It has been reported that credit card debt has become the most common type of debt across Australia, rather than the mortgage debt. The news has been confirmed by the Melbourne Institute and it was pointed that this has happened for the first time since November 2006.

As per the latest report, 36.6% Australians had credit card debt as compared to 33.9% people, who had mortgage debt.

Experts feel that the latest report is a serious cause of concern. It is pointed that intersect rates on credit cards are very high as compared to other types of debt.  

The report also confirmed that the potion of household finances is in much better shape as against the first quarter of this year. Nearly 49% of the households are saving money compared to only 46%, who were saving money in the first quarter of the year.    

Experts feel that the global financial crisis ensured that people are inclined to increase their savings as they feared that they may be suffering from problems, in case they lose their jobs. This has also lead to people not spending too much money, as they are worried about their future.  

However, the conditions have still not recovered to the levels, which were prevailing before the financial crisis. The report also revealed that the financial conditions index increased by almost five points to reach 33.7 in the month of June.