More people are using pay-on-demand services to access their paychecks early, with the cost of living digging further into the pockets of Australians.
New data from Finder revealed that 14 per cent of respondents – equivalent to 2.9 million people – have used a pay-on-demand service in the past six months.
Cost of living is the most cited culprit, with 7 per cent saying they needed the money to pay a bill, while 4 per cent had a large, one-off expense, such as a medical bill.
READ MORE: Man killed in Parramatta identified as known crime gang associate
Another 3 per cent wanted to use the money for general spending, such as shopping or a night out.
The likelihood of people accessing pay early diminished as people aged, with Generation Z the most likely to do so at 28 per cent, followed by Generation Y (21 per cent) and Generation X (9 per cent).
“If you’re struggling to make ends meet, using a pay-on-demand service can help bail you out of trouble,” Finder money expert Rebecca Pike said.
READ MORE: How Australia’s new ‘right to disconnect’ rules apply to you
“Whilst typically less expensive than traditional payday loans, you’ll still have to pay a fee to access money that is rightfully yours.”
She said the services could be very helpful for unexpected expenses such as a medical bill or car repair, but it could affect peoples’ ability to save.
“Early access to your cash can disrupt your budget plans and make it harder to track your actual expenses,” she said.
READ MORE: Food icon Maggie Beer hospitalised after fall
“It’s important to use the service wisely – it can be a helpful tool if you don’t become reliant on it all the time.”
She urged Aussies to instead consider squirrelling away an emergency fund or talking to their employer about a possible advance on pay.
FOLLOW US ON WHATSAPP HERE: Stay across all the latest in breaking news, celebrity and sport via our WhatsApp channel. No comments, no algorithm and nobody can see your private details.
links to content on ABC
9News
