Australians Spend more than we earn

‘AUSTRALIANS are spending more than they earn and continuing to record high levels of debt, a report has shown.

But households should be able to cope with their rising debt levels as long as illness or unemployment does not strike and interest rates do not rise, the latest AMP.NATSEM Income and Wealth Report has found.

The research, released today, shows the average Australian household spends 2.3 per cent more than it earns each week.

The report finds the home mortgage continued to be the key source of debt for Australian households, amounting to about 60 to 70 per cent of debt right across the income spectrum.

It shows the average home mortgage for owner-occupation taken out in August 2004 was $205,600, more than double the average mortgage a decade before of $91,200.’

Read more at The Australian: Spend more than we earn

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