Post-Christmas Financial Hardship

The New Year is usually a time of optimism and opportunity for a fresh start.  However, for many Western Australians, the New Year will usher in financial stress and hardship with post-Christmas debt looming large. 
 
A recent survey by consumer comparison site Finder revealed that approximately 1.7 million Australians had accrued $2.7 billion of debt during the Christmas period, with the average debt being $1,634. 

Although holiday overspending is not a new phenomenon, experts warn that the combination of post-Christmas debt and cost-of-living pressures could create a ‘time bomb’ for those already struggling to afford basic necessities such as food, utilities, and medical bills.   
 
While a quarter of respondents to the Finder survey stated they would be able to pay off their debt in less than a month, the majority will take several months or even years to do so, and likely fall even further into debt due to paying greater amounts of interest and fees from credit cards and Buy Now Pay Later services. 

These findings reflect what Anglicare WA’s financial wellbeing services are seeing, with a spike in service demand this month as people access financial counselling, emergency food relief, and rental assistance. 
 
The rising cost of living is going to be one of the defining issues of the upcoming election, with voters watching closely for substantive and targeted cost-of-living relief measures.  The State Government has made some positive moves to address the issue, but more must be done at scale and pace to address financial pressures.  

That is why Anglicare WA is calling on the State government to: 

• Invest in financial wellbeing and prevention programs; 

• Increase emergency relief funding; and 

• Expand utility grants and concessions to broaden eligibility access. 

To learn more about Anglicare WA’s other cost of living and economic relief election asks, please click here. 

If you require financial support, please click here.