From SMH: Australian household debt has reached a record high level as low wage growth fails to keep up with a resurgent property market amid signs the Reserve Bank will start next year with another interest rate cut to boost the economy. As a weekly measure of consumer confidence dipped to a two-and-a-half year low on concerns about the economy, research by the NAB reveals household debt is now more than double annual income for the first time. Household debt was 120 per cent of income at the turn of the century and reached 178 per cent in the wake of the global financial crisis when it stabilised as Australians sought to manage their finances. But since then it has started growing. It has now reached 202 per cent with the most indebted households in Victoria, where the debt-to-income ratio has reached 212 per cent. It is followed by NSW households at 191 per cent while Queensland households are at 183 per cent. NAB senior economist Kieran Davies said while total debt had only grown "modestly" to $2.5 trillion, wages were simply not keeping up with the extra imposts being carried by most households. He said even though interest rates were at a record low, the debt servicing ratio of households was just short of the peak reached in 2008 when the official cash rate was 7.25 per cent. It is currently just 0.75 per cent. The high debt left the country's households, particularly those in Victoria and NSW, at an increased risk in any downturn.
They did away with salvery when they determined you had to feed them,house them,provide medical care and supervise them,and keep their children and also them in old age. So now they just give them just enough to survive,and they have to pay for everything else;or watch their children starve.
A bit of BS as Australians have the highest net wealth of all countries. Most of the debt is mortgages which in most cases are less than the value of the property.
Something doesn't add up. The average Australian mortgage is $384,700. And the Australian median gross household income was $84,032 in 2016. $384,700 / $84,032 = 4.57 (times income, not double) This (4.57) doesn't include credit card and other personal debt. https://www.echoice.com.au/guides/whats-the-average-australian-home-loan-size/ https://www.smh.com.au/money/planni...d-with-other-australians-20180410-p4z8s4.html
I'm assuming that the average mortgage, only includes households that have mortgages? Whereas the average debt would include all households.
Approx 30% of Australians own their house outright. https://www.aihw.gov.au/reports/old...agement/employment-and-economic-participation The older generation (i.e. OK Boomers) are the ones who don't have mortgages or a lot of debt. The original article doesn't address this in their figures. The majority of people do have mortgages, and much higher debt than the article states.
Yet many Australian families can only afford to eat baked beans and 2min noodles and can't afford proper health care, not to mention the high level of depression from young to old. I think we need to have a better understand of the word "wealth". Hint... it's not bricks and plasterboard.
2 mins noodle is very bad for health, we haven’t got it that stage in Singapore yet because of imported labour with no minimum wage so take aways are cheap. I’ve seen in Japan, the lower income is able to survive on cheap but healthy sushi and bento. The cost of take away food in HK is about 50% higher than Singapore, but still cheap in terms of Australian standards.
the portions are different take fish + chips in oz, its a big piece of fish, and chips almost half a bag in sg, small fillet and a bunch of fries its almost 3:1 in size for similar price items