Aussie's admit poor financial management is sending them broke and making them stressed
One third (31%) of Aussies confess poor financial management such as using cash advances on credit cards, not knowing how to budget, not paying attention to debt, and racking up late fees on credit facilities are contributors to their personal debt situation. Men are more likely than women to have not paid attention to their debt, with credit late fees contributing to their debt situation.
Research* released today by Tribeca Financial, found 11.1 million Australians agree there are distinct contributors to their credit debt situation. 44% of respondents have created debt with indiscriminate, everyday purchases such as ordering takeaway food, their Uber Eats home delivery habit and eating out. More than half (54%) of respondents identified holiday spending, education costs, updating homewares and furniture and 'big ticket' purchases as culprits for spiralling debt.
Tribeca Financial's CEO Ryan Watson said he is disillusioned about people getting into debt and the community's self-admittance it is drowning in debt.
"It is alarming for people to get into credit debt over insignificant purchases like takeaway food and Uber Eats. The debt mounts up, leading to Aussies managing debt with high-interest rates. It is concerning, and it's causing financial stress for two in five Australians," Mr Watson said.
The research shows nearly 9 million Australians are aware of their own credit mismanagement, and two thirds of this group (63% or 5.4 million Aussies) have experienced issues repaying credit debt.
Half (48%) of Australians who are aware they have mismanaged their credit, have maxed out their credit card, gone over their spending limit, continued to make purchases with Buy Now Pay Later (BNPL) services or have purposely made purchases late at night to rort the credit card approval system.
"I am consistently disappointed by lenders who act in their own best interests, often with no consideration of an individual's ability to manage debt. Our research found almost nine in 10 Australians have been subject to additional charges relating to their credit card.
"But we can't lay all of the blame on credit providers. It seems Aussies are knowingly getting themselves into debt, and banks and financial providers are benefitting as a result.
"So, I am calling all Australians to join me in the 'Great Aussie Credit Crush'. Destroy your credit card, crush your credit, and start living debt free.
"Enough of paying thousands of dollars in interest payments to the banks. Enough with high levels of stress about money. Enough of just keeping your head above water. Let's get Aussies out of the credit trap and support them to pay off the debt," Mr Watson said.
The concept of The Great Aussie Credit Crush is to attract 100,000 Aussies to destroy their credit card and pledge their commitment to paying off the debt by 31 December 2019.
To join the Great Aussie Credit Crush:
1. Log on to greataussiecreditcrush.com.au and pledge your commitment to #crushmycredit
2. Destroy your credit card or cancel your BNPL account
3. Set your own target – how much you will pay off, and when
4. Start paying off the debt!
5. Sign up for weekly helpful hint emails from our support team and join our Facebook group
6. Say it out loud and hold yourself accountable and get support from your friends. Upload a picture to
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