A new whitepaper has revealed that a significant number of Australians are “embarrassed” by their personal financial situation.
The Financial Fitness whitepaper from Mortgage Choice and CoreData explored Australians’ attitudes and behaviours towards their finances, finding that 34 per cent of Australians are embarrassed by their financial habits.
It found that 42 per cent of Australians feel embarrassed by their personal debt, and one-third hide the fact that they are in debt.
Further, a fifth of respondents said they pay only the minimum amount on their credit card each month, and 11 per cent said they have not paid off their credit card in full for the last three months or more.
“Our research has found that when it comes to their finances, many Australians say they are embarrassed, which may stem in part from their personal debt and overall money habits,” said Mortgage Choice chief executive Susan Mitchell.
“The fact that people are not paying off the balance on their credit card each month is worrying.”
The research also found that more than a quarter (27 per cent) of Australians spend more than they earn, which may explain why they are racking up personal debt.
“These habits may be contributing to the shame and embarrassment some Australians say they feel about their finances. Indeed, the whitepaper reveals that almost a fifth (19 per cent) of Australians say they are living secret financial lives,” Ms Mitchell said.
“This begs the question: are the feelings of embarrassment keeping Australians from taking an active role in managing their money? The research suggests this might be the case, as one-fifth of Australians said they often do not regularly monitor their finances.”