West Australians Reduced Debt Stress

Whilst some West Australians continue to experience financial difficulties, a study has revealed that the majority of West Australians are managing their debt effectively.

A twice yearly report, The Australian Debt Study, found that purchasing property is still the primary reason why West Australians owed more money than they did 12 months ago, increasing dramatically from 22 per cent in March 2010 to 43 per cent in September 2010. This is up from 34 per cent in September 2009.

While it was also found that 75 per cent of West Australians worry about the ability to repay the debt over 12 months, this figure had fallen by 7 per cent from the March 2010 high of 82 per cent.

It was no surprise to learn that rising interest rates, food costs and living expenses remained a primary cause of concern.

In other findings, credit card ownership has dropped by 5 per cent to 63 per cent and 65 per cent of people surveyed intended to reduce the amount of debt on their credit card over the next six months – 48 per cent intending to reduce the full amount.

Despite overall improving results, 12 per cent of West Australians have missed a minimum bill repayment in the past three months.