Australian Financial Review with the headline,
One in five borrowers is ‘screwed’ (gated).
Some of the 'highlights' of the report, low lights really, things are not looking promising:
- The Reserve Bank of Australia likes to spin that “most” borrowers are fine, but between 15 and 20 per cent are in trouble.
- 13 %of borrowers cannot afford to make their debt repayments after living costs, up from a mere 3 per cent last year
- while the RBA and media are crowing about how Aussie households and businesses can comfortably wear higher interest rates, which is true, the tails of this distribution are still getting crushed.
- sub-prime home loans originated by non-banks, the news is worse with the 30 days arrears rate leaping from 2.5 per cent to almost 4 per cent.
- The RBA also expressly warns about the coming high-risk debt default cycle and pain for non-bank lenders that have financed dodgier businesses and households,
