Household debt – the glass is half full

The recent article by Michael Pascoe in the SMH makes some good points about household debt. He says…..

“The record-household-debt story is more common than bushfire warnings.”

What the commentators neglect to say is the other half of the argument is because interest rates are so low, servicing of household debt is the easiest it’s been in 14 years.

He goes further to say another important piece of information is the “net household debt story.” Net household debt is loans minus cash and other financial assets. This peaked in 2006 and has been relatively flat for 10 years.

Also, the ratio of household debt to assets is the best it’s been in a decade.  This is good news we never hear about.

Click here to read the full article:  SMH Michael Pascoe

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