Facing Financial Hardship: Australians struggle to seek help, opt for selling assets Instead

ASIC's latest research reveals concerning insights into Australians' financial struggles and their reluctance to seek assistance.

Nearly half of Australian adults with debt, totaling 5.8 million people, have faced difficulties in making repayments over the past year. The primary reasons cited include the escalating cost of living, reduced income, and unforeseen expenses.

Despite these challenges, a significant portion of Australians (30%) indicated they would not approach their bank or lender for hardship assistance. Instead, 42% said they would prefer to sell their belongings or assets, while 40% would opt for securing a second job.

ASIC Commissioner Alan Kirkland expressed apprehension over these findings, noting, "For many Australians, seeking financial assistance appears daunting and challenging. It's concerning that individuals would rather resort to selling assets or taking on additional work than seek the help they are entitled to under the law."

Kirkland emphasised the importance of these findings for financial institutions, urging them to prioritise supporting customers in financial distress. He emphasised that customers experiencing hardship have legal rights to request assistance from their lenders.

The research underscores the need for improved accessibility and awareness of hardship assistance programs to ensure Australians facing financial difficulties can access the support they need promptly and effectively.

*Infographic source: ASIC