Households do it tough
TWO- THIRDS of Australian households are cutting back to cope with financial pressure.
Research by consumer group Choice reveals the most popular ways people are coping with the crunch are by spending less on entertainment and clothing.
Families with school- aged children are most worried about the rising cost of living.
One in five people say they have been living off their credit card to cover the gap until next pay day. This is most common among those with a home loan.
“We are concerned to see these signs of household stress at a time when inflation and mortgage interest rates are historically low,” Choice chief executive Alan Kirkland said.
Inflation has been relatively tame since 2009 and most home- loan customers are paying less than 5 per cent interest.
But 85 per cent of those Choice surveyed said household bills had increased over the past year.