Interest payments breach record levels

Mortgages and credit cards are ensuring that households are spending record amounts of income on interest payments. Interest payments now account for 11.9 per cent of total disposable family income, the highest level in 30 years. Outstanding credit card debt has climbed 8.5 per cent in the past year. Economists believe the debt figures demonstrate household confidence in taking on more debt to fund investments and purchases, with Margin Lending now breaching $30 billion in March fuelled by the booming share market.