australian's live on debt

clipped from www.choice.com.au It’s looking gloomy out there, with unemployment rates increasing and many Australians facing redundancy this year. At the same time, household debts are higher than ever: we now owe close to $160 for every $100 of after-tax income – double what we owed 10 years ago (see graph, below) Debt relief companies are reporting extreme cases of consumers carrying up to $400,000 in credit card debt on 50 separate credit cards. Overall, about 75% of cards are not fully paid off each month and are accruing interest, many at a rate between 18% and 19%, with an average unpaid balance of $2300. The good news, however, is that Australians are reducing their reliance on debt in preparation for the tough times ahead, with a clear trend towards saving instead of spending. Several options are available to help you get your debt back under control.