Survey reveals debt remains a key driver of financial stress
Debt-related anxiety continues to affect a significant portion of Australians, with new data from Agile Market Intelligence’s July Consumer Pulse survey showing little improvement in financial wellbeing.
The findings highlight that 41% of those with consumer debt report feeling anxious about their finances—far higher than the 27% of debt-free respondents – while overall financial sentiment remains subdued.
The survey found that only 23% of Australians saw their financial position improve over the past year, while 35% reported being worse off and 42% experienced no change. The divide between debt-stressed and debt-free households is widening, with debt holders consistently reporting higher levels of anxiety and negative cashflow.
“We’re seeing a split consumer landscape – while some households hold steady, others are stuck in a cycle of debt and distress,” said Michael Johnson (pictured right), director at Agile Market Intelligence. “Debt remains one of the most reliable indicators of financial anxiety.”
Cashflow data further underscores the pressure on indebted Australians. One in three respondents reported positive cashflow, while one in five said theirs was negative.
Among those with consumer debt, 26% were in deficit and only 27% in surplus. Unemployed Australians faced the greatest challenges, with 38% reporting negative cashflow and 59% experiencing anxiety.
Anxiety levels have stabilised but remain elevated, particularly for those carrying personal debt or outside the workforce. Mortgage holders reported lower anxiety at 26%, and retirees were the most financially secure, with 25% reporting anxiety.
Perceptions of financial health remain weak. Forty percent of consumer debt holders said their situation had worsened in the past year, and more than half of unemployed respondents (52%) also reported being worse off. Debt-free households were more likely to report stability, with only 33% saying their financial position had deteriorated.
“When nearly half the population reports no change and only a fifth see improvement, it’s clear the recovery narrative hasn’t reached most households,” Johnson said. “For those in financial distress, the past year has offered little relief. However, it does appear that the trends are moving in a slightly more positive direction.”
While overall cashflow has not worsened for most, vulnerable groups – especially those with debt or without employment – continue to face significant financial strain.
“We’re seeing a plateau in household cashflow, but not a rebound,” Johnson said. “The question now is how long vulnerable groups can maintain this fragile equilibrium.”
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