Who wears the debt better?

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October 29 2019
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Aussies owe $1.8 trillion in mortgages and credit card debt, with the average home loan totalling $372,902. So, what sex is the safest bet in paying back debt?

Despite the gender pay gap and men thinking they are better at juggling money than women, women across the board have higher credit scores.

According to the latest Credit Simple Nation Report, women have a stronger credit score in almost every capital city and regional area.

Credit Simple CEO David Scognamiglio said “women should have more confidence in managing their finances because, broadly speaking, they’re doing a better job”.

A credit score is a number between 0 and 1,000 that indicates how creditworthy you are, and how likely you are to pay your bills on time.

Most credit scores are between 300 and 850. The higher the score, the better your credit rating is.

“At the end of the day, your credit score costs you money. On average debt per person in australia, women have a score of 796, compared to only 778 for men,” Mr Scognamiglio highlighted.

Generally speaking, the further south you go, the higher the credit ratings, with the ACT, Tasmania and Victoria being standout performers with regard to debt repayment, while Queensland, the Northern Territory and Western Australia trail the national average.

Of all major cities, the widest gap in credit scores between women and men occurs in Melbourne, where women outperform men by a whopping 27 points.

“That is why, in many cases, women should be able to demand a better deal on home loans, credit cards, insurance policies and electricity prices than men.”

Overall, 65 per cent of Australians don’t know their credit scores, which could be costing hundreds, if not thousands, of dollars per year, the report also flagged.

About the author

Cameron is a journalist for Momentum Media's nestegg and Smart Property Investment. He enjoys giving Aussies practical financial tips and tricks to help grow their wealth and achieve financial independence. As a self-confessed finance nerd, Cameron enjoys chatting with industry experts and commentators to leverage their insights to grow your portfolio.

About the author

Cameron is a journalist for Momentum Media's nestegg and Smart Property Investment. He enjoys giving Aussies practical financial tips and tricks to help grow their wealth and achieve financial independence. As a self-confessed finance nerd, Cameron enjoys chatting with industry experts and commentators to leverage their insights to grow your portfolio.

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