Rising interest rates and high inflation are likely to take a big bite out of household budgets, come the new year. The turn of the new year is ushering in unwelcome news to homeowners and anyone with a mortgage; rising interest rates and surging inflation are predicted to push household budgets past their breaking point. With 2022’s rate hikes, the cost of borrowing for everything from home loans to credit cards will likely skyrocket in 2023, leading millions of Aussies into financial difficulties.
The quicker-than-expected rise of prices for both goods and services looks set to further strain family finances, pushing consumers towards debt and away from a balanced budget. Analysts remain on high alert as we enter the new year, urging everyone with an existing loan or outstanding debt to plan ahead and brace themselves for tough times ahead.
