Picture: ELLA PELLEGRINI

THE days of easy credit may be gone, but regional areas are better positioned to absorb the financial shocks, according to a leading Australian financier.

Founding chairman of Aussie Home Loans John Symond, in Bendigo yesterday to open its new Hargreaves Street operation, said the international credit squeeze and interest rate rises were having the most serious consequences for borrowers who relied too heavily on debt to fund purchases.

‘‘I have never ever been a fan of borrowing 100 per cent (of the value of property),’’ he said.

‘‘But lets face it, as a country we have become better at spending than saving.’’

He said one consequence people could expect was tighter restrictions on credit, but did not believe the credit crunch would have the same devastating impact on regional cities such as Bendigo as in places where property prices had become inflated.

‘‘I come originally from the country, and the regional Australian has a different attitude to debt and is generally more conservative, lives a more measured lifestyle and they don’t have an attitude they will become instant millionaires overnight.’’

He said the solid, but steadier, growth of real estate in central Victoria had given people more stability.

‘‘In many metropolitan areas people were lured into a false sense of wealth, take Sydney for example, there are a hundred suburbs where the average house price is more than $1,000,000, it’s ridiculous.

‘‘As a nation everyone is suffering, but in areas where people have overextended, like west and south Sydney, there is blood on the streets.’’ He agreed with data released last week by Dun and Bradstreet that indicated young people aged from 25-34 were anticipating higher debt levels and were the most vulnerable.

‘‘They are the most inexperienced and when it comes to taking on new debt they are fearless, they have only known the good times,’ he said.

His said his formula to weather the troubled credit times was a more prudent and informed approach to debt.

He believed the continuing success of his company, that has opened its 26th outlet in Bendigo, was based on filling this gap for people.

‘‘People have to learn to treat debt more seriously,’’ he said ‘‘People need to know how to get out of debt without incurring any more, and for that they need an expert.’’ He said with more than 2000 loan products on the market, his company’s role as a broker was making it even more valuable in difficult times to get the best possible interest and cut unnecessary fees.