Powered by MOMENTUM MEDIA
SUBSCRIBE TO OUR NEWSLETTER SIGN UP
Powered by MOMENTUM MEDIA

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.

Borrowers unfazed by debt

Staff Reporter 4 minute read

By: Staff Reporter

Rising interest rates do not seem to be having a negative impact on borrowers, according to a recent survey.

Club Financial Services’ latest consumer survey found that the global financial crisis has not changed Australian consumers’ attitude to debt.

According to the survey, more than 78 per cent of respondents feel the same way about their finances as they did before the financial markets collapsed.

Advertisement
Advertisement

Around 82 per cent had home loans, and almost half of the individuals surveyed owe between $100,000 and $300,000, while 19 per cent had borrowings in excess of $700,000.

“Usually when there is a change in the economic climate borrowers tend to look for ways to ease their cash flow by refinancing their loans, but these results show that average Australians are coping reasonably well," Club director Simon Norris said.

"When asked how they felt about their level of debt, 70 per cent believed it was manageable and that repayments could be comfortably factored into their household budget.

“Perhaps attitudes to debt are being cushioned by strong gains in property values, since in the 12 months to March this year, house values rose 27 per cent in Sydney, 21 per cent in Melbourne and almost 11 per cent in Adelaide.”

Borrowers unfazed by debt
default
TheAdviser logo

The not-to-be-missed Accountants Daily Strategy Day will travel through Melbourne and Sydney in August to equip accounting professionals with the latest industry updates and tips for modern practice management as well as the latest cutting-edge technology, processes, strategies and trends shaping the future of accounting. Visit the website for more information: www.accountantsdaily.com.au/strategy-day

PROMOTED CONTENT


default

 

more from the adviser
Greater Bank Newcastle Perm merger

Breaking News

Two banks announce intention to merge

Two large customer-owned banks have announced that they are inten...

Paul Herbert AMP Newsroom

Breaking News

AMP hires intermediary head

AMP Bank has recruited from MyState for its new head of intermedi...

Theo and Alex Shore Financial

Breaking News

Brokerage officially launches white-label loan

North Sydney-based brokerage Shore Financial has officially launc...