So if Australians have the highest personal debt in the world on mortgages and credit cards, how are they going to spend the money to allow business to grow. The only people making any money in Australia it seems are the banks, Woollies and Coles, the real estate agents, big car dealers and the petrol companies and the government. The mass population is paying top dollar for everything and their houses are sky high expensive. What is going to cause these people to have all of a sudden extra wealth that will then be invested? So how exactly is this going to turnaround and become a prosperous lucky country again? Just asking.
Australia's high personal debt
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More debt, until it all implodes.
Turnaround might require a large cultural shift away from the very popular "if I achieve x and acquire y, then I will finally feel full/satisfied/loved/peaceful/happy".
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More free trade agreements; Less red tapes; Less environmental protection; Less tax so we'd be as "competitive" as other nations in not taxing; lower the legal working age to 10 - those kids better earn their way and learn that the state is no nanny...
Tisme
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Yes standard of living aspirations are so overated ....we should take a leaf from our neighbours on how to be happy and prosperous.
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What's the old saying...
"there are only two ways to generate true money - you farm it or mine it" (something like that?)
We only have so much viable mineral resources and productive farmland - once the capacity of these resources are overtaken by the population we will become like Greece.
But with any luck climate change will turn the vast wasteland of Australia's interior into productive farmland. It's a long shot but if the butterfly effect can do its magic on the climate models, Aust. will be king of the world.
So, as long as we can keep exporting "stuff" the Government can keep subsidising the average joe blow zombie out there and we'll all be happy. Population growth can continue, house prices will keep up ect...
If a we can generate free money by mining / farming faster than the others in the world - the party will go on.
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Let's not hope for Climate Change so Australia can grow shall we?
For one, it will create more refugees and Nauru will have gone under along with all them potential Pacific solution. May need to ship them off to what few hilltops that was Tasmania. That or Indonesians will start rowing over and our submarines can only do so much.
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Yes standard of living aspirations are so overated ....we should take a leaf from our neighbours on how to be happy and prosperous.
For sure. Going the way of them tigers and dragon works wonders for the some part of the country and a handful of them people. Wait, we're there already aren't we?
Not yet? I guess cheap airfare and freedom to crack jokes at our dear leaders is enough to show those whiny Aussies how much better they have it compare to them black haired folks.
PZ99
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PZ99
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Credit card users struggling under mountain of debt that may never be repaid, ASIC report shows
One in six consumers is struggling under a mountain of credit card debt that might never be repaid, according to alarming research by the corporate regulator.
Key points:
The study said banks and credit card companies were in the midst of a revenue bonanza with interest being reaped on $31.7 billion of that $45 billion debt figure.
http://www.abc.net.au/news/2018-07-...users-struggle-under-mountain-of-debt/9936826
My GF is caught up in this brainfartiyessness. It beggars belief. I told her to join ASF and win every tipping comp for the next 12 months if she thinks money can grow on trees this easy...
Presumably it's just consumers following the logic of spending by the last few federal Govts
One in six consumers is struggling under a mountain of credit card debt that might never be repaid, according to alarming research by the corporate regulator.
Key points:
- New report by ASIC shows that Australians owe $45 billion in credit card debt
- More than one in six Australians — around 1.9 million people — are struggling to repay their debt
- Despite new regulations in 2012, not all credit providers are proactive in countering persistent debt
The study said banks and credit card companies were in the midst of a revenue bonanza with interest being reaped on $31.7 billion of that $45 billion debt figure.
http://www.abc.net.au/news/2018-07-...users-struggle-under-mountain-of-debt/9936826
My GF is caught up in this brainfartiyessness. It beggars belief. I told her to join ASF and win every tipping comp for the next 12 months if she thinks money can grow on trees this easy...
Presumably it's just consumers following the logic of spending by the last few federal Govts
It is a worry. I wonder if the decline of cash and the rise of online and tap and go payments are the major offenders. Easy credit doesn't help.Credit card users struggling under mountain of debt that may never be repaid, ASIC report shows
One in six consumers is struggling under a mountain of credit card debt that might never be repaid, according to alarming research by the corporate regulator.
Key points:
The Australian Securities and Investments Commission (ASIC) report showed 18.5 per cent of consumers were overwhelmed by their credit card debt load with outstanding balances now totalling $45 billion.
- New report by ASIC shows that Australians owe $45 billion in credit card debt
- More than one in six Australians — around 1.9 million people — are struggling to repay their debt
- Despite new regulations in 2012, not all credit providers are proactive in countering persistent debt
The study said banks and credit card companies were in the midst of a revenue bonanza with interest being reaped on $31.7 billion of that $45 billion debt figure.
http://www.abc.net.au/news/2018-07-...users-struggle-under-mountain-of-debt/9936826
My GF is caught up in this brainfartiyessness. It beggars belief. I told her to join ASF and win every tipping comp for the next 12 months if she thinks money can grow on trees this easy...
Presumably it's just consumers following the logic of spending by the last few federal Govts
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The Australian dollar has to drop a lot in value. Easy if you have a regulated currency, not so easy if your currency is floated, then you have to wait for the markets to do it.
Value Collector
Have courage, and be kind.
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Money isn't wealth, money is just a unit of exchange.
Australia is a very rich nation, we have lots of wealth, Sure not every Australian feels "wealthy", but in general they are consuming products and services at rates that would make most other countries drool with envy, and make our ancestors from 100 years ago blush.
Most "poor" Australians are not "poor" by global standards.
If you compare what Australia looked like in 1788 when the first fleet arrived, and compare it to the real wealth we have now, it's night and day. As I said real wealth is not money, its the real installed assets and working capital of the nation.
Anyone can build up an ownership stake in the real wealth of Australia if they want to, But if you are just focussing on taking on debt so you can consume more, obviously you won't.
And if debt is offset by real assets, it kind of cancels its self out, the total debt figure doesn't tell you anything, eg if some one borrowed $5000 to buy solar panels, then the debt would show up as personal debt but there is a productive assets thats been generated that will contribute more than $5000 over its life back to the Australian economy.
Value Collector
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This video shows how you can really set yourself up by not trying to keep up with the jones and earning interest rather than paying interest.
I know the guys rate of 12% is a bit high, but the principle is sound, if parents taught their kids methods like this, we could cut out the hyper consumption based debt, and build families real wealth.
Here is how to get "Free cars" for life.
I know the guys rate of 12% is a bit high, but the principle is sound, if parents taught their kids methods like this, we could cut out the hyper consumption based debt, and build families real wealth.
Here is how to get "Free cars" for life.
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Credit cards just enable people to spend their pay, before they get it, then wonder why they can't afford the 'stuff' they want to buy on payday.
It really has brought about a society, who want 'it' and want 'it' now, without respecting the fact that they will have to pay for 'it' sooner or later.
But as you say VC, in comparative terms, we have never been wealthier.
Even those on welfare, if they manage their money wisely, can get by.
Most Countries of the World have no welfare, if you don't work you don't eat, if you don't eat...
Credit as recently as the 1970's, was extremely difficult to access, therefore people were forced to live within their means.
With the deregulation of the financial systems, the access to credit has become easier, to some it is difficult to control the urge to use it for whatever the purpose.
Some use it to make ends meet, but if they weren't making ends meet before putting it on credit, why do they think they will be able to when the bill comes in.
Some use it to gamble on winning, but double their loses, if they loose.
So is the answer, to just stop credit cards and only have debit cards?
Go back to the days, when you had to apply for a personal loan to get credit, at least then it takes more effort, than pointing your mobile phone at an eftpos machine.
The Government, Banks and retail sector, would spew.
It won't happen they love people being in debt, much easier to control people, who have their head down and ar$e up.
Then your political debate can revolve around, he/she called me a name, this politician's grandfather was born overseas, makes politics easy.
You don't have to address the 'Big Issues'.
Value Collector
Have courage, and be kind.
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Yep, I agree.
Back in the day you had to go and Hock an Item at the local pawn shop if you wanted to spend more than you earned that week.
Not only was Hocking stuff harder logistically, there was social stigma.
But credit cards allow people to over spend without the social stigma, and its easy.
Not to mention that people have more "ends to meet", no one wants to reduce their life style, they are quite happy to spend 10% more than they earn each week, but eventually that debt incurred each week gets very heavy.
As I said, we need to just teach people to live on 90% rather than 110% of their earnings, and they will get richer and richer as time goes on, otherwise they explode.
and the credit card companies don't care if you explode 10 years down the track, because at 25% interest, + transaction fees, they are well ahead anyway, especially if you never explode and just limp along for life.
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Paying off a mortgage is getting harder, but some can do it.
https://www.domain.com.au/news/its-...-retirement-than-ever-before-20170407-gvcylg/
Value Collector
Have courage, and be kind.
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Value Collector
Have courage, and be kind.
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Even if you hit retirement with some debt on your home, you will probably still be better of than a renter.
A Lease is still a debt, and once you get over the midway point through your home loan, the interest cost on the loan is much smaller than the lease costs.
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Another funny thing is, in the poorest Countries, home ownership is amongst the highest in the World.
https://www.worldatlas.com/articles/countries-with-the-highest-home-ownership-rates.html
So it isn't all, just about, what you earn.
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