Borrowers unfazed by debt
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.
To continue reading the rest of this article, please log in.
Create free account to get unlimited news articles and more!
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.
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.”
