New data has found that Australians are worried about their finances, despite the fact they are saving more money and paying off debts faster.
According to Mortgage Choice’s 2015 Money Survey, 53.6% of Australians indicated that they were either “very worried” or “concerned” about their finances – slightly up on this time last year.
But while the vast majority of respondents are concerned by their financial situation, Mortgage Choice spokesperson Jessica Darnbrough says the survey shows most Australians are actually saving more money and paying off debt faster than ever before.
“When asked how much debt (excluding a mortgage) they had, 56.0% of Australians said they had less than $10,000 in debt, with 43.2% of those saying their debt was actually less than $5,000,” she said.
“Furthermore, one in every three Australians indicated that they had more than $20,000 in savings – up from the previous year.
“All of this data would suggest Australians are becoming increasingly savvy when it comes to managing their finances and controlling their spending.”
However, while the survey results suggest that Australians are continuing to improve their money management skills, Darnbrough said the fact that so many Australians are worried about their financial situation cannot be underestimated – and this is where a broker can help out.
For clients who have a bit of credit card debt or a few personal loans with high interest rates, Darnbrough says brokers could help by consolidating these debts into their client’s home loan.
Consolidating existing debt into a home loan can help reduce the interest paid, as the interest rate on a home loan is generally a lot lower than the interest charged on credit cards.