A new study by 1Life Insurance reveals a worrying trend as people struggle to cope with rising costs of living. Many report living paycheck to paycheck and relying on loans to cover basic necessities such as food.
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Feeling the pressure of rising costs
Carol Mazzaca, Director of Consumer Services at 1Life, provided insight into this significant finding. “More than 50% of people take loans or advances just to buy food and survive each month,” she explained.
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The impact of repeated interest rate hikes, shrinking budgets and soaring food prices are pushing household finances to breaking point. The majority of survey respondents said they are barely able to keep their heads above water.
For many people, building wealth feels impossible.
Mazaca warns that building intergenerational wealth has become nearly impossible for many individuals. The constant financial pressure means more than half of those surveyed admitted to having to dip into their retirement accounts and savings just to eat.
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When your budget is maxed out, long-term goals feel out of reach. To compensate, some people struggle to juggle side jobs or side jobs, further impacting their quality of life.
The cost of living crisis has people feeling gloomy
As a result of this harsh economic reality, people are understandably feeling depressed. One survey respondent said, “With high unemployment and persistent poverty, many families are struggling to make ends meet.
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As a result, the gap between the right and the poor continues to widen, exacerbating social inequalities and further deepening the cycle of poverty for already marginalized groups. ”
Essential goods hit hardest by the squeeze
Another participant said: “The Reserve Bank doesn't want to lower interest rates. Food prices are too high. Everything is too expensive.”
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