1 in 3 Aussies wouldn’t survive more than 2 weeks without work on their current bank balance
New Mozo research found that one in three Australians admit their bank account balance wouldn’t get them through two weeks without work. This finding is particularly alarming being that 6.2% of the population is currently unemployed, a figure set to rise with the economic fallout of the Coronavirus pandemic.
“With job security fears tripling since January this year, many people are scrambling to save every penny as they prepare for the possibility that they may not remain gainfully employed,” said Kirsty Lamont, Mozo Director.
“As a nation, we have historically high debt levels and low savings, so the impacts of Covid19 have left many feeling uneasy about their bank balances.”
“43% of Australians have admitted they are struggling to repay their current debt levels and three out of five Australians are saving more and spending less compared to pre-Covid19 as they brace for an uncertain future.”
Mozo’s research also revealed that an astounding 49% of Australians who are currently employed are having doubts about whether they’ll still be in a job in just six months time.
“There is concern for the future as unemployment grows, mortgage holidays end and Jobseeker payments are reduced. Many Aussies will be doing it tough and there are going to be some big financial hits,” Lamont said.
To make matters worse, the Jobseeker payment is set to drop by 50% in September and, with Aussies spending $1,096 on average per fortnight, this means $268 less than the average weekly expenditure.
Understandably, many people now fear whether they’ll manage to keep a roof over their heads in the coming months.
“Mozo research has found that 89% of property owners on a mortgage holiday are worried about their repayment holiday ending, with more than half saying they hold concerns about having to sell their home if they can’t meet these payments,” Lamont said.
“Of those renting, 67% were concerned about being kicked out when the six-month eviction moratorium ends.”
“In September we will see Jobseeker significantly reduced, Jobkeeper ending, the six-month rental moratorium finishing and many mortgage holidays coming to an end - we’re going to see a new level of hardship across the country.”
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