Why Crushing Your Credit in the Gig Economy is More Important Than Ever

The way we work is evolving and as the rise of the gig economy means a growing number of Australians are working as small business owners, independent contractors, or freelancers looking for work/life balance, learning how to overcome the stress of credit debt and avoid bad spending habits has never been more important.

International employment experts predict that as much as one-third of the global workforce is expected to be contractors by 2023.

Research* commissioned by Tribeca Financial, found 11.1 million Australians agree there are distinct contributors to their credit debt situation. 44% of respondents have created debt with indiscriminate, everyday purchases such as ordering takeaway food, their Uber Eats home delivery habit and eating out. More than half (54%) of respondents identified holiday spending, education costs, updating homewares and furniture and ‘big ticket’ purchases as culprits for spiralling debt.

Those of you who are working in the gig economy need to have a clear financial plan to manage irregular income. The first step is to clear any credit debt you have, which can easily spiral out of control when you don’t have a regular income.

It is alarming for people to get into credit debt over insignificant purchases like takeaway food and Uber Eats. The debt mounts up, leading to Aussies managing debt with high-interest rates. It is concerning, and it’s causing financial stress for two in five Australians.

The research shows nearly 9 million Australians are aware of their own credit mismanagement, and two thirds of this group (63% or 5.4 million Aussies) have experienced issues repaying credit debt.

 Half (48%) of Australians who are aware they have mismanaged their credit, have maxed out their credit card, gone over their spending limit, continued to make purchases with Buy Now Pay Later (BNPL) services or have purposely made purchases late at night to rort the credit card approval system.

Our research found almost nine in 10 Australians have been subject to additional charges relating to their credit card.

We're walking a financial tightrope in Australia, and something needs to change.

To help adapt, our team has created the Great Australian Credit Crush (GACC) - a free and friendly online community where Australians struggling with debt-related stress can access budgeting tips, money-saving advice, support and smart credit-crushing strategies to help them get back in control of their finances - look forward to being able to prepare a new generation of Australian business owners and contractors for a less stressful, sustainable financial future.

Access to the GACC online community gives members free access to money-saving insights that are focused on helping people crush bad credit debt and take control of their financial situation in a way that’s sustainable and stress-free - even when a gig economy lifestyle means income is not always stable and secure.

To find out more about ways gig economy workers can utilise the knowledge the GACC community has on offer, log on and register at greataussiecreditcrush.com.au.

*Research was commissioned and conducted by Lonergan Research on behalf of Tribeca Financial in accordance with the ISO 20252 standard. Lonergan Research surveyed 1065 Australians aged 18 and over. Surveys were distributed through Australia including both capital city and non-capital city areas. The survey was conducted online amongst members of a permission-based panel, between 17 and 21 May 2019. After interviewing, data was weighted to the latest population estimates sourced from the Australian Bureau of Statistics.