Australians experiencing monetary stress are being urged to ask their financial institution or lender for assist, after new analysis revealed that just about half of Australian adults with debt struggled to make repayments prior to now 12 months.
Research from the Australian Securities and Investments Commission (ASIC) discovered 47 per cent of Australian adults with debt – about 5.8 million folks – struggled to make repayments through the previous 12 months, with 64 per cent citing price of dwelling pressures as the explanation.
Other prime causes included a diminished earnings (39 per cent), sudden bills (37 per cent), unemployment (23 per cent), being overborrowed or overcomitted (22 per cent) and a medical scenario (19 per cent).
Almost each individual surveyed who encountered monetary hardship mentioned they’d skilled destructive uncomfortable side effects corresponding to stress, anxiousness, lack of sleep or a decline in bodily well being or look.
Despite this, solely 20 per cent had ever sought monetary hardship help, and greater than half mentioned they weren’t even conscious they have been entitled to ask their financial institution or lender for assist.
Thirty per cent of Australians mentioned they’d not search a hardship help association from their lender as a result of they have been nervous it might price them extra in the long term, feared it might negatively impression their credit score rating or didn’t suppose their lender would do a lot to assist.
Meanwhile, 42 per cent mentioned they’d somewhat promote their belongings or belongings and 40 per cent mentioned they’d somewhat get a second job earlier than they utilized for monetary hardship help, findings which ASIC Commissioner Alan Kirkland labelled “concerning”.
“Customers in hardship are entitled under the law to request assistance,” Mr Kirkland mentioned.
“These findings should be top of mind for lenders when supporting Australians in financial hardship.
“The message for Australians experiencing financial stress is that banks or lenders have a responsibility to support customers.
“If you are worried about being able to make your repayments, you’re entitled to ask your bank or lender for help.
“If you aren’t happy with your bank or lender’s response, make a complaint and, if that doesn’t resolve the issue, contact the Australian Financial Complaints Authority.”
ASIC has launched a marketing campaign to encourage Australians who’re struggling financially to ask their financial institution or lender for assist.
The marketing campaign follows the discharge of an ASIC report in May which discovered lenders weren’t doing sufficient to help clients experiencing monetary hardship, with some lenders discovered to have ignored hardship notices and successfully deserted clients who required their help.
“Seeking financial hardship assistance is a right, and lenders are required to respond to every request for hardship assistance,” Mr Kirkland mentioned.
Source: www.perthnow.com.au
