Recent reports show that Australian households are now collectively in $1,600 billion worth of debt. Household debt is growing at a rate more than twice as fast as the growth rate for wages.
While other countries have been reducing their levels of debt since 2011, Australian household debt has continued to rise and is presently the highest in the world. Household debt is equivalent to 130 per cent of national income.
The nation’s business and private sector debt has also increased to a national high of 206 per cent of national income.
This substantial amount of debt is putting Australians’ financial future at risk. Those with high amounts of debts will be unprepared for interest rate increases or unexpected financial problems that may arise.
CRS Insolvency Services has compiled a list of ways to manage your personal and household debt:
- Try to pay back debts now while interest rates are still low
- Identify actual purchasing needs and limit your consumption
- Do not over-borrow
- Be aware of what is happening in the economy and how it may affect you
If you are in serious and overwhelming debt, you should seek advice from a trusted insolvency expert. CRS Insolvency Services is a team of highly experienced debt specialists who specialise in both personal and corporate insolvency cases.
CRS provides impartial, expert advice on how one can manage their debt and deal with insolvency. We have helped thousands of Australians with our free and confidential advice. Call our hotline today on1800 210 073.