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Maybe if you are young.
The one good thing is, I feel very happy for the fortunate person or couple whom you bailed out by giving them market value for an asset which is experiencing significant capital loss and will continue to do so well into the future.
I'd like to think that they are smart and will rent from here on out.
Once they all start to panic and the prices tanks another FHOB or some taxpayer funded scam will be introduced to prop up the government.
The smart ones are being hung out to dry for being smart and saving when they should be out pumping up the bubble.
MOUNT DRUITT, Campbelltown and Liverpool have emerged as Sydney's bankruptcy hot spots as families succumb to mounting credit card debt and chronic unemployment.
The three suburbs topped a list compiled by the federal agency Insolvency and Trustee Service Australia, which revealed the NSW postcodes most vulnerable to bankruptcy last financial year.
The 2770 postcode - Mount Druitt, Minchinbury and surrounds - was the worst affected, with 163 bankruptcy declarations.
In the Campbelltown area postcode of 2560, 146 debtors slipped into the red, closely followed by 144 in the Liverpool-Casula postcode 2170.
The central coast postcodes of 2259, 2250 and 2261, which centre on Lake Munmorah, Gosford and The Entrance, rounded out the top six with 100 or more bankruptcies each.
It is the first time ITSA has published personal insolvency activity by postcode. The data is not adjusted for the variation in population between postcodes. Sydney's well-heeled suburbs were not immune to financial distress. In the wealthy 2088 postcode, which includes Mosman and Spit Junction, 22 debtors filed for bankruptcy. It was closely followed by 19 in the 2030 postcode of Dover Heights and Vaucluse.
Despite falling interest making it easier to pay down loans, Australian households now owe almost $1600 billion, a 28 per cent rise in just five years, and economists say our personal borrowing levels are among the highest in the world.
The latest Reserve Bank of Australia figures show housing debt is the biggest factor. Meanwhile, people are paying high interest rates ”” averaging 17 per cent ”” on almost $33 billion of credit card debt that fails to get repaid every month.
Contrary to the point of the article, looks like it has gone down a bit from $36b when I first made this
I remember seeing a US debt clock page, but now we have a credit card debt clock for Australians here:
https://www.moneysmart.gov.au/borrowing-and-credit/credit-cards/credit-card-debt-clock
According to that, Australians with credit cards owe $36b in total, which means an average debt of $4,700 per credit card holder, paying $800 in interest per year.
Should we be worried? What happens if everyone defaulted on their credit cards? I mean, it's kinda different to mortgages because it's an unsecured debt, so would the consequences be serious?
Also, I am not sure how 'accurate' the painted picture is - does that mean people have a net wealth of -$4,700, or just that they have a debt of $4,700 but could have other assets worth more than enough to cover it?
Do you know anyone who thinks it's ok to just pay the minimum per month?
I used to work on a customer service line at a bank and -4.7k with no savings seems oddly familiar.
Some people must owe an awful lot given that there are others, like me, who pay the full outstanding balance each month and thus pay zero interest.
I just find it weird anyone would pay 17%, like you Smurf had a credit card for ever and move 99% of my transactions through it but never ever pay interest. Only linked it the other day to a saving account so i could get cash occasionally.
I remember seeing a US debt clock page, but now we have a credit card debt clock for Australians here:
https://www.moneysmart.gov.au/borrowing-and-credit/credit-cards/credit-card-debt-clock
According to that, Australians with credit cards owe $36b in total, which means an average debt of $4,700 per credit card holder, paying $800 in interest per year.
Should we be worried? What happens if everyone defaulted on their credit cards? I mean, it's kinda different to mortgages because it's an unsecured debt, so would the consequences be serious?
Also, I am not sure how 'accurate' the painted picture is - does that mean people have a net wealth of -$4,700, or just that they have a debt of $4,700 but could have other assets worth more than enough to cover it?
Do you know anyone who thinks it's ok to just pay the minimum per month?
Fast forward 4 years and the total owed by Australians has been reduced to $32b, giving an average debt of $4,300 per credit card holder, paying $735 in interest per year.
Looks like Australians are doing the financially savvy thing by paying off their credit cards.
That's right. People do what they want and that is fine unless their actions infringe on other people like passive smoking or king hits or crashing a vehicle on drugs or fix em up costs paid by taxes.This is the whole problem regarding debt, gambling, smoking, drug use, etc.
You can't legislate, to stop people doing, what they want to do.
I suppose in a broad sense credit card debt or overall personal debt may be an issue but, after quite sometime, I've concluded I can do absolutely zilch about the debt of others so now I only concern myself with managing my commitments to ensure I never over extend myself to the detriment of my family.
I have encountered a number of individuals who have got themselves into a little bit of strife with cc and other forms of debt and while saying in response "Not good. Hope it works out for you," mentally I take the position "You're an adult, you made a choice, so deal with it." Very mean of me and very indifferent to their plight I agree.
I remember seeing a US debt clock page, but now we have a credit card debt clock for Australians here:
https://www.moneysmart.gov.au/borrowing-and-credit/credit-cards/credit-card-debt-clock
According to that, Australians with credit cards owe $36b in total, which means an average debt of $4,700 per credit card holder, paying $800 in interest per year.
Should we be worried? What happens if everyone defaulted on their credit cards? I mean, it's kinda different to mortgages because it's an unsecured debt, so would the consequences be serious?
Also, I am not sure how 'accurate' the painted picture is - does that mean people have a net wealth of -$4,700, or just that they have a debt of $4,700 but could have other assets worth more than enough to cover it?
Do you know anyone who thinks it's ok to just pay the minimum per month?
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