Households are increasingly delaying services like vet checks and car services and scrapping their insurance in an effort to scrimp and save.

Figures show 45 per cent of Australians have ditched pet insurance while 16 per cent have downgraded their car insurance. 

Kismet Mechanical director Sanjay Sethi said 50 per cent of his customers were delaying their car service, causing higher bills down the track.

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“Had they spent the money the money back when it was first required, it would have been a smaller bill,” Sethi said.

“The car would have been maintained with the specs and would have been roadworthy and safe.

“Now they let it go so long that other things have gone wrong too.”

Sethi said others were putting off vital safety repairs because they simply couldn’t afford them. 

“It’s the safety aspect, they’re compromising on that… so they are now cutting corners here [where] technically their car should not be on the road,” he said.

Single mum of four Janice said she was putting off paying multiple bills and most of her bills are paid late.

“Electricity is a big one. Food sometimes. Rent. Mainly food and electricity,” she said.

“I have to save up my money to get one repair done, my car has been unregistered because of it.

“I am dreading thinking of if it breaks down next. It is just going to put me back tenfold.”

Vinyard Veterinary Hospital veterinary surgeon Dr Russell Barnett said he has noticed a huge decrease in client visits. 

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“That obviously leads to increased expenses and in some cases it can mean that we occasionally lose the animals,” Barnett said.

“There are a lot of debilitating health conditions like arthritis that simply aren’t being treated and unfortunately the poor animals are the ones that are suffering.”

He said the cost of feeding animals was causing a “big influx” in people surrendering their animals to shelters.

Finder.com.au insurance expert Tim Bennett said half a million Australians have scrapped their home and health insurance.

“It’s one thing to cut back on life’s little luxuries, but then the fact that we’re seeing Australians struggle so much that they’re cutting back on the really important stuff, their health insurance, their health in general, their protection for their home, I think that’s a really grim situation to be in,” Bennett said.

Bennett said about two per cent of Australians had completely ditched their home insurance over the last 12 months, but potentially millions more were underinsured.

Similarly, while three per cent ditched their health insurance in the last year, many more have downgraded their policy.

“A lot more people are not keeping their total insurance cost up to date, leaving potentially millions of Australians underinsured,” Bennett said.

If you need debt support, contact the National Help Debtline on 1800 007 007 or Anglicare on 1300 111 278.

The Salvation Army also provides financial counselling – to make an appointment with the Financial Counselling Team, please call 1800 722 363.