Will spending increase lead to increase in personal debt?

Increasingly people are having trouble managing their current financial debt. Retail spending is up, and unfortunately for some people that’s as a result of them spending more than they earn or can afford.

The Australian Bureau of Statistics reported on the 4th of Feburary, 2009 that in seasonally adjusted terms (not including the impact of the government’s December 2008 ‘Stimulus Package’), all retail industries had a sales increase in December 2008, with Food retailing (+1.4%), Department stores (+8.3%), Clothing and soft good retailing (+5.8%), Household good retailing (+9.9%), Other retailing (+2.6%) and Cafes, restaurants and takeaway food services (+1.7%).

With the impending stimulus packages to be released over the next couple of months, and the government encouraging retail spend, some people may find themselves in a worse of position than before with over spending.

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