It is becoming alarmingly apparent that more and more Australians nationwide are falling into the household debt. With ever-increasing interest rates, mortgage repayments are becoming unmanageable and daily living costs are soaring.
Managing Director of the Australian Lending Centre, Chris Riotto, asserts, “We are receiving an influx of customers who just can’t afford to sustain their increasing mortgage repayments and keep up with household costs.Although these people initially had sufficient incomes to meet their repayments, because inflation is now increasing to an unmanageable point, they are now finding it virtually impossible to stretch their incomes enough to make ends meet.”
Australian Debt is on the Increase
Based on the Supreme Court’s recent repossession figures, an average of 10,000 Australians are losing their homes every year. Riotto concedes that while debt is becoming inevitable for so many Australians today, it isn’t solely due to falling behind in mortgage repayments.
The rising cost of living in Australia is becoming increasingly on par with some of the world’s biggest cities, as the upsurge in the price of day to day household expenses continues to intensify. Grocery costs are up by 40 per cent from those recorded in 2005, while escalating petrol prices show no signs of slowing down. And there’s little reprieve for those unable to afford a mortgage also, as experts predict a continuation of steep hikes in rent prices.
With basic living costs mounting to record proportions, it is of little surprise that the rate of debt is proliferating in society. Consumers are using short term remedies, such as taking out extra credit cards to help them manage expenses, pushing the national credit card debt to a gargantuan $42 million in December last year. While this is doing little to ease the problem, it is becoming a familiar band-aid solution to a crippling crisis.
The average Australian struggling under increased living costs, housing payments and overwhelming credit card bills, has no option but to seek other monetary reserves to meet their debts. As the Australian Lending Centre recently discovered, ‘85% of our customers surveyed said they had unsecured debts ranging between $6,500 and $80,000’, which only serves to emphasise the increasingly common spiral into debt.
Are these patterns of Australian households falling into debt inevitable?
The refinancing solution is becoming a popular phenomenon, giving Australian households a beacon of hope, despite their financial woes, as they struggle to stay afloat during these trying circumstances.
Many Australians are looking for refinancing options to alleviate their increasingly dire mortgage debts. If you too are struggling to make ends meet with increased mortgage repayments, look no further than ALC for a solution.