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Aussies Struggling Between Pay Cheques


24 April 2014 at 10:49 am
Staff Reporter
Almost two thirds of Australian households (63 per cent) say they have been strapped for cash between pay days at some stage and one in three have used a credit card to tide them over, according to the latest findings of a national Household Financial Wellbeing Index.

Staff Reporter | 24 April 2014 at 10:49 am


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Aussies Struggling Between Pay Cheques
24 April 2014 at 10:49 am

Almost two thirds of Australian households (63 per cent) say they have been strapped for cash between pay days at some stage and one in three have used a credit card to tide them over, according to the latest findings of a national Household Financial Wellbeing Index.

As well almost half (46 per cent) say it would take at least an extra $300 per week to be comfortable with take-home pay.

The authors say the findings confirm that many Australians are struggling to make ends meet and build personal savings.

The quarterly ING DIRECT Financial Wellbeing Index rates household comfort levels across six key aspects of personal financial wellbeing including credit card and mortgage debt, savings, investments, household income and ability to pay bills.

Of those households that have struggled between pay cheques, 57 per cent make ends meet by staying at home rather than going out;  half (49 per cent) cook cheaper meals. One in three (35 per cent) dip into savings and 33 per cent rely on their credit card to carry over until payday – 25 per cent of these people say they are already ‘very uncomfortable’ with their card debt.

Only 10 per cent of households that have experienced a cash shortage between pay cheques have borrowed money from family members to get by.

Offered the prospect of a more achievable 5 per cent pay rise, only 11 per cent of households would spend the extra cash. Over eight out of 10 (82 per cent ) would save the money in some way by:

• 36 per cent building a buffer of savings;

• 24 per cent paying down credit card debts or other bills;

• 18 per cent putting the money towards mortgage repayments;

• 5 per cent make an extra superannuation payment.

“Although many Australians are experiencing a shortfall of cash between pay cheques, these households are likely to be including savings and debt repayments into their monthly commitments,” Executive Director of Customer, ING DIRECT, John Arnott said.

“With this in mind, Australians continue to take a sensible approach to household financial management.”

AROUND THE NATION

Proportion of households who:

Nat

NSW

Vic/Tas

Qld

SA

WA

Have experienced a cash shortfall between pay days at some stage.

63%

65%

64%

65%

60%

60%

Need at least $300 extra per week to be comfortable about income.

46%

51%

42%

48%

37%

39%

Would save rather than spend a 5% pay rise.

82%

79%

81%

85%

87%

86%


Staff Reporter  |  Journalist  |  @ProBonoNews


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