Putting off the bills to keep a roof over our heads

New research reveals many Australians are falling behind on everyday bills to meet housing costs, with potentially serious consequences for those approaching retirement.

The electricity bill arrives, and so does the car insurance renewal, but meanwhile, the mortgage repayment or rent is due, and there’s only enough money to cover some of it.

According to new research, something has to give for many Australians. A Finder survey of more than 1000 Australians found 23 per cent had missed or delayed paying at least one bill in the past year to make sure they could cover their mortgage or rent.

Finder estimates that equates to around 2.3 million households.

Electricity and gas bills were the most commonly delayed, with eight per cent of respondents putting off payment. Six per cent delayed car insurance or credit card repayments, while five per cent postponed home insurance, internet bills or buy now, pay later payments.

For Australians approaching retirement, the findings raise another concern. How do you manage rising household expenses when your working income is about to disappear or substantially reduce?

When the bills start competing

Finder money expert Richard Whitten said the results showed how little flexibility some households had once housing costs were covered.

“When the mortgage or rent takes such a big chunk out of the budget, other bills can easily get pushed down the list,” he said.

“For some, that means holding off on the electricity bill, insurance renewal, or credit card repayment so they can make sure their biggest bill is paid.

“It’s concerning that so many households are in a position where they have to decide which expenses need to wait.”

The research doesn’t identify how many people aged over 60 are affected. However, the consequences of falling behind can be particularly difficult for those living on a fixed income.

Older Australians still paying off a mortgage may have fewer working years available to recover from financial setbacks. Renters relying on the Age Pension can have little room to absorb another increase in household expenses, and delaying certain payments carries risks.

Letting an insurance policy lapse could leave a homeowner facing an enormous bill if their property is damaged. Missing credit card repayments can attract interest and fees, adding to the amount already owed.

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Help is available before bills become overdue

Whitten urged households struggling with payments to contact their providers rather than simply allowing bills to go unpaid.

“Look at your biggest recurring expenses first and see where you can cut costs or negotiate a better deal,” he said.

“Reducing a few regular household bills can create some much-needed breathing room and help stop one missed payment turning into a cycle of late fees, interest or mounting debt.”

There are also protections and assistance programs available.

Energy retailers must provide hardship assistance to eligible customers experiencing payment difficulties. This can include payment plans and information about government concessions.

Households can compare electricity and gas offers through the government’s Energy Made Easy website or, in Victoria, Victorian Energy Compare.

Mortgage holders struggling with repayments can request financial hardship assistance from their lender, including possible temporary changes to repayment arrangements.

Anyone having difficulty managing debts can also contact the National Debt Helpline on 1800 007 007 for free, confidential financial counselling.