Barclays’ chief economist and former treasury economist Kieran Davies has announced that Australian ratio of household debt has hit a record 177 per cent of annual disposable income, while housing valuations are on the rise.
House prices now equate to 4.3 times annual income and 28 times annual rent, both in close proximity to their all time highs.
Australian house prices leapt almost 11 per cent in 12 months (to 31 March 2014) to record levels in absolute terms, with capital gains of 15 per cent experienced in the nation’s largest city, Sydney.
While this is great news for homeowners that have paid off their mortgage, many Australian’s feel that they are neck deep in financial trouble in paying off their dream home. Managing debt and household income is a fine balance, with some finding it hard to keep debt in the all-clear zone.
However, you do not need to worry that you are at the end of your rope yet,  – fine-tuning and amending your Debt Agreement  is always a possibility, as are a range of other options recommended by your Debt Agreement Administrator. Affordable living could be on the horizon for you.
For information on a range of solutions to help you get debt free, call us today on 1800 462 767.
We operate a 24 hour / 7 days a week advice line and calls to our hotline are confidential and if required, anonymous.