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Perfect storm of credit card debt brewing for Australians during COVID-19

on May 14, 2020 / by Financial Mindfulness

Perfect storm of credit card debt brewing for Australians during COVID-19.

Rapidly falling incomes, a move to card-only payments and a complete avoidance of cash is creating a “perfect storm” for Australians to find themselves in deep financial ruin.

Andrew Fleming, CEO of financial stress busting app Financial Mindfullness, says many Australians are unaware of the debt they are getting into by relying solely on personal credit.

“There is almost one credit card for every adult Australian. In January 2020 just before the crisis, there was $42.6 billion owing on credit cards with $28.4 billion accruing interest,” explains Mr Fleming.

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Perfect storm of credit card debt brewing for Australians during COVID-19

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I could not meet all my weekly expenses.

I had no savings or financial safety net.

I worried about money and finances.

I felt overwhelmed by my financial obligations.

I ate more, drank more alcohol or smoked more because of my financial concerns.

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I found it difficult to sleep because of my financial concerns.

I think financial stress negatively impacted my relationships.

I experienced physical symptoms (e.g., headache, nausea) when thinking about my finances.

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Perfect storm of credit card debt brewing for Australians during COVID-19

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<img src="https://financialmindfulness.com/wp-content/uploads/2019/05/back-1.png"> Financial stress index rating scale.

I could not meet all my weekly expenses.

I had no savings or financial safety net.

I worried about money and finances.

I felt overwhelmed by my financial obligations.

I ate more, drank more alcohol or smoked more because of my financial concerns.

I acted aggressively towards others because of my financial situation.

I found it difficult to sleep because of my financial concerns.

I think financial stress negatively impacted my relationships.

I experienced physical symptoms (e.g., headache, nausea) when thinking about my finances.

I was involved in interpersonal conflicts because of financial stress.

Try
Financial Mindfulness

Financial stress
index rating scale.