Treasurer says reduce debt

Peter Costello, the Australian Treasurer, has asked parents to lay-off the credit card this christmas and give their children love and attention instead.

His comments come as the Australian current account deficit grew to $13.7 billion, or 6.5% of our economy, taking total debt to $400 billion.

If spending is not reined in then Australia could be in for higher interest rates and even a recession. House prices are likely to retreat from current highs.