More Australians embrace low rate debt
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If interest rates fall to zero, Australians will be more willing to take on debt than their overseas counterparts, according to new research by Aviva.
The survey found 29 per cent of Australians would take on new debt in a zero interest rate climate compared to an average 16 per cent for the rest of the world.
The next country with the highest propensity to debt was the US with only 15 per cent looking to increase their debt levels.
The survey, conducted by 0% World research, spoke to more than 3,000 people in Australia, US, UK, Spain, Poland and Singapore.
However, most Australians are not worried about their current financial situation, the survey found.
Only 23 per cent of Australians were 'very worried' about their finances, while 55 per cent were 'slightly worried'.
Of the rest of the world, 28 per cent were 'very worried' and 57 per cent 'slightly worried'.
Aviva's general manager, marketing, Tim Cobb said the research showed Australians were staying positive about the current financial situation.
"Our research has shown Australians are staying positive and are focused on the long-term outlook," he said.
"Despite plenty of talk about Australia falling into recession, many Australians are still willing to take on new debt and invest."
Australians' positive outlook was also reflected in how they saw their personal financial situation in 12 months' time.
The survey revealed 32 per cent of Australians thought the financial situation would be better if interest rates fell to zero in the next 12 months.
This compares glob ally to a world average of 21 per cent of those surveyed who thought life would return to a pre-crisis position.
"Australians understand that markets have their ups and downs, with many agreeing that it will all return to normal," Cobb said.
However, while Australians are positive in their outlook, if they were offered investment products with a guaranteed rate of return, 46 per cent said they would use them, compared to 48 per cent of Americans and 54 per cent of Singaporeans.
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