Aussies still shunning debt. Unless it’s for a new home

Wednesday 23 December 2020

Yesterday’s private credit data from the RBA showed that personal credit continues to hover near its lowest level on record:

The outstanding stock of personal loans fell by a near record 12.4% in the year to November, easily eclipsing the falls experienced during the early-1990s recession (-6.0%) and the GFC (-7.8%).

The only area where Australian households are gearing up is property purchases:

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About the author

Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.