Time to read : 4 Minutes
Bill Stress May 2023
Three out of four Australians have reported high levels of stress over bills, according to research from Compare Club. Mortgages, utilities and health insurance top the list of expenses that cause the highest levels of anxiety.
More than a quarter of Australians are “very stressed” about household bills
A third of us spend more than half of our income on bills.
54% of Australians have paid a bill late due to a lack of finances.
41% of us expect to feel more stressed about our bills in the next three months.
Bill stress is affecting every Australian household
Compare Club’s Bill Stress Index surveyed 1,000 Australians to try and understand just how cost of living increases are impacting our mental health.
The survey was launched after the team noticed an increase in people looking to cut the cost of their insurances, citing rising mortgage costs. You can download the report here.
“These are people we’d ordinarily expect to be savvy value-for-money hunters but are now just looking to save. It’s why we wanted to understand just how widespread the cost of living crisis is.”
Compare Club co-CEO Lance Goodman
While the report suggests most households are just about coping, 20% of respondents said they’re struggling to make ends meet.
The household bills that cause anxiety for parents, older Aussies and low earners
The Bill Stress Index report shows exactly which bills are causing the most stress for different age groups and income levels.
Over 70% of mortgage holders said their home loan is their biggest source of stress.
Utility bills such as energy, broadband, and water came in second place for anxiety. Over 55s are most stressed over these costs.
Parents are more stressed about the cost of health insurance and car loans than other demographics.
One in five low earners and under 25s are stressed about rent. For high earners, credit cards are their second highest stress.
Yes, but… Fewer than 30% of households have switched insurers, lenders or utility companies to save money. In contrast, double that amount have cut back on non-essential spending.
Households are also more likely to make a budget, seek financial advice, or use a payment plan, over switching financial products.
Australians are most likely to switch some form of general insurance (car, home or pet); 25% of us have switched these products in the past year.
The bottom line
"We’re now at a critical point in time for household finances. The results from the Bill Stress Index show that 20% of us are struggling to make ends meet, and it may not take much to push more people into serious financial difficulties.
"Yes, we may just about be financially ok, but that’s not the same as being emotionally fine."
Lance Goodman, co-CEO Compare Club
Go deeper:
