pommie bastard

Makes good reading as its been pointed out before Aussie banks will over lend to mug punters.


Housing investors racked up a record $6.88 billion in debt in June amid Reserve Bank warnings that aggressive lending practices by financial institutions may cause distress when the housing bubble "inevitably" bursts.

In a quarterly statement on the economy, which further dashed hopes of a lower interest rate and sent financial markets scrambling, the Reserve said yesterday housing debt had been rising at an unsustainable rate, suggesting it was a serious threat to Australia's economic prosperity.

"There are few signs yet of (housing) pressures easing off," it said. "The risk presented by these developments is that, the longer they go on, the larger will be the contractionary effect on the economy when they inevitably turn."

SteveBannister

Yeah, yeah, same over here…..£878bn compared to you're measly $6.88bn

Nine-year high in bankruptcy prompts fresh fears over debt

By Christopher Swann, Economics Correspondent Published: August 2 2003 5:00

More people are going bankrupt than at any time for the past nine years, heightening fears that consumers are loading themselves with unsustainable levels of debt.

Data from the Department of Trade and Industry revealed a 14 per cent rise in the number of personal bankruptcies in the three months to June compared with a year ago. This means that about 100 people are becoming insolvent every day.
The rise in bankruptcies is particularly worrying at a time of low interest rates and low unemployment.
Earlier this week figures showed a £10bn rise in total borrowing between May and June - the largest recorded monthly increase.
Equally worrying has been the persistent rise in unsecured borrowing, which shot up by a record £2.2bn in June alone. The rise took total household debt to £878bn, equivalent to about 120 per cent of disposable income. Even after the boom of the 1980s this figure only reached 95 per cent.
The Bank of England's monetary policy committee has repeatedly expressed concern that consumers are accumulating debts which may ultimately prove unmanageable. Many economists fear the rise in personal indebtedness could lead to a sharp slowdown in economic growth as consumers are forced to rebuild savings.
PwC, the professional services company, said there was now less stigma attached to bankruptcy. As a result an increasing number of people choose to default rather than reschedule debt.
"For many people it is more attractive to go bankrupt rather than struggle with high levels of repayments," said Patrick Boyden, partner at PricewaterhouseCoopers. "With few penalties attached, people with nothing to lose are choosing insolvency to cleanse their debt.
"The sharp rise in individual insolvencies should ring alarm bells about the downsides of the expansion of consumer credit."
However, the number of companies becoming insolvent fell by 6.9 per cent in the second quarter of 2003 compared with the same period in 2002. PwC said this partly reflected the increased support banks and creditors gave viable businesses. In total 8,455 companies declared themselves insolvent in the first half of 2003, a fall of 9 per cent on the same period last year.

Stoney

You really are struggling for "scare" stories if you are having to post crap like this.
Hurry up back to debtors paradise.

pommie bastard

Already live in it no bank in the UK would lend amounts that compare to here on small incomes.