Australians addicted to debt

The research revealed that 23 per cent of Australians claim to be in more debt than 12 months ago, and a quarter say nothing they do will make a big difference to their finances.

While the research showed that borrowers are taking on more debt than ever, there was only a slight improvement in their levels of comfort to repay it – from 16 per cent in 2013 to 14 per cent in 2014.

Furthermore, 36 per cent of Australians live from pay cheque to pay cheque, while 37 per cent admit they scrimp and save to make ends meet.

When it comes to the generations, 35 per cent of Gen Y and Gen X feel like they are always in debt, compared with 21 per cent of baby boomers.

RaboDirect group executive Greg McAweeney warned that our attitudes to debt may have seen too many of us start the new year in the red, especially after the festive season, when personal budgets might have spiralled out of control.

“While debt is a fact of life for most people, the way it is managed can mean the difference of being in financial control or being out of control,” he said.