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A flurry of surveys is showing a marked increase in the financial pressure consumers are feeling.
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A survey by consumer group Choice shows across-the-board increases in the costs of living is prompting 65 per cent of households to cut back to cope with the financial pressure.
The biggest concerns are with rises in the prices of electricity, petrol and food and groceries.
"Cost pressures are not evenly distributed with renters, low-income households and the unemployed most likely to be struggling," says Alan Kirkland, Choice's chief executive.
He says families with school-aged children are also among the most concerned about rising household expenses.
Kirkand says it is "worrying" that one in five people say they have lived off a credit card in the past year to get through to pay day.
The Choice survey is in accord with the findings of a survey conducted on behalf of ME Bank showing a marked fall in household confidence in coping with a financial emergency, such as a loss of income.
The lack of financial emergency preparedness is particularly marked among single parents.
Jeff Oughton, ME's consulting economist and co-author of the Household Financial Comfort Report, says the results are likely caused by weak income growth, with only a third of respondents reporting gains in household income during the past year.
There are also more people saying they have increased concerns about the job market.
Job security remained steady at 71 per cent compared with the last time the ME survey was conducted six months ago.
However, "job availability" fell nine percentage points, with 56 per cent of respondents indicating it would be difficult finding another job within two months if they became unemployed.
Renters are another group identified in the survey as finding the going tough. Oughton says that might be a reflection of the financial difficulty first-home buyers are experiencing getting into the property market.
Also, they are feeling the pinch from rising rents in many states, particularly in some of the major capital cities, he says.
Savanth Sebastian, an economist with CommSec, says there should be caution over reading too much doom and gloom into consumer confidence.
"Much is written on the machinations in consumer confidence," he says. "But if you take a longer-term perspective, confidence is only down three per cent on a year ago."
He is referring to the weekly ANZ/Roy Morgan consumer confidence rating.
"While consumers aren't jumping for joy, confidence levels are normal," Sebastian says. "Low borrowing rates, rising home prices, an improving job market and growing economy are all supporting confidence levels."
