Hidden crisis affecting Australians at disproportionate rates
There’s a crisis unfolding in Australia that’s creeping into homes, workplaces and everyday life – but few are willing to talk about it.
Across Australia, people are quietly reaching breaking point. Families are cutting back on groceries, young workers are juggling multiple jobs, and households are slipping into ever-growing debt.
As the cost-of-living pressures intensify, the impact is being felt well beyond the wallet.
Rising rents, insecure work, and mounting debts are driving a mental health crisis that experts warn can no longer be ignored.
A recent Beyond Blue survey of more than 5000 Australians over the age of 18 found financial pressure to be the leading cause of distress for 46 per cent of respondents. Among those aged 25 to 34, it was even more prevalent with nearly 2 in 3 young people revealing their financial situation was harming their mental health.
And the strain is showing in the numbers.
During the 2024–25 financial year, more than 168,000 Australians contacted the National Debt Helpline, marking the service’s busiest period since 2018–19.
Peter Gartlan, co-CEO of Financial Counselling Australia, said housing stress dominates calls for help, with many also struggling under the weight of utility and body corporate fees and credit card debt.
The majority of people contacting the helpline are women (60 per cent), many of whom are between 30 and 40 years old.
“People feel embarrassed about their money problems, but picking up the phone is a huge thing,” Mr Gartlan told news.com.au.
“It’s really great that they’re able to do that and it’s non-judgemental, of course.”
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While the courage to seek help is growing, so too are the traps that keep people stuck. Buy Now, Pay Later (BNPL) schemes are leaving those already under pressure caught in a vicious cycle.
“It never ceases to amaze me how companies can make money off the poorest people in the country,” Mr Gartlan said.
“The damage is there for us to see.”
Earlier this year, the Albanese government announced that BNPL products – including Afterpay, Zip and Humm, as well as low-cost credit contracts for significant purchases – would be regulated in the same way as credit cards.
BNPL providers, under the Australian Securities and Investments Commission (ASIC), may be required to complete mandatory checks and inquiries about a consumer’s financial situation, including in relation to their income and expenditure, to prevent financial strain.
For financial counsellors, the link between money and mental health is undeniable.
A national survey found 80 per cent of financial counsellors were seeing clients with clear mental health impacts such as stress, anxiety or depression linked to debt.
“It’s not surprising. People don’t go into debt because they want to. Something happens – a disaster, illness, accidents or scams. The stress of that can be enormous,” Mr Gartlan said.
He described ordinary Australians trying to survive under mounting pressure as “heroes”.
“There’s no doubt that financial stress can have a huge impact on mental health,” he said.
“Constant debts and the stress of making ends meet is difficult, but they are heroes.”
Despite Australia having what he calls a “pretty good” consumer protection framework, Mr Gartlan argued there are still serious gaps.
“The tax office needs to get better at supporting Australians that want to pay their debts but can’t, Centrepay needs to be reformed, and scams legislation is so vital but doesn’t go far enough,” he said.
Beyond Blue CEO Georgie Harman AO said financial strain is leaving many Australians questioning whether they’ll ever own a home, their job security, or if they’ll have the same opportunities as previous generations.
“Financial stress and mental health are closely connected. Financial stress can have a serious impact on your mental health. And when your mental health declines, it becomes even harder to manage your money and make decisions,” Ms Harman told news.com.au.
That vicious cycle, she said, is made worse by stigma. For many the silence around money problems leads to hopelessness and prevents them from seeking help.
“It can feel like a downward spiral and that silence can lead to hopelessness, where people feel stuck and unable to see a way forward,” Ms Harman added.
“When people are struggling to afford everyday essentials like rent, groceries or bills, it’s not just stressful, it can feel overwhelming and have a pervasive impact on many different areas of your life.
Though the impacts are widespread, young people are particularly vulnerable.
“For young people, they can be disproportionately impacted due to more insecure employment conditions, lack of emergency savings, fewer assets and greater vulnerability to debt traps. It’s also underpinned by concerns about what the future looks like,” she said.
For those living it, financial stress is a lot more than just numbers on a page.
It’s the exhaustion of working multiple jobs and still falling short, the shame of opening up an overdue notice, or the dread of having the rent due before the next pay slip comes through.
For many though, the hardest part isn’t just keeping up with the bills – it’s finding the courage to admit they’re struggling. Speaking about money can feel shameful, but those on the frontline say that a single step of reaching out can make all the difference.
For free financial counselling to help manage debt and get back on track, you can contact the National Debt Helpline on 1800 007 007.
Beyond Blue Support Service: 24/7 mental health support via phone, webchat, or email
1300 22 4636 • beyondblue.org.au
