Aussie households weathering financial storm

The situation for many Australian households is improving, it has been reported.

People are increasingly managing to pay off their credit card debt and home loans and are looking into more savings accounts and investment options.

This is according to the Reserve Bank of Australia’s (RBA) Financial Stability Review, which revealed that people are in a better position now than they have been since their net worth crashed in 2007.

Among the factors credited for the boost in household finances were interest rate cuts, tax reductions and fiscal stimulus.

"While households still nominate deposits and debt repayment as the wisest options for savings, more recently interest in equities and property has picked up somewhat," it said.

Furthermore, it indicated that only one per cent of homes with owner-occupied mortgages – potentially including low interest home loans – had negative equity.

This follows the RBA’s announcement that the country’s economy had a "clean bill of health" this week. It also said Australia was in a better position than most of its global counterparts.

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