By: Staff Reporter
Despite a recent dip in home loan borrowing and retail spending, Australian households are in higher debt levels than 12 months ago.
According to RateCity’s latest research, Australian households are $86.3 billion more in debt than one year ago.
In an analysis of data from the Australian Prudential Regulatory Authority (APRA), RateCity found that households borrowed $771.3 billion in June - 12.6 per cent more than in the previous year $685 billion.
The figure includes owner-occupied mortgages, credit cards and other personal loans.
RateCity chief executive officer Damian Smith said there was a need for borrowers to take caution about these rising debt levels.
“Clearly Australian households are more comfortable with borrowing money now than they were last year, but there are risks of over-borrowing and paying more interest than needed,” Mr Smith said.