Ellerfield Financial planning

RISING levels of consumer debt and another spate of interest rate hikes could soon cut into people's savings and lead to more credit defaults, economists say.

But as the resources sector helps push the Australian economy from strength to strength, some economists believe household wealth is likely to remain at healthy levels, thanks to a bright employment outlook.

JP Morgan economist Helen Kevans said there was now a good chance that the Reserve Bank (RBA) would lift the cash rate by 100 basis points over the next year, putting interest rate burdens "back to pre-crisis levels".

AGEING baby boomers will ensure the next generation sees none of the house price appreciation that they enjoyed.

A study by the Swiss-based Bank for International Settlements says the ageing of the population means house price increases over the next 40 years will be about 30 per cent less in Australia than they would otherwise have been.

The study says that share prices will also suffer as an increasing share of the population retires and starts living off their capital.

HOUSEHOLDS have taken on $86.3 billion more debt in the past year, but research reveals Australians are getting personal debt under control at the expense of lower personal savings.

Data crunched by comparison website RateCity shows that households owed $771 billion in June, 12.6 per cent up on a year earlier. The debt total consists of owner-occupied mortgages, credit cards and personal loans.

Pizza Dough
Also Gluten Fee Pizza Dough recipe below

Chargrilled Zucchini & Riccotta Pizza

Preparation Time:      Cooking Time:
10 minutes                30 minutes


Ingredients (serves 6)