Aussies labour on diet of debt
CASH-DEPRIVED Australians are running short of money for food and everyday expenses and have no savings to fall back on, alarming new statistics show.
One in three people are struggling to get by or are just making ends meet and many admit they have less than $1000 in savings, ANZ’s Financial Wellbeing report, released today, finds.
The report examines the financial habits of more than 3500 Australians and reveals that of those in desperate need of cash, many rely on forms of credit to get by, including getting handouts from family members, banks or payday lenders.
Financial Counselling Australia’s executive director Fiona Guthrie said climbing electricity prices were pulling on people’s purse strings and access to credit remained “far too easy”.
“We are not encouraging a savings culture in Australia, we are encouraging a credit and debt, spending culture,’’ she said.
“We want financial institutions to provide more tools and encourage people to save rath- er than provide tools that encourage them to take out credit.”
Latest Reserve Bank of Australia data shows Australians have racked up more than $52.7 billion on plastic and $33 billion is accruing interest.
The report also finds that of those struggling, many have to rely on loans from family and friends (32 per cent); banks (24 per cent); delayed payment schemes, including AfterPay and ZipPay (24 per cent); and payday lenders (16 per cent).
It also reveals that many struggling Australians conceded they had no savings and often or always ran short of money for food or other regular expenses.
ANZ’s head of financial inclusion Michelle Commandeur warned people to try “not to spend more than you earn” and have “a buffer to fall back on”.
“Saving is a behaviour that’s not always easy and some people don’t have the means or the capacity to save and will struggle with that,’’ she said. “By applying that savings behaviour regularly, even if it’s only a small amount, this will eventually lead you to a way of building your financial wellbeing.” A SURPRISE grant will give a facelift to a retreat for grieving families.
Ronald McDonald Retreat at Palm Cove received the $10,000 donation from the Commonwealth Bank yesterday.
“It came as a beautiful surprise to the charity,” Ronald McDonald House community engagement executive Megan Palmer said.
The money has been allocated to revamp the family escape.
“We rely on donations from locals and businesses to keep the retreat running,” Ms Palmer said. “It was most welcomed.” The retreat has a two-year waiting list with a 100 per cent occupancy rate and is available to the families of seriously ill children.
“A large proportion of these people are going through bereavement,” Ms Palmer said.
“This gives them some time to spend with their families.”
The donation was awarded after a nomination from Smithfield Commonwealth Bank employee Lauren Cooksey.
Ms Cooksey and her husband used Ronald McDonald House in Brisbane when she delivered twin girls at just 24 weeks old.
Her girls Ava and Ella sadly died just six days old.
Ms Cooksey said the retreat was important to help them grieve and reconnect as a family.
“It was really special knowing that the money would benefit families that were in the same situation as ourselves.”