Australians appear financially resilient, according to many of the major indicators, with indebted households finding creative ways to manage budgets. But just under the surface there are signs of financial stress everywhere, raising questions over how long people can hang on in an environment of elevated interest rates and high living costs.

Here are four charts that show the strains many people are under.

More businesses collapsing as spending falls

Australia’s major lenders recently reported modest levels of loan defaults and home repossessions, prompting upbeat commentary about the plight of households.

But late loan repayments are a lagging indicator and “one of the last places where financial stress manifests”, according to rating agency Standard & Poor’s, which means arrears figures can hide the extent of the financial pain many households are under right now.

Peter Swan, professor of banking and finance at the University of NSW, said that more forward-looking data suggested households were already under significant strain, resulting in a sharp decrease in spending that was rattling consumer-facing businesses such as cafes and restaurants.

Data from the Australian Securities and Investments Commission shows that Australia is on track to record decade-high numbers of collapsed businesses by the end of the financial year, led by the building and food services sectors.

Accommodation and food services businesses are collapsing at more than double the rate than they were two years ago, according to Asic.

“I should think there is certainly a lot of pressure at the moment in terms of reductions in discretionary expenditure,” Swan said.

“People aren’t eating out as much and having one course, not three. They’re not buying luxurious wines with dinner and so on.”

Rising inequality

Growing angst about generational wealth inequality is linked to the rise in asset prices enjoyed by older households that has left younger cohorts behind, according to AMP.

The financial firm notes this is mostly the result of good luck due to a decades-long decline in interest rates that has lifted equities and home prices. Younger generations now also face a chronic housing shortage.

“High wealth inequality is an issue because if it dampens living standards across generations it can cause resentment and social instability,” Diana Mousina, AMP’s deputy chief economist, said.

Financial data cited by AMP shows that people aged 55 and over are increasing their spending and savings in a cost-of-living crisis. Those who own homes, debt free, tend to benefit from the current economic cycle given they receive higher deposit rates.

In contrast, savings levels are being depleted for younger generations even as they cut their spending, which is difficult to do when prices for essentials, including food, housing and utilities, are rising.

Affluent stress

More than a third of Australians who earn six figures are living paycheque to paycheque, with less than a month’s worth of their salary saved, according to Finder.

Sarah Megginson, Finder’s personal finance spokesperson, said even relatively well-off Australian households were now under significant financial pressure.

“Australians have taken extreme measures to reduce their expenses, yet they still have very little left over at the end of the month,” she said.

“There’s little wriggle room even for double-income households, with six figures barely enough to cover housing, food and everyday bills.”

Historically, financial distress has been triggered by a major event such as a health issue or job loss.

Now, elevated interest rates and a relentless rise in living costs are forcing relatively affluent Australians to take drastic measures, such as selling the family home.

About 40% of those surveyed by Finder with a household income of more than $100,000 said they could not live off their savings for more than one month.

Debt struggles

Almost half of Australian adults with debt, the equivalent of 5.8 million people, are struggling to make repayments, according to research released by the corporate regulator.

Many of those same people say they would not seek hardship assistance from their bank or lender due in part to “emotional barriers” such as feeling ashamed or embarrassed. Some indebted households choose to sell assets or find additional work to make repayments, the Australian Securities and Investments Commission found.

“It is concerning that people would rather sell their personal belongings or get a second job rather than seek financial hardship assistance,” the Asic commissioner, Alan Kirkland, said.

“Customers in hardship are entitled under the law to request assistance.”

Lenders are required to consider altering loan obligations, such as deferring payments, after receiving a hardship request.

Almost all of those surveyed who experienced financial hardship experienced negative side effects, including stress or anxiety, loss of sleep or a decline in physical health or appearance, according to the regulator.