COVID-19: 62% of Aussies struggle with debt and some fear worst is yet to come

By Polly Fleeting · · 2 min read
Fact Checked
Advertiser disclosure

There’s no doubt that COVID-19 has had an immense impact on many Aussies’ personal finances. And today, the latest numbers spoke for themselves. 

This morning, data analytics and consumer intelligence company, J.D. Power’s latest Banking Industry Insight showed a whopping 62% of Australians cannot manage their debt as a result of the coronavirus. 

It also unveiled that 77% of people say they are feeling financially stressed during this time, with 24% indicating they are extremely stressed. 

“With many Aussies facing financially strapped times as a result of COVID-19, it’s not surprising that many are struggling to manage the debt they have,” Mozo Director, Kirsty Lamont said. 

“If you are feeling financially stressed, it’s important to call up and ask your bank or lender what options are out there for you, because you may be able to get things like a repayment freeze, a rate reduction or even a pause on fees.” 

While J.D. Power’s stats also considered credit card debt and home loan debt, it showed that 11% of personal loan customers cannot make their current repayments. 

As a result, customers have been requesting personal loan repayment relief from banks and have specified that they’d like to receive more information about what options are available to them. 

According to the survey, 24% of respondents indicated they want their monthly service fees waived, while 15% would like a repayment freeze. 

RELATED ARTICLE: COVID-19: Will a personal loan repayment freeze affect my credit score?

How are Aussies feeling about their bank?

Less than a third of Australians say their bank has helped in their hour of need, with only 29% indicating that their bank has shown concern for their financial situation since the outbreak of COVID-19. 

And when it comes to big four customers, the numbers are relatively the same: 

  • ANZ: 33% 
  • NAB: 33% 
  • Westpac: 28% 
  • Commonwealth Bank: 26% 

As the full financial impact of COVID-19 is yet to be determined, it’s obvious that these numbers aren’t promising. 

In fact, 35% of Aussies believe the effect of the pandemic on their personal finances may not have peaked yet and that the worst is still yet to come. 

RELATED ARTICLE: COVID-19: Which lenders offer relief on personal loans?

Need to find a personal loan with a more competitive rate? Take a look at the table below or jump over to our personal loan comparison tool.

Personal Loans 2020

Mozo may receive payment if you click products on our site. We don’t compare the entire market, but you can search our database of 234 personal loans.
Last updated 24 November 2024 Important disclosures and comparison rate warning*
  • Low Rate Personal Loan

    Excellent Credit, $5,000 - $75,000

    interest rate
    comparison rate
    Monthly repayment
    6.57% p.a.to 8.39% p.a.
    7.19% p.a.to 8.75% p.a.based on $30,000
    over 5 years

    Competitive low rates for borrowers with excellent credit on 1-7 year loans from $5,000 up to $75,000, plus free extra repayments. Winner of Mozo's Experts Choice Excellent Credit Unsecured Personal Loan 2024 and Excellent Credit Secured Personal Loan 2024 awards ^. Min. income of 25k after tax, to apply.

    Repayment terms from 1 year to 7 years. Representative example: a 5 year $30,000 loan at 6.57% would cost $35,528.12 including fees.

    Compare
    Go to site
    Details
  • Unsecured Personal Loan

    Fixed

    interest rate
    comparison rate
    Monthly repayment
    6.75% p.a.to 26.95% p.a.
    6.75% p.a.to 26.95% p.a.based on $30,000
    over 5 years

    Borrow up to $50,000 unsecured. Perfect if you earn more than $22,100 p.a. and have good to excellent credit. Multi-year winner of Mozo’s Experts Choice Unsecured Personal Loan Award, 2021, 2022, 2023 & 2024^'

    Repayment terms from 2 years to 7 years. Representative example: a 5 year $30,000 loan at 6.75% would cost $35,430.23 including fees.

    Compare
    Go to site
    Details
  • Debt Consolidation Loan

    $5,000-$75,000

    interest rate
    comparison rate
    Monthly repayment
    6.57% p.a.to 18.99% p.a.
    7.19% p.a.to 19.39% p.a.based on $30,000
    over 5 years

    Competitive fixed rates on loans up to $75,000 depending on your credit score. Zero monthly account keeping fees, no exit fees and no early repayment fees. Make weekly, fortnightly or monthly repayments, over 1 to 7 years managed entirely online, at any time. Fast and easy, 100% online application.

    Repayment terms from 1 year to 7 years. Representative example: a 5 year $30,000 loan at 6.57% would cost $35,528.12 including fees.

    Compare
    Go to site
    Details
  • Unsecured Personal Loan

    interest rate
    comparison rate
    Monthly repayment
    6.56% p.a.to 21.99% p.a.
    6.56% p.a.to 22.79% p.a.based on $30,000
    over 5 years

    Competitive fixed rates for borrowers on 1-7 year loans from $5,000 up to $50,000. $0 monthly fees and no early repayment fees to pay. Fast application process on the Revolut app. According to Revolut and subject to loan approval, you'll receive your money into your Revolut account straight away.

    Repayment terms from 1 year to 7 years. Representative example: a 5 year $30,000 loan at 6.56% would cost $35,768.68 including fees.

    Compare
    Go to site
    Details
  • Express Personal Loan

    Secured

    interest rate
    comparison rate
    Monthly repayment
    16.95% p.a.to 29.95% p.a.
    32.99% p.a.to 45.5% p.a.based on $10,000
    over 3 years

    Access fast finance on loans from $3,000 to $25,000 with a Jacaranda Finance Personal Loan. Terms from 25-36 months. Check if you qualify with no impact on your credit score. Enjoy a speedy, online approval.

    Repayment terms from 2 years to 3 years. Representative example: a 3 year $10,000 loan at 16.95% would cost $14,952.03 including fees.

    Compare
    Go to site
    Details
  • Secured Personal Loan

    $5,000-$75,000

    interest rate
    comparison rate
    Monthly repayment
    6.57% p.a.to 18.99% p.a.
    7.19% p.a.to 19.39% p.a.based on $30,000
    over 5 years

    Get a secured personal loan with competitive low rates for borrowers with excellent credit. A simple fixed interest rate that can be repaid weekly, fortnightly or monthly, over 1 to 7 years (10 years for Green Loans). Managed entirely online, at any time. No monthly account keeping fees, no exit fees and no early repayment fees. Quick and easy, 100% online application. Establishment fees apply.

    Repayment terms from 1 year to 7 years. Representative example: a 5 year $30,000 loan at 6.57% would cost $35,528.12 including fees.

    Compare
    Go to site
    Details

* WARNING: The Comparison Rate combines the lender's interest rate, fees and charges into a single rate to show the true cost of a personal loan. The comparison rates displayed are calculated based on a loan of $30,000 for a term of 5 years or a loan of $10,000 for a term of 3 years as indicated, based on monthly principal and interest repayments, on a secured basis for secured loans and an unsecured basis for unsecured loans. This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan.

^See information about the Mozo Experts Choice Personal Loan Awards

Mozo provides general product information. We don't consider your personal objectives, financial situation or needs and we aren't recommending any specific product to you. You should make your own decision after reading the PDS or offer documentation, or seeking independent advice.

While we pride ourselves on covering a wide range of products, we don't cover every product in the market. If you decide to apply for a product through our website, you will be dealing directly with the provider of that product and not with Mozo.

Compare personal loans