Debt or Downsize? How Aussies Are Combating the Cost of Living Crisis

I think that it’s about time that we should all start calling the cost of living crisis a “cost of living catastrophe.” Or a “cost of living car crash.” Because when the price of rent and grain has been crushing folks for this long, it’s time to upgrade our language. 

However, for better or worse, I’m not the king of the Australian vernacular and the cost of living crisis rolls on. This has prompted a lot of Australian families to find different ways to keep their wallets from drying up.

This brings us to Finder. The financial comparison company asked 1058 people how they are dealing with the cost of living crisis, with 48% of its respondents saying that they have or will downgrade their living standards. These people do stuff like cutting back on getting groceries or shopping.

Downsizing also got notable numbers, with 7% of the survey respondents saying that they will or plan to do this. Meanwhile, renting out a spare room got 5%, and moving back in with one’s parents also got 5%. 

Concerningly, 6% of respondents said that they are gambling more or planning to gamble more, which is just an awful way to try and claw out of this cost of living crisis. The chance of winning the lottery is one in 13.9 million. The chance of winning a top prize at the pokies is 1 in 9.7 million. The odds just aren’t in your favour. 

Moreover, another 6% said that they have taken on more debt or are planning on doing so. Which is far from an ideal situation to be in. 

Related: Aussies Are Stealing Food in a Cost of Living Crisis

Related: These Are the Everyday Items Australians Are Cutting Back on As the Cost of Living Rises

Finder’s Head of Consumer Research, Graham Cooke, has called the current cost of living crisis “ruthless.”

“The cost of living crisis is forcing people to take extreme action to boost their financial position,” said Cooke.

“Rising costs are leaving people facing some pretty scary deficits. We’re seeing massive increases in the cost of housing, groceries, energy, and transport.”

If you need to get a tad forward in this cost of living crisis, a legit and serious budget can help. You can also make sure that you’re hunting for deals, being smart with your electricity use, and demanding that our governments do more to quell this ongoing crisis.

As Cookie said, “No matter how desperate you are, it’s never too late to start taking back control of your finances.”

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