Australians ‘worried’ about their financial situation: Mortgage Choice Survey

May 20, 2015
Nicole Meyer

New data has found the vast majority of Australians are “worried” about their financial situation.

According to Mortgage Choice’s 2015 Money Survey, 53.6% of Australians indicated that they were either “very worried” or “concerned” about their finances – slightly up on this time last year.

Local Mortgage Choice, Nathan Bottrell said while the vast majority of respondents are concerned by their financial situation, the survey shows most Australians are actually saving more money and paying off debt faster than ever before.

“When asked how much debt (excluding a mortgage) they had, 56.0% of Australians said they had less than $10,000 in debt, with 43.2% of those saying their debt was actually less than $5,000,” he said.

“Furthermore, one in every three Australians indicated that they had more than $20,000 in savings – up from previous year. In 2014, less than 30% of respondents indicated that they had more than $20,000 in savings, with 49.9% stating that they had less than $10,000 stored away in their bank account.

“Finally, the majority of Australians said they like to keep a close eye on their day to day spending habits, with 60.8% admitting they check their bank accounts at least once a week – up from 55.9% in 2014.

“All of this data would suggest Australians are becoming increasingly savvy when it comes to managing their finances and controlling their spending.”

Of course, while the survey results would suggest Australians continue to hone and improve their money management skills, Mr Bottrell said the fact that so many Australians are worried about their financial situation cannot be underestimated.

“For those who do worry about their financial situation on a regular basis, there are a few easy tricks they can implement to better manage their finances, save more money and pay down their debts faster,” he said.

Mr Bottrell identifies the top three tips Australians can implement to better manage their finances:

  • Consolidate: If you have quite a bit of credit card debt or a few personal loans with high interest rates, you might consider consolidating this debt into your home loan. Consolidating your existing debt into your home loan can help you to reduce the interest you pay on each of your debts – as the interest rate on a home loan is generally a lot lower than the interest charged on credit cards.
  • Transfer balances: If you have a sound credit history but a few credit cards with high interest rates, you may be able to negotiate with your financial institution to have your credit card debt transferred onto another card with a lower interest rate. Sometimes you can even get a low introductory interest rate and use this period to make extra payments on your card.
  • Use a high interest savings account: By investing your money into a high interest savings account you could be regularly earning interest on your savings. These accounts often cannot be accessed via ATM or EFTPOS, which should also help to reduce any impulse spending.

If you would like learn more about your home loan or financial advice options, call us now or 08 9472 0211.

 

Table 1: Financial concerns

How worried are you about your current financial situation?

National

NSW

VIC

QLD

SA

WA

Very worried

11.5%

15.0%

9.0%

9.3%

10.5%

14.5%

Slightly concerned

42.1%

45.0%

42.0%

36.6%

44.5%

42.5%

Neutral

27.1%

24.5%

28.0%

32.9%

23.5%

25.5%

Not concerned

19.3%

15.5%

21.0%

21.2%

21.5%

17.5%

 

Table 2: Debt levels

How much debt do you have (mortgage excluded)?

National

NSW

VIC

QLD

SA

WA

Less than $5,000

43.2%

37.5%

55.0%

40.3%

40.5%

43.0%

$5,001 - $10,000

12.9%

11.5%

9.5%

13.4%

18.5%

11.0%

$10,001- $20,000

11.6%

9.0%

11.5%

14.4%

11.0%

12.5%

$20,001 - $30,000

8.2%

12.0%

5.0%

6.5%

6.5%

9.5%

$30,001 - $40,000

3.5%

4.5%

2.0%

2.3%

4.0%

5.0%

$40,001 - $50,000

3.2%

6.0%

1.5%

3.2%

1.5%

4.0%

More than $50,000

17.4%

19.5%

15.5%

19.9%

18.0%

15.0%

 

Table 3: Savings levels

How much money do you have in savings?

National

NSW

VIC

QLD

SA

WA

$1,000 or less

18.8%

36.5%

14.5%

16.2%

14.5%

22.0%

$1,001 - $5,000

18.2%

17.5%

15.5%

16.7%

19.5%

22.5%

$5,001 - $10,000

13.1%

10.5%

11.0%

12.5%

16.5%

14.5%

$10,001 - $15,000

8.7%

11.5%

8.0%

6.5%

10.5%

7.0%

$15,001 - $20,000

7.6%

6.5%

7.5%

8.8%

9.5%

5.0%

$20,001 - $30,000

5.9%

5.0%

8.0%

7.9%

5.5%

3.5%

$30,001 - $50,000

8.3%

9.0%

9.5%

7.9%

8.0%

7.5%

Over $50,000

19.4%

13.5%

26.0%

23.6%

16.0%

18.0%

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