Australians face financial stress while paying off interest.

Interest payments surge pushes more homeowners to financial stress

Several Australian homeowners are finding it challenging to pay off their interest and are forced to dip into their savings.

Compared to April of last year, one in 20 mortgage-holding families now struggles to pay for food and electricity.

This is based on the semi-annual health assessment conducted by the Reserve Bank of Australia.

Despite the rising number of stressed households, the survey showed that Australia’s banking sector is still essentially robust.

The RBA concluded that because of the robust labor market, most households could manage the effects of increased inflation and interest rates, leaving the door open for another rate hike this year.

- Published By Team Australia News

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