A third of Aussies 'are constantly in the red'

By Mozo ·

A huge proportion of Australians are continuing to struggle with debt problems in the run-up to Christmas, new research has found.

RaboDirect, the online savings and investments bank, has released the findings of its National Savings and Debt Barometer which, it claims, shows that Australians are "still not addressing the looming impact of ballooning personal credit card debt".

According to the survey of more than 2,000 Australians across all states and territories, about a third feel they are "constantly in the red".

In addition, one in five credit card holders stated that they worry about not paying off their bill in full each month, even though one in six said they are happy to make purchases knowing they cannot pay for it in the interest-free period.

Offering advice to consumers, RaboDirect general manager Greg McAweeney said: "We're looking at a back to basics approach to financial fundamentals – things like proper budgeting, targeted debt reduction or learning to avoid excessive debt in the first place, and having a regular savings plan."

Consumers can better manage their finances by choosing to compare credit cards and other money products before switching to improved options. RaboDirect also found that one in four Australians feel a lack of empowerment over their financial position, while only two in five have sought out and received financial advice.

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