CoreLogic: Higher income families most over-indebted

CoreLogic’s Cameron Kusher has penned another interesting report examining the ABS’ biennial 2015-16 Household Income and Wealth Survey, which contained a treasure trove of data on over-indebted households:

The ABS consider a household to be over indebted if their debt is either three or more times their income, or 75% or more of the value of their assets. Based on these measures the ABS considers 21.6% of households to be over-indebted, 51.9% of households to be not over-indebted and 26.4% of households have no debt.

The first table shows that households with the lowest disposable income are the least likely to be over-indebted while the fourth quintile households are most likely to be over-indebted. Based on these findings, households with higher incomes are less likely to be debt free and are more likely to be over-indebted than lower income households.