Laden with ‘world-beating’ debt, Australian households are at increased risk as rates rise, expert says

Policies encouraging property investment have fuelled soaring debt ratio to create big potential problem', researcher warns

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Australian households are among the most indebted in the world and the start of interest rate increases by the Reserve Bank will generate a big potential problem" for many people and the wider economy, a University of New South Wales researcher predicts.

Chris Martin, a senior research fellow in UNSW's City Futures Research Centre, said data from the Bank of International Settlements showed total credit to Australian households amounts to about 120% of annual GDP.