Economic downturn could be disastrous for Aussies

Australians will be hoping the country can avoid the huge financial problems that continue to blight Europe.

A new study conducted by Veda has shown that thousands of Aussies will be plunged into debt if the economy suddenly takes a turn for the worse.

The research indicated that up to 750,000 people down under could encounter crippling arrears if there is a downturn.

More than one in five Aussies are already struggling to control their credit card debt and this number will rise sharply if the economy collapses.

If this does happen, 25 per cent of the population would take out extra credit cards or increase their personal loan and mortgage limits in order to stay afloat.

One in three suggested they would have no option but to borrow cash from family or friends to tide them over.

Encouragingly, two-thirds said they have money in savings accounts that they could draw out, while 3.6 million people can call on their superannuation.

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