Consumer caution not easing anytime soon

by Adam Smith16 Dec 2011

Money-conscious Australians are likely to keep boosting their savings in the New Year.

A poll by Loan Market has found  consumers are determined to increase their savings in the year ahead, remaining wary of the global economy's future. The survey found 53% of respondents would prioritise savings in the New Year.

Consumer wariness and debt deleveraging looks unlikely to abate in 2012. With a high proportion looking to save more, 22% also stated they would endeavour to pay off their credit card.

There's some good news for mortgage brokers, though. Twenty-three per cent of respondents said they would refinance their mortgage in the year ahead.

Loan Market COO Dean Rushton said the consumer caution which largely defined 2011 looks set to continue in 2012, with consumers remaining uncertain about the situation in Europe.

"Despite interest rates being reduced in November and December, consumers are uncertain about the direction of the economy with events in Europe. Other recent Loan Market surveys have shown that the issues occurring overseas are top of mind for Australian consumers when considering their financial position. That situation is not likely to change even though Australia looks well prepared to weather the impact of the European crisis on the world economy," Rushton said.

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