Well-off Aussies 'struck by downturn', HSBC reports

A significant number of well-off Australians have seen their personal finances take a hit, HSBC reveals.

Research by the bank - which includes the HSBC Credit Card in its range of products - reveals that around half of 30 to 55-year-olds in the top ten percentile of the population in terms of income or liquid assets have seen their net worth fall over the last six months.

Some 11 per cent of respondents believe their net worth has fallen between 25 and 50 per cent, while two per cent have suffered a loss of more than 50 per cent.

Graham Heunis, head of personal financial services for HSBC Bank in Australia, claims that the study serves as proof that "the net worth of affluent Australians has been depleted by the global financial crisis and, as a result, they have become more cautious in their spending in the last six months".

Those affected by the downturn, however, may find that their ability to keep up with financial commitments comes under strain, although a credit card offering an interest free period on purchases could prove to be of assistance.

Meanwhile, professor Mark Wooden, economist for Melbourne's Institute of Applied Economic and Social Research, recently told the Australian newspaper that relatively few households were struggling with high levels of debt before the emergence of the financial crisis.

Written by Joe Letts