Recent research has revealed alarming financial challenges among Australians, with nearly one in five having less than $100 in their savings. A study by Compare the Market found that 18.7% of respondents contributed to this grim statistic, citing high grocery costs, soaring insurance premiums, and rising power bills as primary factors draining their savings. Additionally, 79.2% of Australians reported that the cost of living has hindered their ability to save over the last year.
Chris Ford from Compare the Market commented on these findings, noting that although inflation is reportedly stabilising, many individuals remain financially strained. He warned that prices may not drop even as inflation slows, making it challenging to build savings while living paycheck to paycheck.
Other insights from the survey revealed that 10.3% of participants were debt-free but had no savings, while 15.8% were dealing with growing debt. Moreover, 26.5% noticed a decline in their savings, highlighting the precarious situation many find themselves in.
Ford advises against relying on credit cards or buy now, pay later schemes to manage expenses, as this can lead to long-term debt burdens. Instead, he encourages open discussions with service providers about possible financial support, urging Australians to actively seek competitive deals and discounts to bolster their financial resilience.