The median household in Australia has debts that amount to just 8% of total household assets.
According to academic economist Mark Wooden, claims of a debt crisis in Australia are unfounded, but young people lured into debt by first home owners grants could get themselves into trouble. Unless there is a big rise in unemployment says Wooden, there will be no widespread debt problems in Australia.
The bulk of household debt in Australia is held by wealthier families with a good capacity to repay. Less than 10% of households had excessive debt in 2006, before the onset of the global economic crisis says Wooden. Debt has served Australian families and the economy well since the 1960's says Wooden.
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