Interest rate hike puts more working families under financial pressure:unions

Working families will be put under even more financial pressure as a result of the Reserve Bank of Australia's (RBA) decision to raise interest rates by 0.25 per cent, say unions.

This rise will mean families that are paying off their own home will have to find an extra $52 a month on an average $250,000 mortgage.

Unions are concerned many families could be pushed to breaking point by this interest rate rise, which will not only affect mortgage repayments,but also their credit card and other loan costs.

"We are extremely concerned that this rate rise will mean that hundred of thousands of Australian households will be placed under further 'mortgage stress'," ACTU President Sharan Burrow said.

"Recent reports suggest many families will be unable to cover their loan repayments and could lose their homes if rates rise much further.

"It is not just homeowners that will feel the stress of this rise in interest rates. This rise will add to the pressure that renters are already experiencing from rising rental costs.

"The union movement calls on the banks to consider the plight of working families over their bulging profits.

"Australia's major banks have made record profits in 2007 of over $16 billion.

"The banks have a moral responsibility to treat home owners sensitively in the current climate.

"We encourage banks to help customers having difficulties meeting loan repayments in any way they can", said Ms Burrow.