Binge borrowing necessitates debt diet: Opportune
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Tim Neary
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12/01/2010 12:00:00 AM
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Now that the Christmas spending season is behind us Australian consumers may find themselves living beyond their means and will need to go on a debt diet, cautioned Opportune Home Loans CEO and founder Paul Ryan.
And serving to endorse this warning, figures released by the RBA show mortgage, credit card and personal loan debts now stand at a whopping $1.2 trillion - up 71% from just five years ago.
These levels place borrowers under extreme pressure to further rate rises, said Ryan.
"Recent surveys show that over 70% of people don't even know what their rate is," he said.
Ryan added that at current interest rate levels borrowers should not be paying more than 6.30% on their home loans as there were "plenty of lenders out there doing it cheaper."
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