An increasing number of Australians are now finding themselves debt free. According to the St. George-Melbourne Institute Household Financial Conditions report, Australians are continuing to cut back on their debt and now 42% of Aussies are completely debt free. This is up by 2% from the previous quarter.
However, the number of people with credit card debt rose by 5.8% over the past year.
Holidays abroad also remained the main priority for saving for Australians, with a rainy day fund being a close second. In fourth, after retirement, was the repayment of debts and bills.
The number of Australians using car finance also rose dramatically in the quarter, jumping from 2.7% to 16.2%.
St. George Bank’s chief economist Hans Kunnen said that while these figures show growth, people are remaining cautious with their money in the wake of the global financial crash.
Source: http://www.dailytelegraph.com.au/money/banking/more-australians-debtfree-saving-for-overseas-holidays/story-fni0cnri-1226679271111
