Powered by MOMENTUM MEDIA
Powered by MOMENTUM MEDIA
subscribe to our newsletter
subscribe to our newsletter

More Australians paying down debt

More Australians are choosing to forgo holidays and other luxuries in favour of paying off debt, according to a new survey by homeloans.com.au.

The group’s 2015 Tax Refund Survey revealed that over half of respondents who expect to receive a tax refund this year will use it to reduce personal debt more than anything else.

Approximately 35 per cent of respondents said they will put their tax return towards non-mortgage debt such as credit cards, while almost a quarter said they will put it towards their mortgage.

Advertisement
Advertisement

Will Keall, national marketing manager at homeloans.com.au, said the results are pleasing as they show more Australians are attempting to get their finances under control.

“We applaud that, because the pathway to housing affordability is significantly smoothed if people can approach a potential lender with a proven ability to repay debt. It also helps people to save for a home deposit if they can put the money they would otherwise pay on credit card interest repayments into the bank instead,” he added.

The survey revealed that the younger generation are particularly cautious about paying off debt with their tax return.

A third of respondents aged 18-24 years old said they plan to invest or save the money, while a quarter plan to put the refund towards personal debt.

The remainder of this demographic said they plan to use their tax return for a home deposit or to reduce their mortgage.

“This is the generation born after the 1990s and these results reflect their more prudent approach to life,” Mr Keall said.

“But that doesn’t mean they’re all work and no fun. This is also the group that more than any other has plans to travel, with more than a third telling us that they would use their expected refunds for a holiday.”

More Australians paying down debt
mortgagebusiness

Latest News

New APRA data has revealed that ANZ was the only big four bank to record negative home lending growth before the coronavirus outbreak altere...

The rapid move to support digital mortgages amid the coronavirus pandemic “will have a dramatic effect” on how people will transact on m...

Mortgage holders will be breathing a “sigh of relief” following the federal government’s announcement of a new $130-billion support p...

FROM THE WEB
podcast

LATEST PODCAST: Further relief for SMEs and borrowers

Do you think Australia will move to quantitative easing this year?

Why we’ll keep delivering for our communities in the face of COVID-19

alex

As Australia tries to keep pace with a rapidly changing business and social landscape in the wake of COVID-19, Momentum Media is leading the way delivering essential content to our communities, writes Alex Whitlock, director of Mortgage Business.

Read more

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.