The Australians with the biggest money troubles revealed

Millions of Australians are struggling with debt amid the cost of living crisis but are refusing to ask their bank or lender for help, a new report says.

ASIC’s Moneysmart research says 47 per cent of Australians with debt – the equivalent of 5.8 million people – have struggled to make repayments in the past 12 months.

Reduced income, unexpected expenses and cost of living pressures are the main reasons cited.

Millennials and parents of young children were among the hardest hit.

More than half (54 percent) of Millennials say they are likely to experience financial hardship in the next 12 months, compared to 39 percent of Gen X respondents and 31 percent of Baby Boomers.

And 56 percent of parents with children under 18 say they have experienced a financial crisis in the past year.

However, only one in five say they have sought financial help, with more than half (55 percent) of those surveyed saying they didn’t even know they could.

Thirty percent of respondents said they wouldn’t seek help in principle, fearing it would cost them more in the long run or that their lender would do little to help.

Many would sell their property (42 percent) or get a second job (40 percent) to make ends meet.

The researchers found that there were both practical and emotional barriers to help-seeking.

Thirty-seven percent of respondents were unaware of help available, a third (33 percent) did not know where to start looking, and 31 percent said they did not know who to trust.

Emotionally, stress and anxiety (51 percent), shame and embarrassment (40 percent), and feelings of failure (40 percent) also kept people from seeking help.

In response, Moneysmart launched a new campaign ‘Just Ask! Help is available for difficulties’.

“It is worrying that people are choosing to sell their personal belongings or find a second job rather than seek help for financial difficulties,” said ASIC Commissioner Alan Kirkland.

“Customers in difficulty have the right under the law to ask for help. These findings should be top of mind for lenders when supporting Australians in financial difficulty.”

Kirkland said lenders, including banks, have a responsibility to offer financial support to people struggling with debt.

“If you’re not satisfied with your bank or lender’s response, make a complaint and if that doesn’t resolve the problem, contact the Australian Financial Complaints Authority,” he said.