Tough economic conditions are negatively impacting household budgets, according to Dun & Bradstreet’s Consumer Credit Expectations Survey.
The survey found that Australians are struggling with their finances, with 39 percent indicating they would only be able to survive 30 days on their current savings if they lost their jobs, and 38 percent would be forced to cover expenses with their credit cards.
According to Christine Christian, D&B CEO, the current economic climate is making it increasingly difficult for certain demographics to manage their budgets and consequently they are being forced to use credit in an attempt to manage household expenses.
“We are now seeing demographics that were previously relatively stable financially, facing difficulties managing their expenses as the rise in unemployment flows through to households.”
The survey also found that 35 percent are planning to cut back spending in the months ahead, while one in five expect increased debt levels in the coming months.