Older Mortgage Payers Increase Leading to Mental Health Issues
Updated: Aug 30, 2019
Mental health is one of the most important yet the most overlooked issues in our society. For years, many people have struggled with it but didn’t get the right information and service. Fortunately, more attention is now given to the matter because people are coming forward to talk about it.
Various factors are contributing to poor mental health. There’s stress, pressures, and personal problems. But seems like there’s one more contributing factor to this. Although it is not something anyone would expect, it definitely is alarming news.
We have previously talked about mortgages in Australia and how it’s become such a big problem. According to recent reports, the number of Australians over the age of 55 that continue to pay for mortgages experiences growth like never before. Reports indicate that the increase skyrocketed to 600 percent in almost 30 years. The report adds that because of this, older homeowners are stressing out over it contributing to poor mental health.
This is not the only problem the older Australians are going through. According to the same study, the debt-to-income ratio or the gross monthly income percentage that is allotted to paying monthly debts also increased greatly. From 71 percent, the debt-to-income is now 211 percent.
Just by looking at the figures will indeed give anyone feelings of worry.
The Australian Housing and Urban Research Institute did research and the results indicated that poor mental health is very apparent in older Australians, most especially among women. The study adds that because women are more sensitive about changes like this. Bigger debt means adjustments will be made—which could be something that they did not see coming. The Australian housing system is said to be undergoing a “significant transformation”. This could mean different things, including the financial aspect.
What could be done?
The mental health of all people should never be ignored. In addition to stress over rising debt, older Australians also contend with job insecurity and pension poverty. As we have mentioned before in our blog post, there are programs to help less privileged individuals in Australia. It is also important that the government create the necessary adjustments for this important matter.
The number of Australians aged 55 to 64 on the Newstart Allowance reached 184,790. Unemployed Australians that need to pay off a mortgage will have to pay it through their savings, which could lead to really big problems in the future.
The only other option retirees are actually embracing is renting because they can no longer work to settle their mortgage repayments. Others just don’t have the means to buy a home at the moment. While this issue obviously needs a more permanent solution, shared housing or rooming houses is a great temporary answer. Australians struggling to find a place to stay will now have a chance to lessen the stress of finding a safe home for them. Temporary accommodation could be a great alternative for those who are saving up for a deposit or simply trying to live a minimalist lifestyle or live within their means.
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