Aussies are increasingly keen to get out of debt

Aussies are increasingly keen to haul themselves out of arrears and are paying off their debt at a much faster rate than in previous years.

According to Westpac's acting chief operating officer Jim Tate, the global financial downturn has forced people to take a more cautious approach to their spending, the Australian Associated Press reports.

Government figures released earlier this year suggested that the country is sitting on a total credit card debt of more than $36 billion, but many analysts feel that this is a conservative estimate.

Mr Tate told an inquiry in Sydney that although households have drifted further into the red in recent years, Aussie mortgage holders are making a far more concerted effort to pay off their debts quickly – which makes sense while interest rates are relatively low.

"People are paying off debt actively, twice as fast as they have been over the past 30 years," Mr Tate was quoted as saying.

Have a question about home loans? Ask the money gurus at Mozo Answers.ADNFCR-1761-ID-801425208-ADNFCR