Stress in household debt

To read the original version of this comment in the original context at Macrobusiness.com.au click this link. (link may be locked – but there is a free trial available)

Nice work!

As much as the finance-housing complex like to keep telling people that there is nothing to fear because disposable income and employment are holding up, that debt albatross is starting to develop a nasty odour.

Even if they are meeting their debt payments people are no longer so sanguine about their debt as a multiple of their income.

It is one thing to say higher debt makes people more sensitive to interest rates movements.

I think it is more accurate to say it just makes them more sensitive generally whether or not interest rates actually move.

All these international gyrations is inducing a lot of twitchy behaviour among the heavily indebted even while they keep their jobs and interest rates remain stable

…and this

Yes about as stable as one hand one finger typing!

I should have put inverted comma’s around keep and stable but typing on an ipad on a speeding Parra-City express standing in the vestibule area is a challenge.

I completely agree that going forward international gyrations may be the least of the things producing twitchy behaviour in those carrying debt many multiplies of their disposable income (Note: not the Joye measure).

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