Calls for debt diet increase

Westpac chief Gail Kelly has added her voice to the growing sentiment that Australians need to stop living beyond their means.

In a written article published by the AFR, Kelly stated "Australians have long borrowed more than we have saved... While essential to support growth in the economy, this reality has created a reliance on global capital markets that means that we cannot long ignore any new regulation that comes to bear in this area".

RBA figures reveal that mortgage, credit card and personal loan debts are at $1.2 trillion - up 71% from five years ago, which averages out to $56,000 for every man, woman and child in the country.

This exposure to debt places many borrowers under extreme pressure - making them more vulnerable to rate rises. If you have a home loan, we recommend that you speak to your mortgage broker about a free home loan health check. Speak to the mortgage brokers at Intellichoice about a home loan health check. We will help ensure that your home loan is still the best product for you based on your current circumstances. We can also assist with your credit card debt consolidation and more.