Aussies locked in expenses trouble

MORE than one-third of Australians are experiencing some form of financial hardship, ranging from being unable to pay a bill or rent on time to covering medical expenses, according to NAB research.

The NAB financial hardship survey involved responses from 2050 Australians between August and September.

Researchers found 36 per cent of respondents had experienced hardship in the past three months.

NAB personal banking executive Mark Baylis said the findings were in line with what customers were telling the bank’s assist team.

“Most of our customers are in a good financial position but there are some pockets of concern,” Mr Baylis said.

“Banks have a critical role to provide support to home loan customers finding the increasing interest rates challenging.

“While 70 per cent of home loan customers are ahead on their repayments, I encourage anyone concerned to speak to their bank early.”

Financial hardship was most evident in Western Australia (45 per cent), South Australia and the Northern Territory (38 per cent), and Victoria (37 per cent).

But it dropped in NSW, ACT, Queensland and Tasmania.

It comes after the Reserve Bank of Australia conceded last month in its twice-yearly financial stability review that inflation and rising interest rates would make it tough for some people to repay their debts.

The RBA said there was a small group of borrowers who could fail to meet debt payments due to low savings and high levels of debt.

“Financial stress could be more widespread if economic activity turns out to be much weaker than expected,” the RBA said. “Higher interest rates will increase borrowers’ debt payments. “