Feeling poor: Mortgages looking too rich

by Mackenzie McCarty20 Jun 2012

National household savings might be at a 20-year high, but Australians still feel financially ill-equipped in their current situation.

A lack of personal savings has six in ten Australians concerned about their current financial situation, according to Dun & Bradstreet's latest Consumer Credit Expectations Survey.

In fact, one in three respondents to its survey say they would be unable to cover basic expenses for longer than a few weeks if they were faced with a sudden job loss.

Low income earners and older Australians are particularly grim, with 69% of those earning less than $50,000 annually and 62% of consumers aged 50-54 worried about their personal financial health.

In bad news for credit providers, 36% of consumers say they are less likely to apply for a mortgage than 12 months ago, with only 5% more likely to approach a broker or bank for a mortgage loan.

“Ten to 15 years ago consumers were more comfortable living with a lower savings to debt ratio," said Dun & Bradstreet director Adam Siddique.

"However, continued global economic uncertainty is weighing on Australian households and dissuading discretionary spending, credit usage and significant investments such as buying a property.”

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