Reserve Bank Issued Personal Debt Warning

debt consolidation

It is an obvious statement that all is not as well as it could be at the moment for many economies around the globe. This week has seen shock waves in the US market with the collapse of financial powerhouse, Leyman Brothers.

In a speech to business leaders in Sydney this week, Glenn Stevens, Governor of the Reserve Bank, said Australia has been affected by the global credit crunch, but much less than other countries.

Mr Stevens said the massive rise in household debt over the past 15 years may be coming to an end and could be replaced by a rise in government borrowing to fund infrastructure projects.

“There is also a chance, it seems to me, that households might seek to contain and consolidate debt for some time,” he said.

Mr Stevens says the fundamentals of the Australian economy are strong however there is concern that they high level of personal debt will result in a slowing of the economy and increased cost of living.

Many Australians have taken advantage of “interest free offers”, easy access to personal loans and increased limits on credit cards over the past few months and are now struggling to meet monthly repayments.

It doesn’t take much, just a few months of work or an unexpected personal expense to throw out the family budget. Before you know it the creditors are chasing you and the bills are mounting up.

If you are struggling meeting your repayments each month, ALC may be able to help. Australian Lending Centre offers a comprehensive range of services which cater from Debt Consolidation and Debt Solutions. Don’t hesitate; call us now on 1300 138 188.

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