Australians ‘comfortable’ with debt levels

Paul Clitheroe

Most Australians claim to be able to manage debt and their credit cards wisely, according to a report by the Australian Government’s Financial Literacy Foundation.

The report, “Financial Literacy: Australians Understanding Money”, found that 79 per cent of Australians “feel comfortable” with their level of debt and their ability to manage credit cards.

However, 21 per cent will get themselves into debt by buying things they can’t afford and 17 per cent pay only the minimum amount owing on loans.

“Australians say they have high levels of ability with everyday money management issues such as dealing with credit, budgeting, saving and managing debt,” said Paul Clitheroe, Chairman of the Foundation’s Advisory Board.

“They’re less confident when it comes to more complex issues like investing and ensuring enough money for retirement, and many consider it important to learn about these.”

The report found 49 per cent recognise the importance of learning more about dealing with credit and 61 per cent recognise the importance of learning more about managing debt.

Reflecting the opinions of 7,500 Australians aged 12 to 75, it found 85 per cent of people recognise that there is no better way of saving money than paying off debt early.

A total of 76 per cent said they regularly pay the total balance owing on their credit card when it is due, although 13 per cent say they usually pay only the minimum owing.