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Financial well-being at five-year high

Australians are enjoying the highest level of financial well-being since 2010, research by ING Direct has found.

ING Direct’s Household Financial Wellbeing Index increased to 111.8 in the fourth quarter of 2014, the highest reading since the index was first used in the first quarter of 2010.

The index rates household comfort levels across six key aspects of personal financial well-being including credit card and mortgage debt, savings, investments, income and ability to pay bills.

“In Q4 2014, comfort with mortgages and credit card debt declined slightly – though from previous highest levels,” a statement from ING Direct said.

“All other indicators increased in Q4 with comfort with bills, savings and investments reaching their highest level since tracking commenced.”

ING Direct executive director of customers John Arnott said Australians are focusing on taking control of their finances and getting better value for money.

“By taking a few simple steps, we can all enjoy more bang for our buck. It’s all about making our money work harder and actively seeking better value rather than having to make cutbacks,” Mr Arnott said.

“For the small amount of effort involved, it’s a strategy that will reap rewards in terms of improved financial well-being,” he said.