Australia's flourishing housing market has got some people feeling more confident about their finances - especially tradies and those that have paid off their mortgages.
Soaring house prices have propelled confidence to a record high for those that own their homes outright, a survey released on Thursday shows.
The survey, which measures how people feel about their own financial situation, also found confidence among tradies had skyrocketed, probably because of better job prospects thanks to the housing construction boom that's underway.
Financial conditions for homeowners jumped more than 15 per cent in the final three months of 2014, according to the St George/Melbourne Institute quarterly household financial conditions report.
It was the biggest rise in the 20-year history of the survey.
Meanwhile, conditions for tradespeople rose more than 21 per cent.
But the survey showed an increased desire by households to cut back their debt levels, despite the fact that interest rates are enticingly low.
"It is indicating that consumers are still a bit cautious about spending and also about risk taking," St George senior economist Janu Chan said.
"But while it does seem like there is still some that need to pay off debt, there is still some risk taking out there and it's possible that because interest rates are low, households are using this opportunity to reduce their debt levels."
Ms Chan said concerns about the economy, job prospects, proposed federal budget cuts and slow wages growth were weighing on consumer confidence.
But another interest rate cut from the Reserve Bank may not be the best way to fix it.
"There is a danger that it could signal that things aren't so good," Ms Chan said.
"And it's not that low interest rates aren't already doing their job, they are - they're encouraging risk taking in asset classes such as shares and property."