Homeowners are paying off debts at a faster rate

Being in debt is certainly no fun at all and the constant battle to make ends meet is sadly something that many Aussies have become accustomed to.

With the nation sitting on $36 billion of credit card debt, it is unsurprising that a growing number of people are finally starting to take their monetary situation seriously.

The new Financial Stability Review released by the Reserve Bank of Australia is quite encouraging, as it shows that a greater number of homeowners are paying off their home loans at a very fast rate.

Indeed, rates of household saving are said to be "well above" those seen in the 1990s and 2000s, which suggests that many Aussies have learned from the hardships brought about by the global recession in 2008.

"The aggregate debt-to-income ratio has drifted down over the past year, with demand for new debt remaining low and many households choosing to repay their existing debt more quickly than required," the report states.

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