Lauren Solomon, CEO of the Consumer Policy Research Centre joins Dave to look at a startling picture of consumer distress that has been revealed by the Consumer Policy Research Centre (CPRC)’s Consumers and COVID-19: from crisis to recovery research initiative.
The attached findings investigates the experience of consumers during the three months from May – July.
It’s not good news for young people (18-34) unfortunately with alarms being raised about the debt tsunami facing young people as they try to make ends meet.
- Young people (18-34) in July were:
- three times more likely to have taken out a loan from a payday lender or consumer lease in July than the Australian population.
- twice as likely to have taken out a personal loan.
- twice as likely to have borrowed money or resources from family and friends.
- twice as likely to have accessed assistance from a community organisation or emergency relief agency.
- Young people were also most likely group to have missed payments across every household bill and at a rate of 2-3 times the general population:
- Housing affordability remains a key concern for young people, with over half (52%) of all young renters and just under half of young people with a mortgage (45%) concerned about their ability to payments in July.
- The good news is that the word about the support available appears to be getting out. Young people have been far more active than the general population in reaching out for assistance in managing household bills, contacting providers for payment plans, switching plans or providers or accessing concessions.
Across the Australian population anxieties about the future are running high, with 4.7 million Australians now very concerned about their financial wellbeing – jumping from 19% in May to 24% of the population in July.
Jumps in concern about the ability to meet basic household expenses have been seen for every household bill.