Household debt soars
Australia’s total household debt rose by more than 10 per cent in the year to last October, according to Australia’s credit unions.
A credit union study by McGregor Marketing shows one in five people have no household budget strategy and almost one in ten would be forced into payment plans if several bills unexpectedly fell due.
The results of the study have sparked the Credit Union Services Corporation (CUSCAL) to launch a campaign aimed at helping individuals avoid a financial crisis. CUSCAL is currently working with the Federal Government and the Insolvency Trustee Service Australia (ITSA) on reforming bankruptcy legislation to make it easier to resolve personal financial crises.
The study showed Australian household debt rose 10 per cent to $270 billion in the year to October 1998. Total average debt per household has risen 78 per cent since 1991 to the current $38,000. It also showed that 20 per cent had no household budget strategy and 10 per cent did not put money aside for unexpected expenses.
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