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Date Published : Monday, April 21, 2008
The average Australian has more money in assets and savings accounts than they ever have before, new research has revealed.
Figures from the Treasury and the Australian Bureau of Statistics have found than the collective wealth of Australians increased by 3.3 per cent during the last three months of 2007 to a record $5.38 trillion.
This means that despite rising interest rates and record personal debts, the average Australian now has just over $254,000 in assets - an increase of $22,000 on the same period in 2006.
The Courier Mail also reports that the total debt across the nation fell by 1.1 per cent to $571 billion, as Australian consumers cut down on credit card use as a result of high interest rates and the ongoing global credit crunch.
CommSec chief equities economist Craig James told the newspaper: "We may not feel wealthy, but the latest figures indicate we are.
"Importantly, while wealth has continued to advance, debt levels actually fell in the latest quarter.
"The financial position of Australian households remains very, very good, providing good insulation from the more volatile times on financial markets."
Recently, figures from the Reserve Bank of Australia showed that the total debt put on to credit cards has slowed to its lowest rate in 13 years, as Australians become wealthier and are more aware of their spending.
The average credit card balance rose by 1.8 per cent during the month of February this year to $3,085.
During 2007, the average balance outstanding on credit cards grew by 4.2 per cent - the slowest since records began in 1995 - despite rapidly rising interest rates and the uncertain global financial climate.
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