Wealthy Sydneysiders 'feeling the pinch'

The affluent suburbs of western Sydney are the latest region to be hit by a mountain of personal debt accrued through high interest rates on home loans and large credit card bills, a charity has claimed.

According the a Salvation Army financial counsellor, the charity's workers in the area have been inundated with requests for debt help over the last few months, as rates have risen and the credit crunch has started to bite.

The easy accessibility to credit - in the forms of overdrafts and credit cards - combining with a fluctuating global market and decade-high interest rates have meant that even the wealthiest parts of Australian society are struggling to cope, Salvos' Moneycare counsellor Sandra Saker said.

In speaking to the Parramatta Sun, Ms Saker stated that rising fuel and food prices were also adding to the growing financial pressures and that the suburbs could be a surprise hotspot for debt problems.

She said: "It isn't just the people who traditionally have done it hard, it's now average families who are getting caught up in rising interest rates, petrol prices and food costs, as well as falling property values.

"It is not unusual for regular families to come to us having bought a house for $500,000, on which they owe $400,000, but now is only worth $300,000.

"If they are forced to sell they have a residue debt."

In his first budget as treasurer earlier this week, Wayne Swan outlined proposals to tackle the growing personal debt problems across the nation.

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