Over the past few years, Australia has coincidentally, or even contentiously, been referred to as a ‘nation of freeloaders’ for a number of reasons. Recently, a less than appealing statistic stuck out like a sore thumb adding to this list.

According to a study by Finder, 1 in 4 Australians (4.8 million people) are waiting on their friends to repay them for the odd monetary favour, whether it is splitting a restaurant bill, paying for event tickets or sharing a taxi.

“Not repaying money breaks trust and can put strain on the relationship, but it could also cause financial problems for the friend left shouldering the debt,” said Sarah Megginson, money expert at Finder.

The global comparison website proposed a few ways to remedy the issue should it arise, namely, asking the defaulting friend to repay the debt, resetting boundaries or, if the gloves really need to come off, issue a letter of demand with the threat of taking legal action.

Some could agree that the suggested measures are largely and arguably justifiable, considering the Australian Bureau of Statistics has reported that the Consumer Price Index had risen by 7.8% in the 2022 December quarter, compared with the same period in 2021.

Living Cost Indices (LCI) measure the price change of goods and services and its effect on living expenses. Among the LCIs of five household types, Employee households at 9.3% were the most affected compared with the 7.4% average of remaining household types.

Though ‘Mortgage interest’-related expenses claimed top spot with a 26.6% increase in terms of quarterly movement (December 2022 quarter), ‘Recreation and culture’ was in second place at 5.5%. Rightly so, as Australia’s affinity for socialising is no secret – a walk around a local CBD or inner city suburb or even most regional towns can prove it, plain as day.

However, research house McCrindle has found that 45% of Australians are ‘home bodies’ and 73% have turned down an invitation to go out because they preferred staying at home. Whatever be the reason, friends who fail to fork out could not be making things any better.

So, with the mounting cost of living not necessarily accounting for a good financial climate to the average Aussie, forget about fair weather friends. If one is to use a relevant term, ‘freeloader friends’ is likely to be more recognised and relatable.

Originally published via Finder, who have given permission to Reach Markets to share the content.

Source:

• Finder, Freeloading friends: 1 in 4 Australians owed money by a mate