Australia’s problem with debt

By Grace Ormsby

January 29 2020
Share

One-quarter of Australians ignore their debt because they don’t want to talk about it, which is leading to feelings of anxiety and embarrassment, a new survey has revealed.

An ING study found that nearly half (47 per cent) of Australians feel “anxious” about the subject of debt, while almost four in 10 people (38 per cent) are “embarrassed” by it.

A spokesperson for ING, David Breen, said that “the problem with not talking about debt is that options to solve the problem don’t then readily present themselves”.

One in three respondents (37 per cent) revealed that they are not sure what they could be doing differently to manage their debt, while a similar figure (38 per cent) reported concerns around ever being able to get out of a debt situation.

ING highlighted that a majority of respondents in the survey didn’t even know there were solutions available to them for the tackling of repayments: Six in 10 Australians have never considered debt consolidation as an option to get out of debt sooner.

“For those struggling to manage multiple debt repayments, consolidating debts into one low-interest loan can reduce the stress of multiple repayments and high interest rates,” Mr Breen flagged.

He said a personal loan “can be a great way to put all your debt in one place, so you know when, and how much, you’re paying off”.

The research also revealed that one in three (35 per cent) people who are currently in debt haven’t considered cutting back their spending as an option to reduce their debt.

Of even more concern was the finding that a similar figure (33 per cent) also admitted to turning to gambling or lotteries in the hope of wiping out their credit.

“Stigma related to loans and debt mean[s] we’re a nation too embarrassed to discuss our finances,” Mr Breen commented.

“We need to get people talking about their debt and workshopping management options, whether that’s opening up to friends, family or a financial adviser.”

About the author

Grace Ormsby

Grace is a journalist on Momentum Media's nestegg. She enjoys being able to provide easy to digest information and practical tips for Australians with regard to their wealth, as well as having a platform on which to engage leading experts and commentators and leverage their insight.

About the author

Grace Ormsby

Grace is a journalist on Momentum Media's nestegg. She enjoys being able to provide easy to digest information and practical tips for Australians with regard to their wealth, as well as having a platform on which to engage leading experts and commentators and leverage their insight.

sections

most read

sections

most read

sections

most read

sections

most read

sections

most read

sections

most read

sections

most read

Most read

Age Pension increase prompts Australians to review their finances

Latest Podcast

Trust, technology and triage: what NSW’s ‘name and shame’ signals for real ...

Resources

There is $17.5 billion in lost and unclaimed super across ...

Borrow