Australians embracing debt
Despite higher interest rates and evidence of more subdued retail spending, Australian households are borrowing substantially more than they did 12 months ago, according to new analysis released by financial comparison website, RateCity.
The analysis has claimed that Australian households are carrying $86.3 billion more in debt than they were 12 months ago, and cites data from the Australian Prudential Regulation Authority showing Australians have borrowed 12.6 per cent more in June ($771.3 billion) than in the previous year ($685 billion).
It noted that household deposits had seen a slower incline of 8 per cent in June compared to the same month last year with households holding $34.5 billion more in the bank.
Commenting on the analysis, RateCity chief executive Damian Smith said households needed to be cautious about their debt levels.
“Clearly Australian households are more comfortable with borrowing money now than they were last year, but there are risks of over-borrowing and paying more interest than needed,” he said.
AUTHOR
Mike Taylor
Recommended for you
The FAAA has secured CSLR-related documents under the FOI process, after an extended four-month wait, which show little analysis was done on how the scheme’s cost would affect financial advisers.
Nearly seven in 10 HNW-focused advisers view alternatives as the asset class that will be fundamental to meeting client demands in the future, according to Praemium.
The Perth-based advice practice has welcomed a private wealth adviser and senior paraplanner to its ranks amid its strategic shift towards wealth transfer strategies.
The number of members expelled from the Australian Financial Complaints Authority almost doubled between 2023 and 2024, according to internal data.
