CC
That 20% is another frightening statistic - and an indictment of how the education system is turning out people who cannot work out that 100% of your income is the max you can spend
My home loan in 1971 was a nightmare. Reams of paper, only a certain max % of income, only a % of the wife's allowed in case she fell pregnant, and I had to borrow a thou OTQ from a mate to bridge the gap. But, I paid the lot in 5 years. When I then purchased the rental property, still a tough bank approach but easier because I had collateral. But, I wasn't getting the $ without proof of ability to repay.
Then along came the US gurus to teach our bankers that their job was not to jealously guard the bank's money - but to get it out there working. And, the pendulum swung too far to the other extreme. Now they dish it out without qualms, particularly credit cars with their higher rates.
If you look at Harvey Norman and their "interest free" purchase scheme - the rate on anything outstanding at the end of the interest free period is 29.49%. And, like the pokies, they have a fair idea they will get a good percentage of mugs.
I think Aussie is in a lot of strife and we are just starting to see the effects. Ignoring the Aussie dollar comparison with the USD, I feel a recession coming on.