How to Deal With Financial Stress in Australia

How to Deal With Financial Stress in Australia

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Financial stress can happen to anyone. Sometimes it starts with rising rent or groceries. Other times it is caused by losing money unexpectedly, reduced work hours, debt repayments, medical bills, or simply trying to keep up while costs continue rising.

For many Australians, money stress is not just about numbers in a bank account. It can affect sleep, relationships, physical health, confidence and decision-making.

This guide explains:

• What financial stress is
• Common causes of financial stress in Australia
• How financial stress and mental health are connected
• Financial stress symptoms to watch for
• How to deal with financial stress step by step
• Free support services available in Australia
• When borrowing may or may not help

If you need short-term support for an urgent expense and can comfortably afford repayments, Credit24 may be one possible option to explore after reviewing your budget and support options first.

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What is financial stress?

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Financial stress is ongoing worry, anxiety or pressure caused by money problems or uncertainty about your financial situation.

It can happen because of:

• Debt repayments
• Lack of money for essentials
• Rent or mortgage pressure
• Job insecurity
• Rising living costs
• Loss of money or savings
• Difficulty covering bills

Financial stress Australia searches have increased as more households feel the impact of higher living costs, energy bills and insurance costs.

Importantly, financial stress is not only about income level. Someone can earn a regular wage and still experience financial strain if expenses, repayments or dependant costs become too high.

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Common causes of financial stress in Australia

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Financial stress often has more than one cause. Many Australians experience overlapping money problems that create ongoing financial anxiety and pressure.

Common causes include:

• Rising rent, groceries, transport and energy costs
• Debt repayments becoming difficult to manage
• Losing money through unexpected expenses
• Reduced work hours or irregular income
• Car repairs, medical costs or family emergencies
• High-interest credit card debt or BNPL repayments
• Financial insecurity caused by limited savings
• Supporting children, parents or other family members
• Problem gambling or impulse spending

The goal is not to solve every money issue immediately. It is to identify the biggest pressure points first and reduce immediate financial strain where possible.

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How does financial stress affect your health?

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Financial stress and mental health are closely connected. Ongoing money anxiety can affect emotional wellbeing, physical health, relationships and daily functioning.

People experiencing financial stress may notice:

• Anxiety or constant worry
• Feeling overwhelmed or emotionally exhausted
• Irritability or low mood
• Trouble sleeping
• Headaches or physical tension
• Difficulty concentrating
• Reduced motivation

Money and mental health problems can also affect behaviour. Some people avoid opening bills or checking bank accounts because it increases anxiety.

If someone feels unsafe, at risk of self-harm, or unable to cope, they should call 000 or contact Lifeline on 13 11 14 immediately.

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Financial stress symptoms to watch for

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• Trouble sleeping because of money worries
• Feeling tense, angry, panicked or hopeless
• Avoiding bills, calls or bank statements
• Constant financial anxiety
• Arguing about money with family or partners
• Feeling guilty spending money on essentials
• Using gambling or alcohol to cope
• Feeling too depressed to work but need money

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How to deal with financial stress: First steps

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When money problems build up, many people freeze or avoid dealing with them. That is understandable, but small practical actions usually reduce stress faster than trying to fix everything at once.

Focus first on:

• Housing
• Food
• Utilities
• Transport
• Medical needs
• Essential repayments

Avoid rushed financial decisions while panicked.

Choose one manageable step today:

• Open overdue letters
• Check account balances
• Call a creditor
• Review bills
• Ask for help

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1. Get a clear picture of your financial situation

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Write down:

• Income coming in
• Essential expenses
• Debt balances
• Minimum repayments
• Due dates
• Interest rates

The goal is not judgement. It is visibility.

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2. Make a short-term survival budget

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Focus on the next 2 to 4 weeks rather than a perfect yearly budget.

Prioritise:

• Rent or mortgage
• Food
• Utilities
• Childcare
• Transport
• Medical costs
• Minimum debt repayments

Pause non-essential subscriptions where possible.

3. Contact creditors before payments are missed

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Many banks, utilities, lenders and insurers have hardship support teams.

You can ask about:

• Payment pauses
• Reduced repayments
• Hardship arrangements
• Fee waivers
• Payment plans

Contacting them early usually gives more options.

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4. Ask for free help if debt feels unmanageable

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Financial counselling in Australia is free, independent and confidential.

A financial counsellor can help you:

• Prioritise debts
• Negotiate with creditors
• Understand hardship rights
• Build a practical plan

National Debt Helpline on 1800 007 007 is a strong starting point.

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How to stop stressing about money day to day

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Helpful strategies include:

• Keeping regular sleep and meal routines
• Taking short walks or exercising
• Breaking tasks into 20-minute sessions
• Avoiding doom-scrolling financial news
• Talking to someone trusted

If financial anxiety or depression symptoms continue for more than a few weeks, speak with a GP or mental health professional.

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What to do if you have lost income or cannot work

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Losing work, reduced hours or illness can quickly increase financial stress.

If this happens:

• Check eligibility for Centrelink support
• Contact lenders about hardship support
• Ask employers about temporary flexibility
• Avoid relying on high-interest borrowing without a repayment plan

If mental health is affecting your ability to work, seek support early.

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Money problems to tackle first

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Prioritise:

• Housing arrears
• Utility disconnection risks
• Essential medical costs
• Court notices
• Food and transport

The consequences of poor financial management can include:

• Missed payments
• Late fees
• Credit score damage
• Debt collection
• Legal action

Getting help early can prevent a small financial issue becoming a larger financial struggle.

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Should you borrow money when you are under financial stress?

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Borrowing can help in some situations, but it can also worsen financial stress if repayments are not affordable.

A loan may help when used for:

• Urgent car repairs
• Necessary medical costs
• Temporary bill timing gaps

Borrowing is riskier when used for:

• Gambling
• Impulse spending
• Ongoing income shortages

Compare:

• Total loan cost
• Repayment amounts
• Fees and charges
• Repayment flexibility

If already behind on multiple debts, speaking with a financial counsellor first is recommended.

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Credit24: Support when a responsible loan may help

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Credit24 offers personal loans and line of credit options from $500 to $10,000 for eligible Australians.

Applications are 100% online and available 24/7, with fast decisions and clear repayment information.

A responsible loan may help with:

• Car repairs
• Urgent bills
• Medical costs
• Temporary cash flow gaps

However, loans are not suitable for ongoing lack of income or situations where repayments would worsen financial stress.

CTA: Apply now

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Where to get help with financial stress in Australia

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National Debt HelplineFree financial counselling and debt support.

MoneySmartGovernment-backed budgeting and hardship guidance.

Beyond BlueMental health support and financial wellbeing resources.

Lifeline24/7 crisis support on 13 11 14.

Healthdirect AustraliaInformation about financial stress and physical health.

Services AustraliaSupport payments and Financial Information Service resources.

AFCAComplaints support relating to hardship requests.

If someone is in immediate danger, call 000 immediately.

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Frequently Asked Questions

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What is financial stress?

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Financial stress is ongoing worry or pressure caused by money problems, debt or rising living costs. It can affect sleep, mood, relationships and physical health.

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How does financial stress affect your health?

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Financial stress can contribute to anxiety, low mood, sleep problems, headaches and emotional exhaustion.

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How do I stop stressing about money?

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Start with small practical steps such as reviewing your budget, prioritising essentials and contacting creditors early.

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Who can I call if money stress is overwhelming?

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National Debt Helpline offers free financial counselling. Lifeline provides 24/7 emotional crisis support on 13 11 14.

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Can financial stress cause depression?

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Ongoing financial pressure can contribute to anxiety, low mood and depression symptoms. Professional support may help.

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Is taking out a loan a good idea when I am financially stressed?

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It depends on the situation. A loan may help with necessary short-term expenses if repayments remain affordable.