Young Aussies owed AUD $1.5 billion monthly in expenses
Data from the group spending app KttiPay reveals that Australians aged between 18 and 35 are owed approximately AUD $1.5 billion monthly in unpaid shared expenses.
The report highlighted that 58% of this demographic recall at least one instance where a shared expense was not repaid. Many young Australians are financially dependent, with 91% having to split living, travel, or leisure expenses with family and friends at least every month.
The challenges of splitting expenses often arise from the awkwardness of pursuing friends and family for repayments. Around 75% of the surveyed young Australians indicated that it is one of the biggest issues they face, and 61% mentioned that it has caused relationship tension.
Despite these challenges, many remain optimistic about the reliability of friends and family. 73% trust them to eventually repay amounts owed while acknowledging that forgetfulness can be an issue.
One in three young Australians currently owes over AUD $250 from joint expenses, and two-thirds have over AUD $100 outstanding. However, the exact figure could be higher, as 34% of respondents do not use any formal method to track shared expenses, relying instead on memory or verbal agreements.
Chasing repayments is often a lengthy process; more than half of the respondents stated that it took over two weeks to recover debts from shared expenses the last time they pursued them.
In response to these challenges, Sydney-based innovator Iain Salteri developed KttiPay. The app requires all parties to pre-pay a set amount into a communal fund, a 'ktti', from which expenses are drawn directly. This approach removes the need for awkward repayment reminders.
"Life has never been more expensive for young Australians," Salteri stated. "While splitting costs can make living, travelling, and socialising easier, losing track of shared expenses isn't just inconvenient, it's a hit to your financial future."
Young Australians frequently use shared funds for various expenses, with unpaid debts often linked to restaurant bills (39%), money loaned during social outings (36%), event tickets (26%), group presents (25%), and group holidays (22%). A significant proportion, 55%, have avoided social situations to evade the hassle of splitting costs.
KttiPay, launched in 2022, distinguishes itself from similar apps by requiring upfront payments and eliminating outstanding IOUs. Salteri affirmed, "KttiPay is on a mission to help people split bills, not relationships, by preventing debt before it starts. Rather than one person covering the cost and chasing repayments, everyone can contribute upfront so no-one feels the financial strain. In a world full of worries, managing shared expenses shouldn't be one of them."
By employing a "pre-pay to play" system, KttiPay allows groups to contribute funds to a shared account. Expenses can then be monitored and managed through a KttiPay Visa debit card, designed to foster trust and alleviate stress in financial interactions amongst peers.
Salteri added, "KttiPay isn't just about splitting costs; it's about bringing people together. By removing the awkwardness of chasing payments and the frustration of being out of pocket, it allows groups to focus on what really matters: enjoying the moment, stress-free."
