One in four Australians dealt with financial trouble in the last 12 months, according to new research released today by Citibank.

The research was commissioned by Citi and conducted by The Australia Institute for this year's Citi-FT Financial Education Summit which takes place in Sydney on 1 and 2 December.

Of those financially challenged, two in three borrowed money from friends and family, and one in two maxed out their credit card, the report says.

Other findings showed 21 percent of Australians could not afford to pay household bills on time in the last year and 12 percent could not afford to buy food and groceries. The figures were much higher amongst low income households.

Louise Martin, Head of Community Relations at Citi Australia said the findings show Australians need fresh ways to tackle the financial education crisis.

"Our report identifies a range of categories to describe the way people make financial decisions. These offer a really practical insight and will be a valuable tool for people who are involved in financial education and counselling programs."

Stephen Roberts, Citi Country Officer for Citi Australia said "The global financial crisis has shown us that now more than ever, it's vital that people are better informed about the financial decisions they make."