Debt is good for you but…
The median household in Australia has debts that amount to just 8 per cent of total household assets.
Claims of a debt crisis in Australia are unfounded says academic economist Mark Wooden but young people lured into debt by first home owners grants could get themselves into trouble. Unless there is a big rise in unemployment says Wooden, there will be no widespread debt problems in Australia.
The bulk of household debt in Australia is held by wealthier families with a good capacity to repay. Less than 10 per cent of households had excessive debt in 2006, before the onset of the global economic crisis says Wooden.
Debt has served Australian families and the economy well since the 1960's says Wooden.
Source: The Australian