Cash-strapped Australians have less than $1000 in the bank

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.

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 just $1000 in savings, ANZ’s new Financial Wellbeing report released today (Thu) found.

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The report examined the financial habits of more than 3500 Australians and revealed of those

in desperate need of cash many are relying on forms of credit to live including getting handouts from family members, banks or payday lenders to survive.

Many Australians are relying on credit just to make ends meet.

Financial Counselling Australia’s executive director Fiona Guthrie said climbing electricity prices was pulling on peoples’ 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 rather than provide tools that encourage them to take out credit.”

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Latest Reserve Bank of Australia data shows Australians have racked up more than $52.7 billion on plastic and $33 billion is accruing interest.

Hand typing on laptop with credit card.

The report also found of those struggling many are having 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 discovered of those struggling many 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.”

“Savings 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.”

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Originally published as Cash-strapped Australians have less than $1000 in the bank