Borrowers take advantage of lower rates to reduce debt

Australian borrowers are determined to use lower interest rates to get ahead on their mortgages and overall financial situation.

According to the Australian National Relatailers Association (ANRA), approximately 75% of consumers are continuing to put the same amount towards their mortgage repayments, despite the lower interest rate environment.

Of the remaining 25% who had reduced their regular repayments, 12% were using that extra money to pay down other debts. Approximatley 11% were directing it towards living expenses such as groceries and bills.

Just three per cent said they were spending the money on discretionary items such as households goods and clothing.