Many Australian households are feeling the pinch from higher cost of living and other financial pressures. According to a survey by Choice consumer group, increased cost of living has caused up to 65 percent of Australian households to cut back their spending in order to keep up with rising cost. Some of the biggest financial pressure has occurred due to an increase in cost of petrol, electricity, food and other groceries. These sorts of financial pressures hit renters, low-income households, unemployed and families with school-aged children the most.
Worryingly, the survey showed that one in five Australians had to live off of credit cards to make it to their next payday within the last year. A lack of financial preparedness has many Australian households struggling with financial emergencies such as loss of income. Single parents are among those with the highest risk of being caught unprepared. There is a marked fall of confidence in households regarding a financial emergency, for example, loss of income. The lack in confidence is likely from weak income growth. Financial pressure from weak income growth and increased concerns about the job market can bring tremendous stress to already cash strapped families.
Troubling Financial Pressure
All of these financial pressures mean that renters are experiencing more stress than usual when it comes to entering the property market. Rents are rising in many states and in the capitals in particular. Faced with an unsure job market and increases in cost of living, renters are left with little assurance when considering taking on a mortgage.
The consumer confidence surveys that show doom and gloom in the market should not be focused on too much though. In a longer term view, the financial pressures from higher cost and lower wage growth are all part of a long term trend that is actually pretty bright. The best thing for families that are feeling financial pressure now is too take stock in where they are financially.
Knowing what your options are when it comes to getting capital when it is needed. Focusing on financial stability is the key to getting through tough times. Reaching for the credit card might seem easy at the moment but it can lead to troubles down the line. For families and individual looking to make ends meet it might be better to look at other financial solutions that are available from other lenders.
Non bank lenders like Australian Lending Centre can help families and individuals struggling with finances to find the most suitable financial solution. Aside from excellent customer service, our friendly team of experts have helped many Australians by guiding them through tough times and always being there to help in future unforeseen circumstances. Speak to one of our counsellors today on 1300 138 188 or enquire online for a free consultation.