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The Australian psyche has undergone a fundamental shift in recent years, ING DIRECT’s chief executive Vaughn Richtor has claimed.
Speaking at a media briefing in Sydney yesterday, Mr Richtor said Australians were increasingly looking to deleverage rather than take on more debt.
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“Despite the fact that interest rates are coming down, people are deleveraging more and more,” he said.
“This is further evidenced by the fact that 43 per cent of mortgage holders are now ahead on their repayments.”
According to ING DIRECT’s latest Financial Wellbeing Index, 39 per cent of households in New South Wales and the ACT are ahead on their mortgage repayments, while 45 per cent of Queensland households were ahead.
In Victoria, 42 per cent were ahead on their mortgage, while 46 per cent and 51 per cent of South and Western Australians respectively were paying their mortgage down ahead of time.
But while households are clearly prioritising debt, many are struggling with the higher cost of living, with 83 per cent of respondents indicating that everyday costs have risen by approximately $43 per week.
Nine out of ten blame the burden on utility bills, while 77 per cent blamed groceries and 74 per cent blamed fuel.
