Here at the Seniors Discount Club, we empathise with the ongoing challenges posed by the rising cost of living in Australia. Many of us find ourselves grappling to make ends meet as everyday expenses become increasingly burdensome.

It's disheartening to witness families forced to make difficult decisions, sacrificing vital needs like healthcare, meals, and insurance simply to stay afloat.

A recent report from the credit bureau Experian reveals a concerning trend. More and more Australians are turning to short-term lending services, opting for Buy Now Pay Later (BNPL) options, and accumulating higher credit card debts to cover basic household expenses.

As the cost of living takes its toll on families, Australians are increasingly showing interest in short-term loans. Photo by Andre Taissin on Unsplash

According to the report, enquiries for BNPL services have shot up by 28%, credit card interest by 31%, and personal loan enquiries by 36% since February 2022.

'The increase over the last couple of years is definitely a concerning trend,' said Charlotte Rankin, Experian Director of Client Advisory Credit Services. 'Consumers are trying to manage their cash flow, spread their payments (and) spread their costs out.'

Amidst the recent cash rate hike by the Reserve Bank of Australia, which has reached its highest level in over a decade, many households face mounting challenges of everyday expenses.

The impact of rising costs is evident as the Salvation Army experiences a significant increase in demand for their financial counselling service, Moneycare. In May alone, they received 15% more calls for financial support than the previous year.

Kristen Hartnett, the National Manager, has shared distressing accounts from their counsellors who have encountered clients resorting to desperate measures such as relying on short-term loans and sacrificing essential necessities like medication, meals, and vital services like home and car insurance.

She strongly advises against turning to high-interest short-term loans to solve financial difficulties, as it only exacerbates the underlying problem.

'You don't handle a difficult situation by going into more debt. The debt can easily spiral out,' warned Hartnett. 'If you're already struggling to make ends meet, reach out.'

In a recent survey conducted by The Salvation Army, it was discovered that 50% of clients couldn't afford healthcare, 52% were skipping meals to save money, and 75% experienced housing stress.

Strategies For Managing And Reducing Household Expenses​

The rising costs have had a noticeable impact, with the Salvation Army witnessing a substantial surge in demand for their financial counselling service. Image from Shutterstock

Heart-wrenching testimonials from survey participants revealed the extent of their struggles, such as families selling personal belongings to buy clothing and losing significant amounts of weight due to insufficient food.

In light of these challenges, it becomes crucial to proactively seek ways to manage and reduce household expenses. By implementing the following strategies, you can avoid the pitfalls of relying on short-term loans and high-interest credit options:

• Review and consolidate utility providers: Compare energy, water, and telecommunications plans to find better deals that suit your needs, resulting in lower monthly bills. Consider bundling services together to receive discounts.
• Create a detailed budget: Track spending, identify patterns, and set priorities to allocate funds efficiently for essential items while cutting down unnecessary costs. Incorporate meal planning and grocery list-making into your routine to avoid impulse buys and minimise food wastage.
• Take advantage of discounts and concession cards: Check eligibility for local and national schemes offering discounts on public transport, prescription medications, utility bills, and other essential services.
• Consider downsizing: Explore the option of selling a large property to move into a smaller house or renting a property with lower monthly payments. This can result in savings on housing costs and reduced maintenance expenses.
• Seek support from friends, family, and neighbours: Collaboration and cooperation within the community can help identify additional ways to save money and reduce the burden of managing household expenses alone.

Key Takeaways

• Australians are gravitating towards short-term lending services but going without essential living items, as the high cost of living spreads the finances of many households thin.
• Enquiries for Buy Now Pay Later (BNPL) services are up 28%, interest in credit cards is up 31%, and enquiries about personal loans are up 36% since February 2022.
• The Salvation Army’s financial counselling service, Moneycare, has experienced growing demand from people needing support due to spiralling debts, with a 15% increase in calls for financial support.
• The Salvation Army revealed 50% of clients could not afford healthcare, 52% were skipping meals to save money, and 75% were experiencing housing stress.

If you or someone you know is facing financial stress, we encourage you to reach out to the Salvation Army for advice and assistance. Remember, seeking help is a brave step towards regaining control of your finances and finding stability.

As part of the Seniors Discount Club community, we want you to know that you are not alone. There are resources and programs available to offer assistance and guidance, whether it's connecting you with emergency relief services, sharing tips on managing expenses and budgets, or simply providing a listening ear.

Have you or someone you know sought assistance or explored resources to manage financial stress during challenging times? How did it impact your financial well-being and overall peace of mind?

 

[Gsr]

Unfortunately with more people being unable to manage financially welfare groups are facing a large increase in the numbers of clients they are helping, with less donations being received. A lot of people who previously donated to charities are being forced to stop donating as the cost of living makes it harder for them just to survive themselves, sometimes they are now in need of assistance.

 

[IAN3005]

Do what did.....call the suppliers and reduce to cost of the service.... in some cases eliminate...." cut your coat according to the cost" . only use what is absolutely necessary to stay alive.
Below is the average spend per month (excluding rent which is $690 per week)

FOOD	$ 397.62
SUNDRY	$ 2.99
MEDICAL	$ 61.90
WATER	$ 130.55
CGU	$ 109.95
VODAFONE	$ 74.00
MATE	$ 79.00
HBF - MC	$ 384.45
ELGAS - MC	$ 126.50
NECTAR - MC	$ 150.00
SUB TOTAL EXPENSES	$ 1,516.96

 

[IAN3005]

Here at the Seniors Discount Club, we empathise with the ongoing challenges posed by the rising cost of living in Australia. Many of us find ourselves grappling to make ends meet as everyday expenses become increasingly burdensome.

It's disheartening to witness families forced to make difficult decisions, sacrificing vital needs like healthcare, meals, and insurance simply to stay afloat.

A recent report from the credit bureau Experian reveals a concerning trend. More and more Australians are turning to short-term lending services, opting for Buy Now Pay Later (BNPL) options, and accumulating higher credit card debts to cover basic household expenses.

View attachment 22066

As the cost of living takes its toll on families, Australians are increasingly showing interest in short-term loans. Photo by Andre Taissin on Unsplash

According to the report, enquiries for BNPL services have shot up by 28%, credit card interest by 31%, and personal loan enquiries by 36% since February 2022.

'The increase over the last couple of years is definitely a concerning trend,' said Charlotte Rankin, Experian Director of Client Advisory Credit Services. 'Consumers are trying to manage their cash flow, spread their payments (and) spread their costs out.'

Amidst the recent cash rate hike by the Reserve Bank of Australia, which has reached its highest level in over a decade, many households face mounting challenges of everyday expenses.

The impact of rising costs is evident as the Salvation Army experiences a significant increase in demand for their financial counselling service, Moneycare. In May alone, they received 15% more calls for financial support than the previous year.

Kristen Hartnett, the National Manager, has shared distressing accounts from their counsellors who have encountered clients resorting to desperate measures such as relying on short-term loans and sacrificing essential necessities like medication, meals, and vital services like home and car insurance.

She strongly advises against turning to high-interest short-term loans to solve financial difficulties, as it only exacerbates the underlying problem.

'You don't handle a difficult situation by going into more debt. The debt can easily spiral out,' warned Hartnett. 'If you're already struggling to make ends meet, reach out.'

In a recent survey conducted by The Salvation Army, it was discovered that 50% of clients couldn't afford healthcare, 52% were skipping meals to save money, and 75% experienced housing stress.

Strategies For Managing And Reducing Household Expenses​

View attachment 22067

The rising costs have had a noticeable impact, with the Salvation Army witnessing a substantial surge in demand for their financial counselling service. Image from Shutterstock

Heart-wrenching testimonials from survey participants revealed the extent of their struggles, such as families selling personal belongings to buy clothing and losing significant amounts of weight due to insufficient food.

In light of these challenges, it becomes crucial to proactively seek ways to manage and reduce household expenses. By implementing the following strategies, you can avoid the pitfalls of relying on short-term loans and high-interest credit options:

• Review and consolidate utility providers: Compare energy, water, and telecommunications plans to find better deals that suit your needs, resulting in lower monthly bills. Consider bundling services together to receive discounts.
• Create a detailed budget: Track spending, identify patterns, and set priorities to allocate funds efficiently for essential items while cutting down unnecessary costs. Incorporate meal planning and grocery list-making into your routine to avoid impulse buys and minimise food wastage.
• Take advantage of discounts and concession cards: Check eligibility for local and national schemes offering discounts on public transport, prescription medications, utility bills, and other essential services.
• Consider downsizing: Explore the option of selling a large property to move into a smaller house or renting a property with lower monthly payments. This can result in savings on housing costs and reduced maintenance expenses.
• Seek support from friends, family, and neighbours: Collaboration and cooperation within the community can help identify additional ways to save money and reduce the burden of managing household expenses alone.

Key Takeaways

• Australians are gravitating towards short-term lending services but going without essential living items, as the high cost of living spreads the finances of many households thin.
• Enquiries for Buy Now Pay Later (BNPL) services are up 28%, interest in credit cards is up 31%, and enquiries about personal loans are up 36% since February 2022.
• The Salvation Army’s financial counselling service, Moneycare, has experienced growing demand from people needing support due to spiralling debts, with a 15% increase in calls for financial support.
• The Salvation Army revealed 50% of clients could not afford healthcare, 52% were skipping meals to save money, and 75% were experiencing housing stress.

If you or someone you know is facing financial stress, we encourage you to reach out to the Salvation Army for advice and assistance. Remember, seeking help is a brave step towards regaining control of your finances and finding stability.

As part of the Seniors Discount Club community, we want you to know that you are not alone. There are resources and programs available to offer assistance and guidance, whether it's connecting you with emergency relief services, sharing tips on managing expenses and budgets, or simply providing a listening ear.

Have you or someone you know sought assistance or explored resources to manage financial stress during challenging times? How did it impact your financial well-being and overall peace of mind?

As it is I eat once a day and then keep the cost below the $2.00 mark to help out with the cost of living.