Surging interest rates are prompting Australians to rethink their future plans
Yes
No
40% of Australians said their ability to make repayments would be affected if interest rates increased
As interest rates go up, so do repayments. Whilst most said they will be affected with interest rate increases at some point in the next 12 months, 4 in 10 said they will struggle to make repayments on their debt. This is a 10% increase from the year before.
29.5%
40.8%
70.5%
59.2%
of WeMoney members are currently facing some challenges in making payments according to Experian Bureau data.
25%
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Back pockets lighter with rising energy and food prices
Moreover, there has been a moderate increase of $6 on supermarket spending, equivalent to a 10% rise. The new average now amounting to $66.
Expenditure at the petrol pump has experienced a rise of $17 or 40%, creating a new average of $58. The above figures indicate that WeMoney members have witnessed significant changes in their average payment sizes for utilities, supermarket expenses, and fuel costs since the start of the year.
Since January, there has been a substantial increase in average payment sizes for utilities among WeMoney members, rising by $93 or 79% to $213.
50%
40%
State of the economy
survey
0.0%
20.0%
40.0%
60.0%
80.0%
2022
2023
Experian and WeMoney have come together to survey 1,277 Australians to uncover their thoughts and feelings on the current state of the economy.
1 in 2
90%
Australians are financially struggling
have been impacted by the rising cost of living
2 in 3
1 in 2
are not prepared for the upcoming changes in the Australian economy
Australians are feeling worried about the economy
28.5%
16.1%
17.5%
10.6%
27.3%
WEMONEY ASKED:
Due to the rising costs of living, how much more are you spending per week on regular household items?
$0-$50
$50-$100
$100-$150
$150-$200
$200 +
Two thirds believe they can do it better
Planning to invest
Planning to invest
MORE OF
LESS OF
Which of the following will you do more or less of in the next 12 months due to rising interest rates?
20.0%
40.0%
60.0%
80.0%
65.0%
21.0%
17.7%
9.0%
Prioritise my savings
Change jobs
0.0%
Invest in the share market (i.e Stocks)
Travel overseas
Buy a home
Invest in crypto
None
Buy an investment property
8.1%
6.3%
6.0%
5.8%
5.0%
10.0%
15.0%
20.0%
18.4%
15.9%
15.9%
12.8%
12.7%
11.8%
10.5%
2.1%
Travel overseas
Prioritise my savings
Buy a home
Buy an investment
Invest in the share market (i.e Stocks)
Change jobs
Invest in crypto
Other
0.0%
5.1%
Other
Experian data reveals it's clear Australians are having to adapt their elective spending to accommodate for the financial impact of interest rate rises. Event ticket purchases by WeMoney members have decreased 15% since January. Additionally, there has been a decline of 20% in travel transactions for upcoming holidays during the same period.
Over 50% of Australians are struggling to save more than 10% of their income
40% of Australians are living pay check to pay check
Experian data shows a notable increase in the number of overdraft fees charged to WeMoney members since January. This indicates that members are encountering challenges in effectively budgeting until the end of the month.
In addition, WeMoney members have exhibited a slight reduction of 5% in their subscription payments since the start of the year, suggesting that some members are actively cutting back on their discretionary expenses.
50%
1 in 3
are actively looking to refinance their debt products over the next 12 months
are looking to earn additional income due to the change in the economic landscape
65%
80%
are prioritising savings the next 12 months
are concerned rising interest rates will impact their future financial plans
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Don't blame it on the lettuce, blame it on the paycheque
Strongly disagree
9.6%
23.7%
Disagree
28.3%
Neither agree nor disagree
Strongly agree
Agree
31.9%
6.6%
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WeMoney asked:
WEMONEY asked:
I feel on top of my day-to-day- finances
Australians are financially struggling
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Strongly disagree
9.6%
Disagree
23.7%
Neither agree nor disagree
28.3%
Strongly agree
Agree
31.9%
6.6%
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