Middle class Australians struggling with debt

Australia's middle classes are facing greater debt constraints than in previous years, it has been reported.

Sydney Morning Herald claims that rising costs on credit cards and mortgages are placing new pressures on middle class citizens.

Financial counsellor Tony Devlin suggests that the trend stems initially from mortgages but has since spread to credit cards.

He explains that homeowners may have used credit cards as a short-term way to meet mortgage repayments.

But now the money they owe on credit cards is adding to their overall debt, worsening their economic situations still further.

Around half of Mr Devlin's clients now have mortgages, up from one in ten in previous years, he notes.

For many, it may seem tempting to try and gamble their way out of debt; however, doing so using credit cards might not be a wise option.

One suggestion to prevent gamblers from entering debt is the recent proposal to prevent them from using their credit cards online.

Registered gaming clubs movement Clubs Australia recently argued that eliminating the plastic cards from gambling could help players take part more responsibly.