Secret briefings inside the Reserve Bank reveal a startling surge in the number of middle-class Australians on six-figure salaries seeking a financial crisis support.
In July, members of the RBA’s Financial Stability division met with representatives from the National Debt Helpline – a resource offering those in need access to free financial counselling.
They reveal the NDH has seen a “significant increase in hardship requests” over recent months – especially from Aussies running into strife for the very first time. Some are avoiding obligations to the Australian Taxation Office or deferring their utilities and council rates bills, the memo also noted.
Utility bills were 12 per cent to 14 per cent higher than a year prior, while insurance costs leapt 14 per cent. “Demand is expected to increase over the coming period, particularly since seeing a financial counsellor is required by lenders for those in hardship arrangements and the full effects of higher interest rates and cost of living pressures were still filtering through,” the memo reads.
A staggering 1.5 million Aussies are at risk of falling into mortgage stress. Picture: NCA NewsWire / Jeremy Piper “Much of this distress occurs behind closed doors, affecting individual mental health, family functioning, quality of life and community wellbeing.
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