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New research from YouGov commissioned by ANZ has shown that 90% of Australians have made adjustments to their spending habits in the last six months.
The most common ways that Australians are making changes include looking for cheaper alternatives when grocery shopping (59%), eating out less (56%), getting fewer takeaways (55%), and shopping for/at cheaper brands (49%).
Making coffees at home instead of buying coffee from a café (37%), taking homemade lunches to work (35%), and delaying holiday plans (33%) are other changes being implemented by people to try and take control of their finances.
The YouGov research, commissioned by ANZ, revealed interesting patterns when it comes to credit card usage, with the most common reasons people cite using a credit card being for emergencies (44%) and to help manage cash flow (36%).
The study was conducted in line with a new feature ANZ has recently launched on their credit cards – ANZ Instalment Plans – which allows eligible customers to buy now and repay later by making a credit card purchase and repaying it at a pace that suits them – by choosing to repay in Instalments of 3, 6 or 12 months. ANZ Instalment Plans allow customers to enrol an eligible Purchase onto a Plan and pay 0% p.a. interest for the term of the Plan, whilst paying a Setup Fee (which is charged up front and payable over the life of the Plan).
Without taking into account any fees or charges associated with instalment plans, 66% of Australians surveyed indicate they would use an instalment plan to repay their credit card purchases – but 30% remain unaware that such an option exists on credit cards. While just over half of Australians (51%) say that the optimum period of repayment for them would be under 6 months, as they seek financial wellbeing in a difficult economic climate.
Many would use an instalment plan (not taking into account fees or charges associated with them) to pay for emergencies or essentials including unexpected medical or vet expenses (23%), car repairs or maintenance (19%), groceries (17%), and school or university fees/tuition (9%).
The research also showed flexibility around purchasing bigger items, such as whitegoods, furniture, home appliances (22%), and home repairs, maintenance, renovation (16%) make instalment repayments appealing.
Key research findings:
Nine in 10 (90%) Australians aged 18-60 are cutting back on their spending, while 48% of Australians have been living on a strict budget in the last six months.
Without taking into account any fees or charges associated with instalment plans, two in three (66%) Australians aged 18-60 say they would use an instalment plan to repay their credit card purchases.
A good rewards program was the biggest reason why young users aged 18-34 chose their primary credit card (41%), while a low annual fee was the biggest reason amongst older users.
ANZ Wealth Adviser, Liana Cauchi, said: “It’s clear from the research that many Australians are adjusting their spending and saving habits according to the current financial climate. ANZ Instalment Plans were introduced to provide ANZ credit cardholders with a manageable way to buy and repay unexpected purchases and work towards financial wellbeing. Having the option to be able to pay back credit card purchases over instalments can be a great benefit to our customers.”
“We know the difficulties that many are facing when it comes to both everyday items and those larger unexpected expenditures, so this is another tool that might assist with monthly budgeting. Our customers are needing assistance when it comes to cash flow management and Instalment Plans have been introduced to ANZ credit cardholders as an option that might help with that.”For more information visit: https://www.anz.com.au/personal/credit-cards/instalment-plans/
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