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2 million more Aussies have tumbled into financial difficulty in 2019

Millions more Aussies struggling financially. Source: Getty
Millions more Aussies struggling financially. Source: Getty

Over seven million Australians are struggling financially this year - an increase of two million Aussies on the year before, new research shows.

The Deloitte and Compare the Market research tested 3,000 Aussies for financial wellness and capability, and found 7.5 million Australians felt they were struggling to pay their bills, weren’t saving money regularly and didn’t feel like they had job security.

On top of that, the average Aussie did not pass the study’s financial consciousness test, scoring just 48 out of 100, which was a drop of 3 points on last year.

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“The property market has suffered, the speculation of cash rate falls taking months to finally be announced swayed confidence, the Banking Royal Commission has diminished people’s trust in financial institutions, and retailers have seen a significant slump in spending,” Compare the Market’s general manager of banking, Rod Attrill said.

“The result is that Australians are feeling more uncertain and less confident about their future.”

The study also found that the higher the income and education, the higher the person’s financial consciousness (FC) score, but both high income and low income earners scored lower this year.

Those on incomes of less than $40,000 have an FC score of 43 compared with 44 last year, while those earning more than $190,000 scored 58 this year and 62 last year, according to the report.

Couples living together also had a better FC score than singles, but couples saw the biggest drop in their scores this year.

WA stay-at-home mum, Amy, had a FC score of 57 and while she checks interest rates regularly, monitors the stock market and her loan balance, she doesn’t feel secure.

Currently, Amy’s family only makes minimum repayments on the house, and has more outgoing than incoming cash. She says the family would be in a tough spot financially if her partner were to lose his job as they’re not prepared for a loss of income.

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