 percent of Australians respectively stating they would miss these bills.
