Four out of five Australians are worried about their ability to meet future debt repayments, a survey shows.

The biannual survey by data intelligence company Veda, found 82 per cent were worried about their ability to meet debt repayments in the future, up from 75 per cent a year ago.

The results come as fears grow of a global economic downturn on the back of Europe's sovereign debt crisis.


The survey also found that one in five Australians was struggling to repay their current credit commitments.

However, about 29 per cent of this sub group were considering applying for more credit in the next six months, the survey found.

"It is concerning that there are people struggling with their current debt levels but are turning to more credit as the answer, potentially edging closer to a debt spiral," Veda senior adviser Matthew Strassbourg said in a statement.

The survey found people aged 25-34 were the most worried about their ability to repay debt and the most likely to borrow more in the next six months.

About 70 per cent of this age group had received help from a family member to repay debts compared to about 35 per cent for the rest of the population.

comments


        Chop up the credit card. I don't understand why people are conned into thinking they can continue to spend, spend like there's no tomorrow. Come February business will be at a standstill from users overspending now. Not to mention the stress these idiots will be enduring.   

    Commenter
        emma peel
    Location
    Date and time
        December 19, 2011, 3:25PM

        The best thing about a hangover is it reminds us not to drink so much. This debt stress will hurt but at least we might learn a valuable lesson.   

    Commenter
        Rob
    Location
    Date and time
        December 19, 2011, 3:32PM

        A few days ago a TV station was reporting the sad news that some families are devastated because the $2000 YES TWO THOUSAND DOLLARS cubby house ordered for their children would not arrived for Christmas. Yet this article highlights 4 out of 5 are worried about their ability to meet future debt repayments. Sometimes I wonder where our priority lies. My sympathies are with families doing it tough and have to juggle their budget then those families whose children are missing out on their cubbies.   

    Commenter
        Confused
    Location
    Date and time
        December 19, 2011, 3:57PM

        I reckon their survey is poorly designed and they have made the wrong conclusion. People are worried about future debt because they are about to take on a big debt which is the only way most people will own a house. Maybe not worry but everyone that has a debt has to acknowledge that if they lose their job, and can't get something else they will have problems.   

    Commenter
        malma
    Location
    Date and time
        December 19, 2011, 4:03PM


        Another survey that confirms one thing: Too many binge consumers out there. What the survey doesn't point out is a) that most are incapable of stopping their obsession and b) the banks are fuelling the binge by offering irresponsible credit limits. And that is why 29% then consider getting into more debt to fix their problem - Very smart thinking. Follow emma peel's advice: Chop up the credit card. That's when you start regaining control and only this way, you can; very slowly, due to punishing interest rates, get the upper hand again.   

    Commenter
        slow_food
    Location
        Perth
    Date and time
        December 19, 2011, 4:13PM


Read more: http://www.theage.com.au/money/borrowing/most-australians-worried-about-debt-20111219-1p1v4.html#ixzz1hIRWCP9g

One comment said:

"Chop up the credit card. That's when you start regaining control and only this way, you can; very slowly, due to punishing interest rates, get the upper hand again. "

Good advice. Buy only what you have the cash to afford.

Those people that are worrying about the cubby house this year might be worrying about losing the big house in a year or two.

It's coming!!!!

and the best treasurer in the world won't stop it.

Personal debt has been the underlying issue to stop confidence. Howards irresponsible ' We never had it so good' whilst ignoring our personal debt levels is coming back to bite. And the warnings were there. Even Howard was warned- yet it is better economics  to ignore, isnt it?

Quote:


Except the Gillard Minority Govt which is stacking it up.