News.com.au reports today that bank interest rates are still rising.
"AUSTRALIAN households are about to be swept up in the global credit crunch, with the major banks raising interest rates across the board in an effort to protect their profit margins.
Lending rates for almost all loans - particularly fixed home loans, investment loans and some credit cards - have risen in recent weeks by more than the Reserve Bank's 25 basis-point increase in November.
Most at risk are credit card holders, who owe the banks a record $31 billion and face interest rates of up to 19.9 per cent as the Christmas bills fall due in coming months.-----------------------------------
CommSec equities economist Martin Arnold said despite record employment levels, some families would have been forced to borrow to survive over Christmas."
News.com.au article today:
Cutting the credit card in half may be the only way many NSW North Coast residents will survive increased debt this year.
The high interest rates on these cards are an added burden for low-income and pensioner families, who frequently use such credit lines as an emergency fallback measure in the face of an ever increasing cost of living.
Scarcity due to drought and high transport costs now see everything in the butcher's window
(except sausages, mince and offal) at prices in the $13-$25 a kg range. Bread and dairy prices have also risen along with many other staples.
Bulk-billing GPs and other non-public hospital medical services that do not insist on upfront payment are often hard to find, and the cost of transport to North Coast medical specialists is becoming prohibitive.
Service fees and charges on basic utilities have been creeping up in recent years, so that these costs can sometimes exceed the total cost of actual electricity, water or telephone use for single or two person households.
That significant bloc of North Coast residents living in comparative poverty is likely to find that 2008 will be a rather grim year.
Increased credit card debt due to high interest rates will only make it harder to cope.
The phrase "Advance Australia Fair" sounds rather hollow right now.
