Comparison website Finder.com.au has revealed one in ten Australians believe they will live the whole lives in debt.

In a survey of more than a thousand people the site found more than half owed money on credit cards, mortgages, phone contracts or personal loans.

According to the Australian Prudential Regulation Authority credit card and personal loan debt alone amounts to a staggering $109 billion across the Australian economy; while mortgages add another $1.37 trillion to that figure.

19 per cent of survey respondents believed they will be in debt for the next five years. 17 per cent believed they will be in debt for the next 20 years. 12.5 per cent of Gen X believed they will be in debt for life.

However, 63 per cent of baby boomers said they were debt-free.

Ms Hutchinsom, of Finder.com.au, said credit card offers, like balance tyransfer deals, made credit a lot easier to obtain. The constant temptation is too much for some.

“We’re seeing a lot more yo-yo debtors out there who are constantly paying off one card to then rack up a huge amount on another.

“They’re always in this debt cycle which can spiral out of control.”

According to the survey debt levels across Australia (by state) were as follows: ACT – 60 per cent, WA – 58 per cent, VIC – 57 per cent, NSW – 53 per cent, SA – 48 per cent, QLD – 47 per cent.

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