New consumer data released today by the Consumer Policy Research Centre (CPRC) investigates the experience of consumers during the three months from May to July and raises serious alarms about the debt tsunami facing young people (18-34) as they try to make ends meet during COVID-19.
CPRC’s new research initiative Consumers and COVID-19: from crisis to recovery is collecting and analysing the experiences, behaviours, expectations and challenges of Australians throughout the COVID-19 pandemic with monthly quantitative surveys from May to October.
Results from the three months from May to July have painted a picture of concern for young people in particular, as they are increasingly turning to loans or borrowed money from loved ones to stay afloat.
“What concerns us most about these most recent results is that we’ve seen a spike in young people turning to high cost and high-risk credit products just to make ends meet. Over 300,000 young Australians right now are taking out payday loans to manage basic household expenses,” said CPRC CEO, Lauren Solomon.
With increased concern around housing affordability and managing household bills, young Australians have been more active in reaching out to providers for help, with around 30% getting in touch to switch plans, ask for payment assistance or access concessions.
However, negative experiences with essential service providers are on the rise across all sectors with over 30% of consumers reporting some type of poor experience with at least one provider in the previous 4 weeks. Telecommunication providers, landlords and property managers were outed as offering the worst levels of support.
“Disappointingly, we’ve seen spikes in consumers reporting problems when reaching out for assistance across every essential service market. The message to companies, and landlords is simple: this burden must be fairly shared. It’s crucial they step up to the mark and provide the hardship support that consumers have a right to access,” said CPRC CEO, Lauren Solomon
The recent data has also revealed startling consumer distress across the general Australian population, as anxieties about the future run high.
Jumps in concern about ability to meet basic household expenses have been seen for every household bill:
Today’s release will be followed by monthly updates on the Australian consumer experience of COVID-19 through to November 2020. Through rolling monthly quantitative surveys, CPRC is collecting and analysing the experiences, behaviours, expectations and challenges of Australians from May to October.
The CPRC’s foundational report Consumers and COVID-19: from crisis to recovery presents building blocks for policymakers and businesses supporting consumers on an uncertain path towards recovery, where policy choices made now will have long-term consequences.
To download Consumers and COVID-19: from crisis to recovery go to: https://cprc.org.au/consumers-and-covid-19-from-crisis-to-recovery/
Consumers and COVID-19 Monthly Briefings will be available at www.cprc.org.au.