Household Debt Still Higher

In the latest edition of the RBA’s Chart Pack, we get an update of household finances to end October 2016. The debt to income ratio rose again, from 186 in June 2016, reinforcing the piles of debt household have. A record. How will this all get repaid given the current low levels of income growth?  Whilst low interest rates mean repayments are manageable at the moment, this will change if rates rise.

household-finances-nov-2016

Author: Martin North

Martin North is the Principal of Digital Finance Analytics

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