Australian household debt is the highest in the world and it is only getting worse. Tied with Denmark, Australia’s household debt is 130 per cent of GDP and that is far above the advanced world’s average of 78 per cent of GDP. That is mostly due to Australia’s obsession with buying real estate but is also caused by high credit card debt and personal loans. All of these forms of debt combined have brought Australian households to the brink of disaster if another global financial crisis happens.
There was a small windfall in Australia’s favor in 2014 when average incomes grew faster than average cost but the budget relief was mostly felt by the wealthier minority rather than the poorest. Some Australian states benefited more than others as well. The Northern Territory received the biggest boost while ACT actually fell behind, losing $2,517 on average per household. This makes it even more difficult for families in the ACT to just budget their incomes and costs of living.
The richest fifth of Australians had the biggest pay off and the poorest fifth, those who need the help the most, received nearly nothing. Just as household debt is at its worst and Australian homes need to get budget relief, now is when just budgeting is the most important thing a family can do to secure its family’s financial future. Setting a household budget and getting payments under control will be the number one help in the long run to get household debt under control and get the household debt to GDP ratio down.
Australians do have high household debt but it is not out of control yet. Each individual family has the opportunity to get their budget in order and use the average rising wealth to their advantage. Paying off mortgages, getting credit card debt paid off and using personal loans in the right way can help Australians get their debt down closer to the advanced world’s average.
Contacting a professional and getting debt down to a manageable payment with low interest rates can help those who need help the most. Getting budget relief is what Australian homes need and they need it now while the economy is doing its best to help them in the right direction. So contact Just Budget for fast and easy budget relief and debt relief.