Aussie families "consolidating their debt"

Thursday 24 March 2011

Article by Mozo

Aussie households are consolidating debt and saving at a much better rate than in previous years, new research has revealed, as well as displaying a more careful approach to borrowing than was seen before the recession.

Aussies 'are starting to reduce their debts'

According to the Reserve Bank of Australia's Financial Stability Review, ten per cent of net disposable income was saved in 2010, compared with levels of under four per cent recorded early on in the decade, the AAP reports.

However, the financial institution noted that "household indebtedness remains historically high and recent increases in interest rates have lifted the aggregate debt servicing requirement".

It went on to note that some caution should be taken regarding the effects of higher loan and mortgage repayments, even if rate increases have not had much of an impact on the paying down of debt.

These results come after Ross Gittins, correspondent with the Age, observed that some Australians are now less willing to rack up substantial credit card debt and that people appear to be demonstrating a bit more self-control.

Get more information on the latest Reserve Bank interest rates with MozoADNFCR-1761-ID-800475224-ADNFCR

Back to top