Queenslanders drowning in debt as red ink tips scale at $3bn
QUEENSLANDERS’ personal debt skyrocketed towards $3bn over 2020 as people turned towards payday loans, buy now, pay later services such as Afterpay and shortterm loans to get through the worst recession since the Great Depression.
The sobering figures show Queenslanders added an extra $227m to the red in their budget ledgers, and are revealed as JobKeeper wage subsidies are set to end this month.
Queenslanders had an average of $4038 unpaid on their credit cards at the end of each month by December 2020, well above the national average of $3197, and $500 more than at the start of the year.
Unsecured loans also soared by $800 a person to $8271. There was also an explosion in debt to buy now, pay later services, with the state average more than doubling from $1352 to $2754.
Brisbane residents were among the highest for payday loans, racking up an average of $2222 up from $1894.
Labor’s national reconstruction spokesman Richard Marles said the figures, from Digital Finance Analytics, were startling.
“This situation is even more serious given JobKeeper comes to an end this month. It makes it urgent we hear from the government what its economic COVID recovery plan looks like,” he said. “Simply going back to the way things were before COVID hit is not good enough. These figures clearly show that.”
Oxley MP Milton Dick, who has long campaigned against predatory payday loans, said Queenslanders would pay a huge price and risk getting caught in a debt trap due to inaction on cracking down on the sector.
“This evidence shows we’re sitting on a debt time bomb. It will cause pain for many people for years to come,” he said.
The data showed net payday loan debt doubled over 2020 to $75m, with Mackay and the Darling Downs showing growth of up to 600 per cent.
The number of households in Queensland using buy now, pay later services doubled from 51,000 to 112,000 over the year.
Fitzroy had the highest average BNPL debt per household of $4302, followed by Darling Downs at $3597 and Far North Queensland at $3189. Credit card debt was worst in the north, with the northwest region having an average unpaid balance of $6250 a person, and $5900 in Far North Queensland.
GOLD Coast brewery Lost Palms finished off the last day of summer in style, launching a new beer with a twist.
The Miami brewery showcased eight sour beers, including a new beverage – Blueberry Pancakes – at Sour Fest, hosted at the Oak Ave venue.
The local crowd enjoyed a live DJ set and plenty of beers on Sunday, with the new brew a popular choice on the warm afternoon.
Head brewer Chris Smith said the event was the perfect way to end the summer.
“Each brewery here on the Gold Coast has their niche and when I got to Lost Palms about two years ago we thought about how we can differentiate ourselves and decided on sour beers,” he said.
“It was something not a lot of people were doing on the Coast but suits the weather here really well.
“It’s super smashful, easy drinking, with usually low ABVs (alcohol level).”
The former carpenter, who has a wealth of brewing knowledge from jobs in many breweries before joining the Lost Palms team, said the turnaround for the sour beers could be up to three weeks.
“With the sour beers, we go through the same process as normal but there’s an extra step involved,” he said.
“We move it over to the kettle and then we add a good bacteria, similar to the bacteria found in your gut, and we leave that for 24 to 48 hours. That drops the pH of the beer and adds that sour flavour, which lends itself to fruits, lollies, coffees and heaps of different flavours.”