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Forum » Why can’t Australian’s manage their money? Personal debt up past their eyeballs
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Thread: Why can’t Australian’s manage their money? Personal debt up past their eyeballs

post 1665445473 08-02-2022, 07:02 PM
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Why can’t Australian’s manage their money? Personal debt up past their eyeballs

Australian’s have the most personal debt in the world. Why can’t they manage their money?
https://www.finder.com.au/australias...t-in-the-world

In fact, the ratio of household spend to income has more than doubled between 1995 and 2015, going from 104% to 212%, according to the OECD Data released in 2015. This means if the average person earns $80,000 net, they are spending $169,600 per year.
post 1665445683 08-02-2022, 07:06 PM
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Canadians too
post 1665445823 08-02-2022, 07:09 PM
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  1. AlexxVann
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What is Australia’s personal debt?
As of 2016, Australia’s total personal debt is around $2 trillion and the average Australian household owes $250,000. This debt can be broken down into the following categories.

Mortgages. Australian Bureau of Statistics (ABS) data analysed in the AMP.NATSEM report showed that mortgages for owner-occupier housing makes up 56.3% of all personal debt in Australia.
Investor debt. Debt associated with investments such as rental properties or shares makes up 36.5% of our household debt.
Personal debt. Personal loans make up 3.1% of Australian household debt and are commonly used to buy cars, other consumer items or to pay for holidays.
Student debt. Debt from student loans, particularly Higher Education Loan Program (HELP) loans (formerly known as HECS), makes up 2.1% of Australian household debt. The AMP.NATSEM report says this figure reflects the time it takes to pay off these loans, with repayments typically deducted from your salary when you reach the threshold ($54,869 for the 2016-17 tax year).
Credit card debt. While there are often reports on the sheer volume of credit card debt in Australia, it only makes up 1.9% of all household debt
Most of the personal debt will generate wealth.

I doubt they're incorporating ROIs in their personal debt figures.

My income from job is around the $150,000/year mark, but with my investment properties I'd be spending 2-3 times that on mortgages. Most of which is covered by rent. So my personal debt to income ratio would be very high. But really I'm not struggling financially in the slightest.
post 1665446963 08-02-2022, 07:31 PM
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  1. davik
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if you read the article, it says most comes from real estate debt. very little of that comes from petty debts
post 1665447463 08-02-2022, 07:41 PM
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Thanks to success governments importing millions of immigrants

House prices have 10x-15x since the year 2000
While wages have 2x-3x at most

Gee I wonder why everyone is broke

Worked out great for the boomers who owned realestate in the 90s or before
Screwed everyone post 2010

Things are so expensive in australia now the government can’t get even Indians, Chinese or Phillipinoes to come here anymore
All we can get is Africans who just create social problems and crime
Plant the trees in whose shade your grandchildren will play
post 1665454883 08-02-2022, 10:28 PM
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Only debt I have is my mortgage. And with property prices soaring it's increased in value by 300k in 4 years.
post 1665457663 08-02-2022, 11:44 PM
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It’s mostly housing debt and we have one of, if not the, most expensive housing markets in the world

A normal house in greater Sydney is now $1.3 million Australian rupees

Justified though because everyone wants to live in the greatest country in the world
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