This is the first time since November 2006 when households believe that their Credit Card Debt is a Greater Problem than their Mortgage Debt.
According to the survey conducted, Victorians are Australia’s best savers.
It also showed the proportion of respondents nominating holiday or travel as their motivation for saving was 55.8 per cent, up from 55.0 per cent in March.
The Melbourne Institute household financial conditions index rose 17.2 per cent to 33.7 in June, up from 28.8 in March.
Credit card debt overtook mortgage debt as the main form for households, up almost 3 per cent, to 36.6 per cent.
The proportion of Australians saving grew marginally.
“About 48.8 per cent of Australian households saved part of their income in June 2010, up from 46.2 per cent in March,” the report said.
The June survey revealed three quarters of Australian households fully own their own home or have a mortgage, falling from 79.8 per cent in March and 78.8 per cent a year ago.
Just over 30.5 per cent of households said they would put new savings into deposit-taking institutions, while bank deposits remained the most popular form of savings.
More than 40 per cent of households said they were debt free, while a third said they held mortgage debt, down almost four per cent since last quarter.
Almost 60% of households interviewed indicated that they use only 10% of after tax income to apply towards debts. Clearly debt balances continue to grow.
Queenslanders were more likely to run into debt than those in other states, while NSW and Victorian residents were more likely to save than their counterparts in other states.
The outcomes kept wages growth just inside the RBA expected 4.5%.