 Wiping out debt
Australians seem to be moving towards owning less debt, as fear of unemployment and economic downturns take their toll.
First-home buyers are playing it safe with their average mortgage falling by almost 1 per cent in April, and property investors, too, are being cautious with a fall in the number of investment loans down 7.5 per cent during the year.
According to official statistics, credit card balances have fallen for the first time in more than 14 years, as households cut spending and finally start to repay their outstanding balances. "It's good that credit card balances are going backwards but what is really striking is that credit card limits being offered to people are still going up," Rich, who is director of the Consumer Action Law Centre, says.
One in three Australians think they will suffer serious financial problems, according to the latest Newspoll survey and just over one in three were worried about job security.
Their concern appears to be paying off. The Reserve Bank of Australia data revealed last week we are officially tightening our belts.
The average outstanding credit card balance shrank by 1 per cent during the past month to $3080 in April.
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