In its latest Consumer Insights report, NAB found that found four in 10 Australians experienced some form of financial hardship in Q4 of 2022 and one in three identify money as a significant cause of stress in their lives, while almost one in four believe they are struggling to make ends meet.
Financial hardship continues to be more prevalent in rural and regional areas and among young people and low-income earners.
The most common form of hardship is not having enough money for an emergency, followed by not having enough for food and basic necessities and being unable to pay a bill.
Despite rising interest rates, being unable to meet mortgage repayments caused the least hardship.
The report also revealed that more women (44 per cent versus 41 per cent) continue to record hardship than men, but hardship is increasing more sharply among men (37 per cent versus 31 per cent).
Financial hardship remains most widespread in the 18-29 age group and increased steeply (to 57 per cent versus 45 per cent) and also rose in the 30-49 age group (45 per cent versus 40 per cent) but was basically unchanged in the 50-64 (36 per cent) and over 65 (23 per cent) age groups.
Financial hardship lifted across most income groups, but there remains a large gap between lower (51 per cent, up from 48 per cent in Q3) and higher (31 per cent versus 26 per cent) income groups.
Hardship levels were broadly similar in the $35-50,000 (45 per cent versus 39 per cent) and $50-75,000 (46 per cent versus 41 per cent) and were basically unchanged in the $75-100,000 group (41 per cent).
Around one in 20 who experienced hardship also said it was caused by being unable to meet minimum credit card repayments (6 per cent) or not having enough to pay off personal loans (6 per cent). Noticeably more Australians under 50 said they were unable to pay rent on time, meet minimum credit card repayments or pay their mortgage than those over 50.
By income, a much higher of low-income earners said they did not have enough money for an emergency (28 per cent) or food and basic necessities (25 per cent). A somewhat higher number in the $75-100,000 income group who said they were unable to pay their mortgage in Q4 (9 per cent or almost twice the national average).
An unchanged one in five (20 per cent) Australians had missed a bill or loan repayment in the last three months. By age, the number who missed a payment was highest by some margin in the 18-29 group and rose to 34 per cent (31 per cent in Q3).
It remained highest in the $75-100,000 group (25 per cent) and lowest in the $100,000 group (17 per cent). The most common type of payment missed (for one in 10 people) were electricity bills, gas and water (9 per cent), and phone and internet bills (9 per cent). Loans from friends or family (7 per cent), insurance (6 per cent), credit cards (6 per cent), BNPL (6 per cent), and housing rent (6 per cent) were next. Around 3 per cent missed an investment loan payment, 4 per cent a payday loan, 5 per cent a home loan or mortgage payment, or a personal loan payment.
