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Reserve bank warns on household debt risks

The Reserve Bank of Australia warned that the household debt of households with fixed incomes would increase between 2 to 4 per cent in the next two years and it warned that household credit activity, especially for debt repayment, would be reduced.

The statement said: "In particular, households will increasingly rely on debt service for their financial support needs over the medium-term.

"This will put significant pressure on household credit, especially in times of economic instability."

It predicted that credit growth would moderate over the next two years but there was little scope for significant growth by 2016.

"The Government's recent announcement to provide $30bn of additional finance for a second financial package â combined with recent evidence about the strength of Australian households' borrowing capacity - suggests a potential increase in household credit to around 9 per cent by 2016."

There were also concerns that higher education and the health care sector would benefit, but those was not reflected in the statement.

Topics: consumer-finance, business-economics-and-finance, budget, sa

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Grandson fights fatal crash charges after car hits him during celebration

Jasper County Sheriff's Office Jasper County Sheriff's Office Photo: Courtesy, Jasper County Jail/Facebook Image 1 of / 1 Caption Close Jasper County Sheriff's Office releases disturbing 911 calls of family, friends who died after accident 1 / 1 Back to Gallery

TOPEKA â Family members and friends of five people killed in a fatal crash on the 400 block of East Sixth Street this weekend say investigators still haven't cleared the man responsible for the crash, the last person to talk to a 911 operator for help.

The family, including their son and daughter, have contacted KSTP, calling the 911 operator the only person who's been charged in the death of one of their family members. Their family also filed a class action lawsuit against the company that operates the accident reconstruction centers the county provided the driver.

An interview with the driver, identified by police as 34-year-old Richard McPherson, a former customer service representative at A&W, was taped by an investigator, but it doesn't appear to be related to the case.

A judge ordered that police release the transcripts of the 911 calls, but the family is still waiting.

"We didn't want to reveal our son's voice or our daughter's voice," said Linda McElrath of St. Cloud.

Her husband, John McElrath, was driving with several other vehicles when they struck a utility pole while he was taking photographs.

"He says he knew the lights were going, he didn't know what was going on," said her son, Thomas McElrath.

Thomas McElrath said police have released little information about McPherson's behavior in the hours before the crash.

"We're trying to figure out if he was just sitting behind there or if he had something in his eye," said Thomas McElrath. "What did he feel? I don't want this to go too far off base; we just want him to be held accountable for what happened."

A family member called 911 to say a vehicle had hit his wife, John McPherson, 34, and his 8-year-old daughter, Karina Schumaker, according to police. A dispatcher says, "I am not available at this time." A woman on the other end of the line told police: "I am the operator here and I just don't know anything. They haven't provided me with the right information. I just don't know if she's OK or not."

"We're not sure whether the (family) member had any mental health issues, but the 911 call that we have is from him saying that he had

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