According to a recent survey conducted by Club Financial Services, interest rates do not seem to be having a negative impact on borrowers.
It seems that the global financial crisis has not changed Australian consumers’ attitude to debt.
According to the survey, more than 78 per cent of respondents feel the same way about their finances as they did before the financial markets collapsed.
Around 82 per cent had home loans, and almost half of the individuals surveyed owe between $100,000 and $300,000, while 19 per cent had borrowings in excess of $700,000.
“Usually when there is a change in the economic climate borrowers tend to look for ways to ease their cash flow by refinancing their loans, but these results show that average Australians are coping reasonably well,” Club director Simon Norris said.
Seventy % of people interviewed felt that they could comfortably manage the level of debt that they were holding.
It is possible that the strong gains experienced by home owners in the property market as providing a level of protection to the debt people have.
In the 12 months to March this year, house values rose 27 per cent in Sydney, 21 per cent in Melbourne and almost 11 per cent in Adelaide.