Australian debt to income ratio alarming: RBA

The ratio of household debt to disposable income has reached alarming numbers, according to the Reserve Bank after data showed it at a three year high of 148.8% last December. The numbers are still well below the GFC peak, where the ratio has reached above 150%.

With the return of cheap and affordable loans, analysts are worried as to how much households can take, as debt in line with income is predicted to rise by about 5% per year.

Read more about this on the Sydney Morning Herald website.