Wealth tracker records 200% increase in debt on its platform

author-avatar By on July 28, 2020
Wealth tracker records 200% increase in debt on its platform

Photo by Melissa Walker Horn on Unsplash

Wealth management platform Myprosperity has seen a 200% increase of debt recorded on its platform since the start of the year.

As more Australians are having conversations about their finances during the COVID-19 pandemic, Myprosperity now tracks $12 billion worth of debt on its platform, with an 80% increase in credit card accounts added since late 2019.

Used by more than 35,000 households in Australia, the Myprosperity portal also tracks more than $63 billion in assets. 

Mypropserity founder Peter McCarthy said there's growing concern over debt management.

"People are seeing the need to keep on top of their money during these tough times," he said.

“For households, we’ve seen a significant spike in requests around assistance in financial management, retirement and estate planning, highlighting the increase in concern around financial health.

"These troubling times suggest people are looking for advice to help stem the loss and shore up their financial future.”

Need somewhere to store cash and earn interest? The table below features introductory savings accounts with some of the highest interest rates on the market.

Provider
Total
interest
rate p.a.
Intro
interest
rate p.a.
Intro
term
Base
interest
rate p.a.
 
Online Saver
1.55% 1.20% 4 months 0.35% Go to site
2.00% 1.45% 4 months 0.55% More details
1.90% 1.10% 4 months 0.80% More details
1.50% 1.35% 4 months 0.15% More details
1.50% 0.15% 4 months 0.35% More details

*Data accurate as at 01 October 2020. Rates based on a savings balance of $10,000. Sorted by total interest rate. Refer to providers' websites for bonus rate conditions. Note that the base rate will apply once the introductory term has passed.

Tim Munro, founder of Brisbane-based accounting and advisory firm Change Accountants, said that after COVID-19 hit, the business was inundated with requests from clients seeking help with their finances, from applying for Jobkeeper and Jobseeker to drawing up weekly or monthly cashflows to help them get through. 

"It's been a really busy and challenging time," Mr Munro said. 

"Technology has played a vital role in enabling us to engage with, and undertake reviews of many more clients than would otherwise have been possible in the traditional face-to-face world."

Myprosperity has also found the use of online forms, such as digital fact finds, tax checklists, and onboarding forms, has increased by 500% since December 2019.

'Worst is yet to come' with COVID-19's shock on personal finances

A recent survey by data analytics firm JD Power found 39% of respondents felt the worst is yet to come when it came to their finances and COVID-19, compared to 35% two months ago.

A third also expected their financial situation to be worse for the next six to 12 months.

A quarter of the 1,957 respondents said their personal financial situation has been 'devastated' or 'severely hurt' as a result of social restrictions.

Two thirds have also been negatively affected across all income bands, while two thirds also support the extension of JobKeeper and JobSeeker.

Thirteen per cent have also recorded applying to withdraw their super early.

More than a fifth of respondents also delayed purchase of a new car, with new car sales having experienced 27 consecutive months of decline.

JD Power surveyed respondents from 24 June to 13 July 2020.


Latest Articles

author-avatar
Harrison joined Savings in 2020. He is a journalist with more than four years of experience, with previous stints at News Corp and financial comparison site Canstar. With a keen interest in personal finance, Harrison is passionate about helping consumers make more informed financial decisions.

Collections:

Get free insights & tips monthly

By subscribing you agree to the Savings Privacy Policy

Loading data please wait...

{{returnData.productName}}

Overview

Current Rate

{{returnData.currentRate | percentage:2}}

Comparison Rate*

{{returnData.comparisonRate | percentage:2}}

Rate Type

{{returnData.rateType}}

Advertised Rate

{{returnData.advertisedInterestRate}}

Comparison Rate*

{{returnData.comparisonRate}}

Monthly Repayment

{{returnData.monthlyRepayment}}

Interest Type

{{returnData.interestType}}

Total Interest Rate

{{returnData.totalInterestRate | percentage:2}}

Base Interest Rate

{{returnData.baseInterestRate | percentage:2}}

Bonus Interest Rate

{{returnData.bonusInterestRate | percentage:2}}

Total Interest Rate

{{returnData.totalInterestRate | percentage:2}}

Introductory Rate

{{returnData.introductoryRate | percentage:2}}

Introductory Term

{{returnData.introductoryTerm}}

Base Interest Rate

{{returnData.baseInterestRate | percentage:2}}

Term

{{returnData.term}}

Advertised Interest Rate

{{returnData.advertisedInterestRate | percentage:2}}

Interest Frequency

{{returnData.interestFrequency}}


Fees and Features

Ongoing Annualised Fee

{{returnData.annualFee}}

Upfront Fee

{{returnData.upfrontFee}}

Offset Account

Redraw

Principal & Interest

Interest Only

N/A{{returnData.interestOnly}}

Max loan to value ratio (LVR)

{{returnData.maxLVR | percentage:0}}

Lump sum repayments

N/A

Additional repayments

Maximum Loan Term

{{returnData.maximumLoanTerm}}

Upfront Fee

${{returnData.upfrontFee}}

Ongoing Monthly Fee

{{returnData.ongoingFees}}

Early Repayment Fee Applies

N/A

Vehicle Types

{{returnData.vehicleType}}

Maximum Vehicle Age

{{returnData.maximumVehicleAge}}

Pre Approval Available

N/A

Online Application

N/A

Account Keeping Fee

{{returnData.accountKeepingFee}}

Minimum Monthly Deposit

{{returnData.minMonthlyDeposit}}

Linked Account Required

N/A

Interest Calculated

{{returnData.interestCalculated}}

Interest Paid

{{returnData.interestPaid}}

Online Application

N/A

ATM

N/A

EFTPOS

N/A

Account Keeping Fee

{{returnData.accountKeepingFee}}

Minimum Monthly Deposit

{{returnData.minMonthlyDeposit}}

Linked Account Required

N/A

Interest Calculated

{{returnData.interestCalculated}}

Interest Paid

{{returnData.interestPaid}}

Online Application

N/A

ATM

N/A

EFTPOS

N/A

Minimum Deposit

{{returnData.minDeposit | currency : '$' : 0}}

Upfront Fees

{{returnData.upfrontFee | currency : '$' : 0}}

Annual Fees

{{returnData.annualFee | currency : '$' : 0}}

Notice Period to Withdraw

{{returnData.noticePeriodToWithdraw}}

Online Application

N/A

Automatic Rollover

N/A

Maturity Alert

N/A