Think your debt is under control?

While average credit card balances are falling as repayments go up, consumer advocates are criticising banks for ramping up their card marketing.

“Lenders are doing as much as they can to boost people's potential credit card debts,” says Nicole Rich from the Consumer Action Law Centre.

“As soon as we think we are getting things under control, along comes that letter, or incentive or reward points in a constant stream of marketing material to get us to increase our debt again.”

One in three Australians believe they will face serious financial difficulties and are concerned about their job security. These fears are leading to households paying down debt and boosting their savings.

Research from the Melbourne Institute indicates that improved savings rates have improved the average household financial position in the June quarter.

Source: Herald Sun