Rising household debt leaves many Australians feeling financially strained
- May 21
- 1 min read
Australia may be one of the world’s wealthiest countries, but many households are still feeling financial pressure.
Economists say rising household debt is a major reason why many Australians feel financially stretched, despite the country’s strong economy.
Australia currently has one of the highest household debt levels globally, mainly driven by expensive housing and large mortgages. Average household debt is estimated at more than 200 per cent of disposable income higher than countries like the US, Canada and Japan.
AMP deputy chief economist Diana Mousina said Australians’ strong focus on home ownership has increased financial pressure, especially as interest rates and living costs continue to rise.
However, she noted that many Australians also hold valuable long-term assets such as property and land, which helps balance the debt burden.
Despite concerns about the economy, Australia still ranks among the happiest countries in the world and continues to maintain a stable financial system and strong long-term economic outlook.
Experts say the issue may not only be financial stress, but also how Australians perceive the current economy after years of relatively strong living conditions.
Source : 9 News
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