Robbing Peter to pay Paul: Almost 3 million Aussies access their pay ahead of time
Aussies are dipping into their paychecks early to help make ends meet, according to new research by Finder.
A Finder survey of 1,062 respondents revealed 14% of Australians – equivalent to 2.9 million people – have used a pay-on-demand service to access their pay ahead of time in the past 6 months.
Cost of living is the most cited culprit as 7% said they needed the money to pay an everyday bill, while 4% had a large one-off expense, such as a medical bill.
A further 3% wanted the money for general spending – equivalent to over 626,000 people who got a pay advance to fund things like shopping or to enjoy a night out.
Gen Z (28%) were the most likely to use a pay-on-demand service, followed by gen Y (21%) and gen X (9%).
Rebecca Pike, money expert at Finder, said many are coming up short before payday due to cost of living pressures.
"If you're struggling to make ends meet, using a pay-on-demand service can help bail you out of trouble.
"Whilst typically less expensive than traditional payday loans, you'll still have to pay a fee to access money that is rightfully yours."
Pike said these services can be a lifesaver for unexpected expenses like a medical bill or a car repair.
"But it could impact your future ability to save and if you're not careful, it can lead to a spiral of debt.
"Early access to your cash can disrupt your budget plans and make it harder to track your actual expenses.
"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."
Pike urged Aussies to consider building an emergency fund or talking to your employer about an advance if possible, to avoid service fees.
"Consider allocating a portion of each paycheck to an emergency fund.
"Even small amounts add up over time, and it can provide peace of mind knowing you have a buffer for emergencies."
| In the past 6 months, have you used a pay-on-demand service to access your pay ahead of time (e.g. Beforepay)? | |
|---|---|
| Yes, I needed the money to pay my everyday bill | 7% |
| Yes, I had a large one-off expense I needed to pay for (e.g. medical bill) | 4% |
| Yes, I wanted the money for general spending (shopping, eating out, etc) | 3% |
| No, but I have used a pay-on-demand service in the past | 6% |
| No, I have never used a pay-on-demand service | 80% |
| Source: Finder survey of 1,062 respondents, June 2024 |
Methodology
- Finder's Consumer Sentiment Tracker is a monthly recurring nationally representative survey of more than 60,000 respondents.
- Figures in this release are based on 1,062 respondents from June 2024.
- The Consumer Sentiment Tracker is owned by Finder and operated by Qualtrics, an SAP company.
- The survey has been running monthly since May 2019.
Here are some things to keep in mind before using pay-on-demand apps.
