It used to be that you could only borrow money if you were able to prove you didn't really need it. These days it seems that anyone with a pulse that can legally sign a contract is getting "credit" thrown at them, and so more and more people are getting in debt over their heads. An article in today's Sydney Morning Herald states that over 80% of the Australians surveyed that were already in debt feared that they would be unable to make repayments over the next 12 months and would end up further in debt. This at a time when unemployment is at it's lowest level for 33 years, and when real wages have been increasing for the past decade. With many pundits expecting a couple more interest rate rises over the next year, one can only wonder what will happen when the next recession bites.
Copyright Enough Wealth 2007
1 comment:
When I was 18-20 it was almost impossible to get a credit card with a limit of more than $1000, now at 38 I've manage to accumulate 7 cards with total limits of $29500. Madness.
That said, over the next 12 months I intend to pay off 5 of those 7 cards, cancelling them as I go.
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