Kate Perry writes on www.news.com.au:

“I’m cutting out the fun stuff, both in my life and my diet,” said one respondent.

But it’s not just fun stuff going by the wayside, other readers reported they had cut back on groceries, extra-curricular activities for their children as well as financial basics such as insurance and emergency savings.

The experience of one homeowner, whose mortgage repayments have risen by $400 a month in the past two years, seemed to sum up the experience of many other cash-strapped respondents.

“I can no longer provide luxuries to my family and shopping is tightly budgeted. My children can’t pursue outside school interests due to us not having the money to pay for it. And worst of all some basic necessicities such as home, motor and health insurance have all been cancelled to ensure the mortgage is paid month in and out.”

For some cutting back on social outings is necessary – if a little embarrassing sometimes.

“I’m not going out as much socially, and I’m making excuses ie not feeling well rather than telling friends it’s out of my budget,” another respondent said.

For others, the situation is already desperate. “There are days I don’t eat so my kids can. My husband is taking on extra work to make payments.”

Read the whole article here:

http://www.news.com.au/business/money/story/0,25479,23771467-5016110,00.html

Tags: debt, interest rates, mortgage repayments, rising interest rates