Originally Posted by northernlights

Unfortunately, Australia favours the guy who is in debt and not the prudent saver.

If I have a big mortgage and can’t afford to save, therefore no savings and lose my job, I can have a year ‘mortgage holiday’ from the bank and claim Centrelink benefits.

If I have savings, due to being careful and prudent by not getting mortgaged up to the max, lose my job, then I can’t claim Centrelink because I have savings (I believe over $4000K) . No-one will give me a ‘mortgage holiday’.

So the message is, get mortgaged to max, don’t worry about saving for a rainy day because Krudd and his cronies will save you.

Originally Posted by kar-kier

We don't have a weeks worth of savings, never mind a months!!!

Having recently moved to Oz from UK, I'd def say they are in a worse position than an us.

Originally Posted by ABCDiamond

Those mortgage holidays are not interest free though, so the debt just gets bigger. I would still rather be prudent, and reduce my debts, than take a mortgage "holiday" and increase my debts.


The savings threshold, (Liquid assets) for benefit is:
$5,500 if you are single
$11,000 if you are a couple, or single with dependants
If your liquid assets are above this amount, there will be a liquid assets waiting period, which can vary from 1-13 weeks.
There are exemptions from the liquid assets waiting period, that many people are able to opt for...

The normal asset test, after the liquid asset test period, is $178,000 for a single person full benefit or $500,000 part benefit, (not including your own house).
http://www.centrelink.gov.au/interne...ts/chartab.htm

Originally Posted by the troubadour

For the moment would agree but wait there is every chance the worst is yet to hit Australia. Hope i am wrong but next year may well see a decline in confidence and all that entails as the recession bites.

Originally Posted by bcworld

These people had around 10...and another on the way. The jist of the story was that they couldn't fit into their existing (free) house and would like another one thank you very much. Sound familiar? Of course it could've just been sensationalist journalism to bait the masses into a reaction - they didn't think of the asylum seeker angle though. Hmmm.

Originally Posted by the troubadour

For the moment would agree but wait there is every chance the worst is yet to hit Australia. Hope i am wrong but next year may well see a decline in confidence and all that entails as the recession bites.

Originally Posted by Centurion

You say that but the NAB just only today have revised its estimates on interest rates to hold now at the lowest and then go up again toward 2010. Interesting times.

Originally Posted by ABCDiamond

Nor did I.. I expected them to be reasonably similar, and had to check a few sources in case I was getting it wrong.

I admit I am still not 100% sure how it could be right, but until I see contrary to that, it does appear to be the case.

Another interesting article seems to show that most debt is held by the richer class, and therefore throws the averages out.
Few of us living beyond our means

Originally Posted by ABCDiamond

I think the answer to your question is No.

But I do agree with your question, in general, on the stupidity of using more credit than a person can afford.

I wonder how many Ozzys now think it is OK to ask "Are the British that stupid to have so much credit card debt?"

Originally Posted by Burbage

Put it another way, would you rather be a bank in Australia or in the UK?

Originally Posted by sr71

But exchange rates are complex and subject to many factors. Just because one has dropped by 24% vs 10% it doesn't mean that there is a 'normal' level that they will return to.

If indeed you are able to predict currencies so accurately then you would be extremely rich.

What exactly does the UK export these days?

Originally Posted by brendarover

Police are out in force this morning? Hello hello, what we got here then? Makes me laugh, are we in the early stages of an Orwellian forum? Defend Oz at all costs, do not allow free speech by way of posts? Why have two forum moderators jumped all over and on this thread? Turning the Authoritarianism screw maybe? Power is something which once held is difficult not to over enforce? A good moderator will always not allow his or her own opinion muddy the debate of an open forum? Have i broken another rule, questioned a moderator? Rules rules, in the UK and in Oz rules, they will kill society stone dead. Brown is a dictator, been described as a mafioso boss, do we really need this kind of society, nope. I just hope Rudd does not try to mimc Brown, if he does, well god help us all, remember i am an Ozzy now.

Originally Posted by Centurion

I really don't see how this is situation is unique to Australia. Does every person in the UK have savings of more than a months worth of expenses ? Do they heck. Google credit card debt and the UK.

Having just been to the UK myself last week if anyone wants to see dire economic outlook feelings from the general public it is there. Facts remain that Australia has weathered the economy better than any other westernised nation to date and has not slipped into recession (although you don't call it that in the UK - its impolite, you call it a credit crunch).

I think the abc is short on decent news today.

Originally Posted by viviennef

but hey, I'm happy. and I have a nice swimming pool and am getting stupider by the minute.

vivienne