Conclusions

			Conclusions

			The experience of financial stress does not occur in a 

			uniform manner across all households in New South Wales.

			Some households are more likely to experience this 

			form of stress, particularly those:

•

			with an income of $52k per year or less

•

			where the main source of income 

			is government benefits

•

			which report a decline in annual 

			income over the past 12 months

•

			which report spending more than they earn

•

			which roll-over credit card debt and are 

			unable to pay this off on a yearly basis.

			This last point, the use of credit cards and the ability to 

			pay off credit card debt, shows a significant difference 

			in the way households under financial stress and 

			those not in this state manage their money. While it 

			is apparent that fewer households in financial stress 

			have a credit card, when they do, the amount owing 

			is significantly higher than that of non-financially 

			stressed households. An inability to pay this debt off 

			and a likely reliance on this form of debt for household 

			expenses has the potential to place added stress on 

			the household (as a result of higher interest rates and 

			continual, monthly reminders of debt balances).

			While there has been no change in the severity of 

			impact as a result of experiencing financial stress, it is 

			also clear that the impacts of financial stress remain 

			considerable. Impacts were observed across all 

			aspects of life, including at an individual, household 

			and community engagement level. 

			Of considerable concern is the finding that more that 

			28 precent of individuals from households classified as 

			experiencing financial stress indicated that they had 

			suffered a diagnosed mental illness as a result.

			What is also clear is that individuals in households 

			that are classified as financially stressed have difficulty 

			feeling positive about the future and their ability to 

			cope with future expenses and unexpected costs. This 

			inability to see beyond the stress of today has the 

			potential to have deep, long-lasting impacts on an 

			individual and their family.

			Given the increased prevalence of financial stress 

			in New South Wales, the clear negative impacts 

			of financial stress on individuals and families, and 

			the long-lasting effects of stress, developing and 

			implementing effective policy and practice solutions 

			to assist families in managing, coping with and 

			navigating financial situations will be critical in reducing 

			negative impacts and potential harm caused by 

			financial stress to individuals, families, communities, 

			and the state's economy. 

			“What is also clear is that individuals in households that are 
			classified 

			as financially stressed have difficulty feeling positive about the 
			future 

			and their ability to cope with future expenses and unexpected 
			costs.”

48

			The Wesley Report

			wesleymission.org.au