Are you burdened with the financial strain of a mortgage or endless credit card debt?
If you answered yes to either of the above, you are not alone. In fact, you are among thousands of other Australians struggling with debt; collectively, you share the title of global leaders in personal debt.
Recent statistics from the Reserve Bank of Australia show that Australians have overtaken US citizens and now have the greatest amount of debt in the world.
Generally speaking, mortgages, personal loans and credit cards are the biggest culprits for creating debt, totalling over $1 trillion AUD.
The probable causes of Australian debt include:
- Legislation designed to help Australians purchase their first home
- Long-term low interest rates
- Steadily rising costs of living, particularly the costs of food and rent. This rising cost has not been proportional to income earnings.
- As the financial outlook for Australia improves, consumers are more willing to borrow money due to increased confidence in the economy.
However, it is important to know the difference between good and bad debt.
Good debt is debt that has been created to shape your future in a productive way, for example, a low-interest rate investment to purchase property. Bad debt is when you are living beyond your means and purchasing things you do not need or cannot comfortably afford.
It is crucial to keep spending and personal debt under control. If you are struggling with what feels like insurmountable debt, it is recommended that you speak to a professional today. Debt Free Australia (DFA) has helped thousands of Australians get back on their feet through formal and informal debt solutions. Our insolvency experts are licensed and experienced to help pave the way for debtors to realise a brighter financial future.
Call us now for a free initial consultation on our confidential hotline at 1800 676 598.