Most mortgage holders are pinching their pennies as interest rates rise and about half have already exhausted their cost-cutting options.
Borrowers over the age of 65 were most likely to be out of ideas for managing their personal finances to afford ballooning mortgage repayments.
The findings from an AMP Bank consumer survey suggest borrowers are crumbling under the pressure of higher interest rates, despite further hikes still being on the table.
The Reserve Bank board is due to meet on Tuesday for the July cash rate decision.
The central bank has already doled out 400 basis points of increases in the latest cycle and many economists expect another for July, although most agree it will be a close call.
Three of the four major banks are anticipating a hike this month and another in August, with Commonwealth Bank economists the only ones expecting the RBA to stay on hold.
But CBA does forecast one more hike at some stage, with August the most likely time in its view.
ANZ chief economist Richard Yetsenga said the economy was responding to the interest rate hikes in line with previous tightening cycles but with the all-important exception of inflation.
"Though the May headline monthly consumer price index showed a large deceleration, the underlying measures were less encouraging," he wrote in a note.
The headline inflation number fell sharply over May, from 6.8 per cent to 5.6 per cent, but the decline was less convincing when volatile items were filtered out.
Mr Yetsenga said strong retail sales and job vacancies data released last week supported the case for another rate rise.
ANZ economists expect two more 25-basis point lifts, taking the cash rate to 4.6 per cent in August.
More rate increases will be crushing for borrowers, with the AMP Bank survey revealing a growing number of home owners worried about not meeting their repayments.
About one-third of Australian home owners were worried about coming up short on their repayments, up from 23 per cent in February.
Another rise of 25 basis points will add a further $77 a month to repayments on a $500,000 loan, according to RateCity.
This will send monthly repayments up by $1211 compared to before the RBA started hiking interest rates last year, amounting to a 52 per cent jump.
