MORE FAMILIES LIVING ON CREDIT, SURVEY FINDS

MORE FAMILIES LIVING ON CREDIT, SURVEY FINDS

A GROWING number of Australian families are turning to credit cards to cover increasing costs of living.

With rising unemployment and soaring petrol and utility prices, 41 per cent of households with children now rely on credit cards to cover daily living expenses up 2 per cent since late last year according to the survey by finance consultancy firm Dun & Bradstreet.

The survey found the majority of Australians still prefer using cash savings to make major purchases, but still flash their plastic increasingly to cover everyday expenses including groceries.

An estimated 15 million credit cards are in circulation across the country with a further 36 million debit cards used on a regular basis.

The average Australian credit card balance is around $3300, with credit and charge card users collectively owing nearly $50 billion from outstanding transactions according to the Reserve Bank of Australia.

Although interest rates have remained stable in recent months, a third of families say they struggle to manage existing debt levels, with 25 per cent admitting they would forego a mortgage repayment if they ran short of cash.

Not surprisingly, lower income households are feeling the most pain.

Nearly half (46 per cent) of all low-income households expect difficulty in managing existing debt, an increase of eight percentage points since the end of last year and 11 points above the national average.

A third of all lower income households expect the situation to worsen in coming months.

Electricity bills and pay-TV accounts were nominated as the first bills most likely to go unpaid by families under economic hardship.

Despite the increasing financial strain, more than a quarter of all families say they are considering taking on another credit card or seeking an increase in existing credit limits to help cover rising household costs. 

Help us deliver quality journalism to you.
As a free and independent news site providing daily updates
during a period of unprecedented challenges for businesses everywhere
we call on your support

Crypto staking: a new way to earn passive income
Partner Content
You may be familiar with traditional ways of earning passive income such as trading sto...
Etoro
Advertisement

Related Stories

Hospitality mogul Glenn Piper to transform Hook Island into "world class hospitality experience"

Hospitality mogul Glenn Piper to transform Hook Island into "world class hospitality experience"

Sydney hotelier Glenn Piper has snatched up his third hospital...

Super fund HESTA "unconvinced", to vote against AGL demerger

Super fund HESTA "unconvinced", to vote against AGL demerger

Superannuation fund HESTA is backing the position of Australian tec...

Airtasker completes Oneflare acquisition after ACCC withdraws concerns

Airtasker completes Oneflare acquisition after ACCC withdraws concerns

Leading online services marketplace Airtasker (ASX: ART) has comple...

Superloop set to buy tech services firm Acurus for $15m

Superloop set to buy tech services firm Acurus for $15m

After completing $140 million worth of divestments from Singapore a...