Cost-Of-Living Crisis: 37% Western Australians Turn To Loans Or Asset Sales For Unexpected Bills, Says Survey

A survey by the Financial Counselors Association of Western Australia has found that more people than ever were seeking financial help, such as selling something or applying for loans, to deal with unexpected expenses.

The cost-of-living survey indicated that most people in the state were financially vulnerable and may seek loans to pay unexpected bills, according to ABC. The survey, dating back to July, involved 1,074 participants, among which 37% said they would turn to borrowing or selling assets to foot any bill of AU$500 or more.

"[We are seeing] people who have not never reached out to services before," said Financial Counsellors Association of WA executive officer Melanie Hopkinson. "We saw in the report that 51% are cutting back on food or switching to less nutritious food, which obviously has implications."

Hopkinson said people cut back on food when facing financial difficulties because they prioritize having a good house, but later were forced to rely on agencies to buy food and medicine during a financial crisis.

"Our members are seeing people with up to 10 different buy-now, pay-later, or payday loans, for example," she said. "It's very easy to get stuck in a debt spiral when you turn to those kinds of credit."

The report also highlighted concerns about mental health stemming from financial stress. According to the findings of the report, 60% of respondents experienced anxiety or depression due to economic struggles, and 22% were reported to delay or forgo medical treatment due to cost.

The report further stated that the youth were facing a higher financial ordeal. According to the figures presented by the survey, a staggering 83% of 18-24-year-olds had to resort to skipping meals or delaying treatment, with transportation and medical expenses being the additional culprits.