64% of Australians are anxious about the rising costs of living

With the cost of living on the rise, new Mozo research has found that many Australians are stressed and anxious about their financial future–64% to be exact.

Financial stress isn’t new, but when wages can’t keep up with inflation, it makes living a bit more challenging and could lead to increased debt.

“With inflation spiralling out of control and a series of interest rate hikes on the horizon, it’s clear many households are starting to feel financial stress,” says Mozo spokesperson, Tom Godfrey.

Our research found that 11% of Australians are about $100 in debt after paying their regular monthly expenses. And more than half (54%) of Aussies are concerned about their level of debt, with 15% saying that they will struggle to repay it in the future.

But why?

Well for starters, the price of everything is going up from groceries to petrol and even mortgage repayments.

Earlier this year, the Australian Bureau of Statistics (ABS) released the consumer price index report, which shows that inflation went up by 5.1%--well above the RBA’s 2-3% target.

And now that the era of low home loan interest rates is over, many Australians are seeing rates go up along with their repayments. Anywhere you look, you can see that prices are heading upward.

Saving money on everyday items and expenses

That’s why many Aussies are trying to find ways to rejig their budgets and lower expenses.

“Cutting back on discretionary spending can help you get your finances back on track, but if costs keep rising, it’s important to try to identify how to reduce some of the bigger costs you face such as your mortgage,” says Godfrey.

Many Australians are already cutting back on their spending. Some of the top things people are trying to reduce are eating out (47%), takeaway food (45%), entertainment (38%), clothing (28%) and groceries (20%).

If financial stress is hitting your home check out our nifty calculators to help you rework your finances. We have budget calculators and home loan refinancing calculators. Alternatively, you can start using our repayment calculator below to see how you can save money.