Financial stress 'through the roof' as interest rate hikes come home to roost

by business reporter David Taylor

Posted Mon 8 Jul 2024 at 6:04amMonday 8 Jul 2024 at 6:04am, updated Mon 8 Jul 2024 at 7:38amMonday 8 Jul 2024 at 7:38am

More and more private renters are contacting the National Debt Hotline.(ABC Goulburn Murray: Erin Somerville)

A record number of younger Australians are reaching out for financial help as rents and mortgage payments soar, according to new figures from the National Debt Helpline.

Financial counsellor Mike Dunkley said he is experiencing his busiest time at the National Debt Helpline (NDH) in Sydney's Surry Hills.

"I've been on the NDH now for 2.5 years and I reckon this is the busiest I've ever seen it."

Calls started ramping up late last year as higher interest rates started to bite.

"It's going to be three things [people call in about]: number one: mortgages; number two: lots of rent; and lately, for probably the last five or six months, it's the ATO," Mr Dunkley said.

The financial year just gone saw a total of 145,166 calls to the National Debt Helpline — the highest number of calls in four years.

But those in financial distress can also use the helpline's online chat service.

Mr Dunkley said the call centre's figures show, so far this year, the number of chat users should soon surpass the total number of users last calendar year.”

The risk of further interest rate rises on top of cost of living is biting into consumer confidence which is not being counter balanced by a perception that Governments in Australia have the ability or desire to remedy the situation when they give equal prominence to changing the names of rivers and pronouns.

In the USA the Republicans are becoming increasingly confident that President Trump will win the Presidency for a second time and that his election will provide market opportunities that do not presently exist under the Democrats.

Brainchip suffers as a result of a lack of consumer confidence and overall fear about the Australian economy on top of which we have those with the confidence to invest sitting on the sidelines waiting for evidence that the Brainchip commercialisation process has started to gain traction.

These investors know that in the present environment Brainchip simply being undervalued is not a sufficient draw to the nervous and the financially stressed to enter the market it will take a catalyst.

One or two of Sean and Antonio’s deals is what is needed in the face of a continuing flow of news headlines like the one above to open the flood gates.

My opinion only DYOR

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