Keeping One Step Ahead article. Ad

1. Keeping one
step ahead
AUSTRALIA’S
HOUSEHOLD
SAVINGS RATES
Source: Commonwealth Bank, Bureau of Statistics
Income saved:
2003-04 0.8%
2004-05 0.8%
2005-06 0.3%
2006-07 4.3%
2007-08 4.3%
2008-09 9.6%
2009-10 9.3%
2010-1110.8%
2011-12 10.8%
Making extra home loan payments is an increasingly key
focus for Australian savers, writes Anthony Keane
MORE than two-thirds of
homeowners are ahead of
their mortgage payments and
Aussies are saving the biggest
slice of their income since the
1980s, research by Australia’s
biggest bank has found.
A new Commonwealth Bank
analysis paints a more positive
picture of Australians’ finances
than many people may feel.
CBA’s study of its 1.8 million
home loan borrowers has
found 68 per cent are ahead of
their mortgage repayments, by
an average of seven payments.
It also examined household
savings rates and found that
Australians are now saving
10.8 per cent of their disposable
income, up from just 0.3 per
cent in 2005-06.
A 6.2 per cent rise in con-
sumer spending in the past
year, rising salaries and low
unemployment round out its
review of a solid 2012.
‘‘There is an abundance of
pessimistic news about the
economy, particularly because
the picture in Europe is bleak,
and this can create a perception
that doesn’t reflect some of the
positive things happening in
Australia,’’ CBA chief econom-
ist Michael Blythe says.
‘‘It is tough for many con-
sumers and businesses at the
moment but the patchwork
nature of our economy means
some positive indicators might
be missed.’’
Blythe says the trend of
saving more started in the mid-
2000s but was given ‘‘a huge
kick-along’’ by the global fi-
nancial crisis.
He says most households are
still pessimistic about the out-
look, and this has been a key
reason for the Reserve Bank’s
interest rate cuts this year.
‘‘The Reserve Bank is mak-
ing it clear that they want to see
more activity in the non-
mining part of the economy,
and housing is one of the areas
they are looking to get mov-
ing.’’ It is estimated every $1 of
spending on new housing gen-
erates another $1.31 of spending
elsewhere in the economy.
Assist Finance chief execu-
tive Jason Di Iulio says the
increased focus on debt repay-
ment and savings illustrates
that people are nervous about
the economy and their jobs.
‘‘They are reducing debt at
the expense of luxury spend-
ing,’’ Di Iulio says.
The trend of maintaining
mortgage payments at the
same level even when rates are
cut is a smart move, he says.
‘‘It will reduce debt faster
and take real advantage of the
rate cuts,’’ he says. ‘‘If you
have non-income-producing
debt, you should be paying it off
as fast as possible, which will
benefit you later in life.’’
CBA’s Blythe says building
up a buffer in the mortgage is
attractive for most people.
Keeping one
step ahead
AUSTRALIA’S
HOUSEHOLD
SAVINGS RATES
Source: Commonwealth Bank, Bureau of Statistics
Income saved:
2003-04 0.8%
2004-05 0.8%
2005-06 0.3%
2006-07 4.3%
2007-08 4.3%
2008-09 9.6%
2009-10 9.3%
2010-1110.8%
2011-12 10.8%
Making extra home loan payments is an increasingly key
focus for Australian savers, writes Anthony Keane
MORE than two-thirds of
homeowners are ahead of
their mortgage payments and
Aussies are saving the biggest
slice of their income since the
1980s, research by Australia’s
biggest bank has found.
A new Commonwealth Bank
analysis paints a more positive
picture of Australians’ finances
than many people may feel.
CBA’s study of its 1.8 million
home loan borrowers has
found 68 per cent are ahead of
their mortgage repayments, by
an average of seven payments.
It also examined household
savings rates and found that
Australians are now saving
10.8 per cent of their disposable
income, up from just 0.3 per
cent in 2005-06.
A 6.2 per cent rise in con-
sumer spending in the past
year, rising salaries and low
unemployment round out its
review of a solid 2012.
‘‘There is an abundance of
pessimistic news about the
economy, particularly because
the picture in Europe is bleak,
and this can create a perception
that doesn’t reflect some of the
positive things happening in
Australia,’’ CBA chief econom-
ist Michael Blythe says.
‘‘It is tough for many con-
sumers and businesses at the
moment but the patchwork
nature of our economy means
some positive indicators might
be missed.’’
Blythe says the trend of
saving more started in the mid-
2000s but was given ‘‘a huge
kick-along’’ by the global fi-
nancial crisis.
He says most households are
still pessimistic about the out-
look, and this has been a key
reason for the Reserve Bank’s
interest rate cuts this year.
‘‘The Reserve Bank is mak-
ing it clear that they want to see
more activity in the non-
mining part of the economy,
and housing is one of the areas
they are looking to get mov-
ing.’’ It is estimated every $1 of
spending on new housing gen-
erates another $1.31 of spending
elsewhere in the economy.
Assist Finance chief execu-
tive Jason Di Iulio says the
increased focus on debt repay-
ment and savings illustrates
that people are nervous about
the economy and their jobs.
‘‘They are reducing debt at
the expense of luxury spend-
ing,’’ Di Iulio says.
The trend of maintaining
mortgage payments at the
same level even when rates are
cut is a smart move, he says.
‘‘It will reduce debt faster
and take real advantage of the
rate cuts,’’ he says. ‘‘If you
have non-income-producing
debt, you should be paying it off
as fast as possible, which will
benefit you later in life.’’
CBA’s Blythe says building
up a buffer in the mortgage is
attractive for most people.
back
Media Monitors Client Service
Centre 1300 880 082
Copyright Agency Ltd (CAL)
licensed copy
Adelaide Advertiser, Adelaide
17 Dec 2012
Your Money, page 45 - 218.33 cm²
Capital City Daily - circulation 169,889 (MTWTFS-)
ID174578405 PAGE 1 of 1

2. Keeping one
step ahead
Making extra home loan payments is an increasingly key
focus for Australian savers, writes Anthony Keane
MORE than two-thirds of
homeowners are ahead of
their mortgage payments and
Aussies are saving the biggest
slice of their income since the
1980s, research by Australia’s
biggest bank has found.
A new Commonwealth Bank
analysis paints a more positive
picture of Australians’ finances
than many people may feel.
CBA’s study of its 1.8 million
home loan borrowers has
found 68 per cent are ahead of
their mortgage repayments, by
an average of seven payments.
It also examined household
savings rates and found that
Australians are now saving
10.8 per cent of their disposable
income, up from just 0.3 per
cent in 2005-06.
A 6.2 per cent rise in con-
sumer spending in the past
year, rising salaries and low
unemployment round out its
review of a solid 2012.
‘‘There is an abundance of
pessimistic news about the
economy, particularly because
the picture in Europe is bleak,
and this can create a perception
that doesn’t reflect some of the
that doesn’t reflect some of the
positive things happening in
Australia,’’ CBA chief econom-
ist Michael Blythe says.
‘‘It is tough for many con-
sumers and businesses at the
moment but the patchwork
nature of our economy means
some positive indicators might
be missed.’’
Blythe says the trend of
saving more started in the mid-
2000s but was given ‘‘a huge
kick-along’’ by the global fi-
nancial crisis.
He says most households are
still pessimistic about the out-
look, and this has been a key
reason for the Reserve Bank’s
interest rate cuts this year.
‘‘The Reserve Bank is mak-
ing it clear that they want to see
more activity in the non-
mining part of the economy,
and housing is one of the areas
they are looking to get mov-
ing.’’ It is estimated every $1 of
spending on new housing gen-
erates another $1.31 of spending
elsewhere in the economy.
Assist Finance chief execu-
tive Jason Di Iulio says the
increased focus on debt repay-
ment and savings illustrates
ment and savings illustrates
that people are nervous about
the economy and their jobs.
‘‘They are reducing debt at
the expense of luxury spend-
ing,’’ Di Iulio says.
The trend of maintaining
mortgage payments at the
same level even when rates are
cut is a smart move, he says.
‘‘It will reduce debt faster
and take real advantage of the
rate cuts,’’ he says. ‘‘If you
have non-income-producing
debt, you should be paying it off
as fast as possible.’’
CBA’s Blythe says building
up a buffer in the mortgage is
attractive for most people.
If you have non-
income-producing
debt, you should
be paying it off as
fast as possible,
which will benefit
you later in life
Keeping one
step ahead
Making extra home loan payments is an increasingly key
focus for Australian savers, writes Anthony Keane
MORE than two-thirds of
homeowners are ahead of
their mortgage payments and
Aussies are saving the biggest
slice of their income since the
1980s, research by Australia’s
biggest bank has found.
A new Commonwealth Bank
analysis paints a more positive
picture of Australians’ finances
than many people may feel.
CBA’s study of its 1.8 million
home loan borrowers has
found 68 per cent are ahead of
their mortgage repayments, by
an average of seven payments.
It also examined household
savings rates and found that
Australians are now saving
10.8 per cent of their disposable
income, up from just 0.3 per
cent in 2005-06.
A 6.2 per cent rise in con-
sumer spending in the past
year, rising salaries and low
unemployment round out its
review of a solid 2012.
‘‘There is an abundance of
pessimistic news about the
economy, particularly because
the picture in Europe is bleak,
and this can create a perception
that doesn’t reflect some of the
positive things happening in
Australia,’’ CBA chief econom-
ist Michael Blythe says.
‘‘It is tough for many con-
sumers and businesses at the
moment but the patchwork
nature of our economy means
some positive indicators might
be missed.’’
Blythe says the trend of
saving more started in the mid-
2000s but was given ‘‘a huge
kick-along’’ by the global fi-
nancial crisis.
He says most households are
still pessimistic about the out-
look, and this has been a key
reason for the Reserve Bank’s
interest rate cuts this year.
‘‘The Reserve Bank is mak-
ing it clear that they want to see
more activity in the non-
mining part of the economy,
and housing is one of the areas
they are looking to get mov-
ing.’’ It is estimated every $1 of
spending on new housing gen-
erates another $1.31 of spending
elsewhere in the economy.
Assist Finance chief execu-
tive Jason Di Iulio says the
increased focus on debt repay-
ment and savings illustrates
that people are nervous about
the economy and their jobs.
‘‘They are reducing debt at
the expense of luxury spend-
ing,’’ Di Iulio says.
The trend of maintaining
mortgage payments at the
same level even when rates are
cut is a smart move, he says.
‘‘It will reduce debt faster
and take real advantage of the
rate cuts,’’ he says. ‘‘If you
have non-income-producing
debt, you should be paying it off
as fast as possible.’’
CBA’s Blythe says building
up a buffer in the mortgage is
attractive for most people.
back
Media Monitors Client Service
Centre 1300 880 082
Copyright Agency Ltd (CAL)
licensed copy
Herald Sun, Melbourne
17 Dec 2012, by Anthony Keane
Your Money, page 31 - 231.32 cm²
Capital City Daily - circulation 463,543 (MTWTFS-)
ID174575219 PAGE 1 of 2

3. AUSTRALIA’S
HOUSEHOLD
SAVINGS RATES
Source: Commonwealth Bank, Bureau of Statistics
Income saved:
2003-04 0.8%
2004-05 0.8%
2005-06 0.3%
2006-07 4.3%
2007-08 4.3%
2008-09 9.6%
2009-10 9.3%
2010-1110.8%
2011-12 10.8%
mining part of the economy,
AUSTRALIA’S
HOUSEHOLD
SAVINGS RATES
Source: Commonwealth Bank, Bureau of Statistics
Income saved:
2003-04 0.8%
2004-05 0.8%
2005-06 0.3%
2006-07 4.3%
2007-08 4.3%
2008-09 9.6%
2009-10 9.3%
2010-1110.8%
2011-12 10.8%
mining part of the economy,
back
Media Monitors Client Service
Centre 1300 880 082
Copyright Agency Ltd (CAL)
licensed copy
Herald Sun, Melbourne
17 Dec 2012, by Anthony Keane
Your Money, page 31 - 231.32 cm²
Capital City Daily - circulation 463,543 (MTWTFS-)
ID174575219 PAGE 2 of 2

4. Keeping one
step aheadMaking extra home loan payments is an increasingly key
focus for Australian savers, writes Anthony Keane
MORE than two-thirds of
homeowners are ahead of
their mortgage payments and
Aussies are saving the biggest
slice of their income since the
1980s, research by Australia's
biggest bank has found.
A new Commonwealth Bank
analysis paints a more positive
picture of Australians' finances
than many people may feel.
CBA's study of its 1.8 million
home loan borrowers has
found 68 per cent are ahead of
their mortgage repayments, by
an average of seven payments.
It also examined household
savings rates and found that
Australians are now saving
10.8 per cent of their disposable
income, up from just 0.3 per
cent in 2005-06.
A 6.2 per cent rise in con-
sumer spending in the past
year, rising salaries and low
unemployment round out its
review of a solid 2012.
"There is an abundance of
pessimistic news about the
economy, particularly because
the picture in Europe is bleak,
and this can create a perception
that doesn't reflect some of the
positive things happening in
Australia," CBA chief econom-
ist Michael Blythe says.
"It is tough for many con-
sumers and businesses at the
moment but the patchwork
nature of our economy means
some positive indicators might
be missed."
Blythe says the trend of
saving more started in the mid-
AUSTRALIA'S
HOUSEHOLD
SAVINGS RATES
2000s but was given "a huge
kick-along" by the global fi-
nancial crisis.
He says most households are
still pessimistic about the out-
look, and this has been a key
reason for the Reserve Bank's
interest rate cuts this year.
"The Reserve Bank is mak-
ing it clear that they want to see
more activity in the non-
mining part of the economy,
and housing is one of the areas
they are looking to get mov-
ing." It is estimated every $1 of
spending on new housing gen-
erates another $1.31 of spending
elsewhere in the economy.
Assist Finance chief execu-
tive Jason Di Julio says the
increased focus on debt repay-
ment and savings illustrates
that people are nervous about
the economy and their jobs.
"They are reducing debt at
the expense of luxury spend-
ing, Di Julio says.
The trend of maintaining
mortgage payments at the
same level even when rates are
cut is a smart move, he says.
"It will reduce debt faster
and take real advantage of the
rate cuts, he says. "If you
have non-income-producing
debt, you should be paying it off
as fast as possible, which will
benefit you later in life."
CBA's Blythe says building
up a buffer in the mortgage is
attractive for most people.
I ncarne saved: 2007-08 4_3%
2oca-o4 O.5% Z008-09 9.6%
2004-105_04M 2009-10 9.9%
200S- 06 03% 2(110-1110.3%. .
Z006-07 43% 2011-12 10,8%
Drake Urnrnaintiejlth Rank Ow eau of SlatistIrs.
back
Media Monitors Client Service
Centre 1300 880 082
Copyright Agency Ltd (CAL)
licensed copy
Courier Mail, Brisbane
17 Dec 2012, by Anthony Keane
Your Money, page 31 - 264.35 cm²
Capital City Daily - circulation 189,733 (MTWTFS-)
ID174579878 PAGE 1 of 1

5. Keeping one
step ahead
Making extra home loan payments is an increasingly key
focus for Australian savers, writes Anthony Keane
MORE than two-thirds of
homeowners are ahead of
their mortgage payments and
Aussies are saving the biggest
slice of their income since the
1980s, research by Australia’s
biggest bank has found.
A new Commonwealth Bank
analysis paints a more positive
picture of Australians’ finances
than many people may feel.
CBA’s study of its 1.8 million
home loan borrowers has
found 68 per cent are ahead of
their mortgage repayments, by
an average of seven payments.
It also examined household
savings rates and found that
Australians are now saving
10.8 per cent of their disposable
income, up from just 0.3 per
cent in 2005-06.
A 6.2 per cent rise in con-
A 6.2 per cent rise in con-
sumer spending in the past
year, rising salaries and low
unemployment round out its
review of a solid 2012.
‘‘There is an abundance of
pessimistic news about the
economy, particularly because
the picture in Europe is bleak,
and this can create a perception
that doesn’t reflect some of the
positive things happening in
Australia,’’ CBA chief econom-
ist Michael Blythe says.
‘‘It is tough for many con-
sumers and businesses at the
moment but the patchwork
nature of our economy means
some positive indicators might
be missed.’’
Blythe says the trend of
saving more started in the mid-
2000s but was given ‘‘a huge
2000s but was given ‘‘a huge
kick-along’’ by the global fi-
nancial crisis.
He says most households are
still pessimistic about the out-
look, and this has been a key
reason for the Reserve Bank’s
interest rate cuts this year.
‘‘The Reserve Bank is mak-
ing it clear that they want to see
more activity in the non-
mining part of the economy,
and housing is one of the areas
they are looking to get mov-
ing.’’ It is estimated every $1 of
spending on new housing gen-
erates another $1.31 of spending
elsewhere in the economy.
Assist Finance chief execu-
tive Jason Di Iulio says the
increased focus on debt repay-
ment and savings illustrates
that people are nervous about
that people are nervous about
the economy and their jobs.
‘‘They are reducing debt at
the expense of luxury spend-
ing,’’ Di Iulio says.
The trend of maintaining
mortgage payments at the
same level even when rates are
cut is a smart move, he says.
‘‘It will reduce debt faster
and take real advantage of the
rate cuts,’’ he says. ‘‘If you
have non-income-producing
debt, you should be paying it off
as fast as possible, which will
benefit you later in life.’’
CBA’s Blythe says building
up a buffer in the mortgage is
attractive for most people.
AUSTRALIA’S
HOUSEHOLD
SAVINGS RATES
Source: Commonwealth Bank, Bureau of Statistics
Income saved:
2003-04 0.8%
2004-05 0.8%
2005-06 0.3%
2006-07 4.3%
2007-08 4.3%
2008-09 9.6%
2009-10 9.3%
2010-1110.8%
2011-12 10.8%
Keeping one
step ahead
Making extra home loan payments is an increasingly key
focus for Australian savers, writes Anthony Keane
MORE than two-thirds of
homeowners are ahead of
their mortgage payments and
Aussies are saving the biggest
slice of their income since the
1980s, research by Australia’s
biggest bank has found.
A new Commonwealth Bank
analysis paints a more positive
picture of Australians’ finances
than many people may feel.
CBA’s study of its 1.8 million
home loan borrowers has
found 68 per cent are ahead of
their mortgage repayments, by
an average of seven payments.
It also examined household
savings rates and found that
Australians are now saving
10.8 per cent of their disposable
income, up from just 0.3 per
cent in 2005-06.
A 6.2 per cent rise in con-
sumer spending in the past
year, rising salaries and low
unemployment round out its
review of a solid 2012.
‘‘There is an abundance of
pessimistic news about the
economy, particularly because
the picture in Europe is bleak,
and this can create a perception
that doesn’t reflect some of the
positive things happening in
Australia,’’ CBA chief econom-
ist Michael Blythe says.
‘‘It is tough for many con-
sumers and businesses at the
moment but the patchwork
nature of our economy means
some positive indicators might
be missed.’’
Blythe says the trend of
saving more started in the mid-
2000s but was given ‘‘a huge
kick-along’’ by the global fi-
nancial crisis.
He says most households are
still pessimistic about the out-
look, and this has been a key
reason for the Reserve Bank’s
interest rate cuts this year.
‘‘The Reserve Bank is mak-
ing it clear that they want to see
more activity in the non-
mining part of the economy,
and housing is one of the areas
they are looking to get mov-
ing.’’ It is estimated every $1 of
spending on new housing gen-
erates another $1.31 of spending
elsewhere in the economy.
Assist Finance chief execu-
tive Jason Di Iulio says the
increased focus on debt repay-
ment and savings illustrates
that people are nervous about
the economy and their jobs.
‘‘They are reducing debt at
the expense of luxury spend-
ing,’’ Di Iulio says.
The trend of maintaining
mortgage payments at the
same level even when rates are
cut is a smart move, he says.
‘‘It will reduce debt faster
and take real advantage of the
rate cuts,’’ he says. ‘‘If you
have non-income-producing
debt, you should be paying it off
as fast as possible, which will
benefit you later in life.’’
CBA’s Blythe says building
up a buffer in the mortgage is
attractive for most people.
back
Media Monitors Client Service
Centre 1300 880 082
Copyright Agency Ltd (CAL)
licensed copy
Hobart Mercury, Hobart
17 Dec 2012, by Anthony Keane
Your Money, page 19 - 218.89 cm²
Capital City Daily - circulation 40,240 (MTWTFS-)
ID174584790 PAGE 1 of 1

6. Keeping one
step ahead
Making extra home loan payments is an increasingly key
focus for Australian savers, writes Anthony Keane
MORE than two-thirds of
homeowners are ahead of
their mortgage payments and
Aussies are saving the biggest
slice of their income since the
1980s, research by Australia’s
biggest bank has found.
A new Commonwealth Bank
analysis paints a more positive
picture of Australians’ finances
than many people may feel.
CBA’s study of its 1.8 million
home loan borrowers has
found 68 per cent are ahead of
their mortgage repayments, by
an average of seven payments.
It also examined household
savings rates and found that
Australians are now saving
10.8 per cent of their disposable
income, up from just 0.3 per
cent in 2005-06.
A 6.2 per cent rise in con-
sumer spending in the past
year, rising salaries and low
unemployment round out its
review of a solid 2012.
‘‘There is an abundance of
pessimistic news about the
economy, particularly because
the picture in Europe is bleak,
and this can create a perception
that doesn’t reflect some of the
positive things happening in
Australia,’’ CBA chief econom-
ist Michael Blythe says.
‘‘It is tough for many con-
sumers and businesses at the
moment but the patchwork
nature of our economy means
some positive indicators might
be missed.’’
Blythe says the trend of
saving more started in the mid-
2000s but was given ‘‘a huge
kick-along’’ by the global fi-
nancial crisis.
He says most households are
still pessimistic about the out-
look, and this has been a key
reason for the Reserve Bank’s
interest rate cuts this year.
‘‘The Reserve Bank is mak-
ing it clear that they want to see
more activity in the non-
mining part of the economy,
and housing is one of the areas
they are looking to get mov-
ing.’’ It is estimated every $1 of
spending on new housing gen-
erates another $1.31 of spending
elsewhere in the economy.
Assist Finance chief execu-
tive Jason Di Iulio says the
increased focus on debt repay-
ment and savings illustrates
that people are nervous about
the economy and their jobs.
‘‘They are reducing debt at
the expense of luxury spend-
ing,’’ Di Iulio says.
The trend of maintaining
mortgage payments at the
same level even when rates are
cut is a smart move, he says.
‘‘It will reduce debt faster
and take real advantage of the
rate cuts,’’ he says. ‘‘If you
have non-income-producing
debt, you should be paying it off
as fast as possible, which will
benefit you later in life.’’
CBA’s Blythe says building
up a buffer in the mortgage is
attractive for most people.
AUSTRALIA’S
HOUSEHOLD
SAVINGS RATES
Source: Commonwealth Bank, Bureau of Statistics
Income saved:
2003-04 0.8%
2004-05 0.8%
2005-06 0.3%
2006-07 4.3%
2007-08 4.3%
2008-09 9.6%
2009-10 9.3%
2010-1110.8%
2011-12 10.8%
Keeping one
step ahead
Making extra home loan payments is an increasingly key
focus for Australian savers, writes Anthony Keane
MORE than two-thirds of
homeowners are ahead of
their mortgage payments and
Aussies are saving the biggest
slice of their income since the
1980s, research by Australia’s
biggest bank has found.
A new Commonwealth Bank
analysis paints a more positive
picture of Australians’ finances
than many people may feel.
CBA’s study of its 1.8 million
home loan borrowers has
found 68 per cent are ahead of
their mortgage repayments, by
an average of seven payments.
It also examined household
savings rates and found that
Australians are now saving
10.8 per cent of their disposable
income, up from just 0.3 per
cent in 2005-06.
A 6.2 per cent rise in con-
sumer spending in the past
year, rising salaries and low
unemployment round out its
review of a solid 2012.
‘‘There is an abundance of
pessimistic news about the
economy, particularly because
the picture in Europe is bleak,
and this can create a perception
that doesn’t reflect some of the
positive things happening in
Australia,’’ CBA chief econom-
ist Michael Blythe says.
‘‘It is tough for many con-
sumers and businesses at the
moment but the patchwork
nature of our economy means
some positive indicators might
be missed.’’
Blythe says the trend of
saving more started in the mid-
2000s but was given ‘‘a huge
kick-along’’ by the global fi-
nancial crisis.
He says most households are
still pessimistic about the out-
look, and this has been a key
reason for the Reserve Bank’s
interest rate cuts this year.
‘‘The Reserve Bank is mak-
ing it clear that they want to see
more activity in the non-
mining part of the economy,
and housing is one of the areas
they are looking to get mov-
ing.’’ It is estimated every $1 of
spending on new housing gen-
erates another $1.31 of spending
elsewhere in the economy.
Assist Finance chief execu-
tive Jason Di Iulio says the
increased focus on debt repay-
ment and savings illustrates
that people are nervous about
the economy and their jobs.
‘‘They are reducing debt at
the expense of luxury spend-
ing,’’ Di Iulio says.
The trend of maintaining
mortgage payments at the
same level even when rates are
cut is a smart move, he says.
‘‘It will reduce debt faster
and take real advantage of the
rate cuts,’’ he says. ‘‘If you
have non-income-producing
debt, you should be paying it off
as fast as possible, which will
benefit you later in life.’’
CBA’s Blythe says building
up a buffer in the mortgage is
attractive for most people.
AUSTRALIA’S
HOUSEHOLD
SAVINGS RATES
Source: Commonwealth Bank, Bureau of Statistics
Income saved:
2003-04 0.8%
2004-05 0.8%
2005-06 0.3%
2006-07 4.3%
2007-08 4.3%
2008-09 9.6%
2009-10 9.3%
2010-1110.8%
2011-12 10.8%
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licensed copy
Daily Telegraph, Sydney
17 Dec 2012
Your Money, page 29 - 219.97 cm²
Capital City Daily - circulation 350,059 (MTWTFS-)
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