The majority of Australians have taken advantage of the recent pause in interest rate rises to get on top of debt commitments, a national survey has found.
According to Loan Market, almost 60 per cent of Australians have used the interest rate reprieve to pay off credit cards or make extra repayments on their mortgage.
The Reserve Bank has left the official cash rate on hold since November of last year.
According to Loan Market chief Dean Rushton, 28 per cent of respondents to the survey had used the six month rate reprieve to get ahead on their home loan while 29 per cent had turned their efforts towards credit card debt.
“With home owners paying off some of their debts, they are going to be more comfortable in their mortgage and ultimately in a better financial position – all thanks to the RBA keeping interest rates on hold,” he said.
Mr Rushton said that considering how strong both wages and the job market are at the moment it was encouraging to see people use the opportunity to pay off short term credit in particular.