RBA concerned by rising household debt

AAP and Dow Jones Newswires 12 Aug

A senior Reserve Bank official has highlighted concerns about rising household debt in an indication interest rates may not be cut from current record lows.

RBA deputy governor Philip Lowe said borrowing has increased as house and land prices are driven higher by a rapidly growing population and limited housing supply.

I'm not ready to be wealthy...

What is the defining factor, the catalyst, that causes someone to take stock?

When is the right time, why are people happy to be stuck in a rut.

People's financial lives, like businesses tend to go through economic cycles: growth, plateau, decline, nadir. But unlike businesses the approach tends to be far more laissez faire.

Pay off your mortgage in your sleep - #1

Getting rid of your mortgage is a function of four things:

  • Income
  • Cashflow
  • Structure, and
  • Focus

The same is true for any debt. Seems obvious but if you don't or can't get in front of it, then you have a challenge. And for many people that first step seems insurmountable, unimaginable.

The good news is that most people have ample space to manage it—it just doesn't seem like it. And everything just gets lost in the detritus of life.