It seems many Australians are attempting to restore their financial health in the current climate, by saving money and paying down debt.
Veda Advantage’s latest Australian Debt Report reveals almost half of the Australians with debt surveyed owed less than they did 12 months ago, while only 13 percent of Australians with debt now owe more money than they did 12 months ago. The report also revealed that many are trying to save money in the current financial climate, with 64 percent keeping their finances to within a specified budget.
Chris Gration, Veda Advantage’s head of external relations, said that overall, the report shows encouraging signs that Australian families are responding well to tough economic times.
“The report has found Australians are paying down their debt, and most are currently living within their budget restraints. They may be taking advantage of lower interest rates and are watching what they spend their money on in the current economic downturn.”
However, one in ten Australians are also looking towards borrowing more credit in the next six months.
Gration has warned there are still families struggling with debt, and the Government must do more to help them.
“The Government should be mindful of those families that are potentially caught in a debt spiral.”
He believes the Government needs to fast track changes to Australia’s credit-reporting laws to protect Australian families.
The Federal Government’s credit reporting and responsible lending reforms will ensure only those Australians who have the ability to repay loans have access to new credit, and that those Australians who pay their bills on time may be rewarded for doing so.
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