Rise in personal borrowing in Australia
Recently released figures have suggested that there has been an increase in personal borrowing amongst Australian consumers.
According to a recent report the level of personal borrowing amongst consumers in Australia has soared to its highest in six months, with borrowers hoping to refinance existing loans in a bid to try and make the most of lower interest rates. This has resulted to personal borrowing rising to a six month high.
Figures from the Australian Bureau of Statistics show that there was a rise of over four percent in personal borrowing in December compared to the previous month. This was the biggest monthly rise since June of last year, and was the first monthly rise in personal loans since September of last year.
November saw a decrease in personal borrowing to the tune of nearly two percent, and one industry official has said that the increase seen in December was an encouraging sign that showed households were still willing to borrow and spend despite the effects of the global credit crunch.
The official stated: “Personal lending rose right across the board including a very substantial 24 per cent rise in loans to buy new cars. There is still some degree of caution by consumers but that seems to be easing with the generational lows in interest rates.”
The rise in personal borrowing that was seen in December equated to over six billion dollars worth of personal borrowing. However, officials will now be keeping a close eye on the situation to see whether borrowing levels are adversely affected by the ongoing economic and financial downturn.