Millions of Australians are throwing away thousands of dollars each year just by staying with their current providers. Whether it’s electricity, home loans, or health insurance, new research reveals that sticking to the same company could be a costly mistake.
The Hidden Cost of Loyalty
A study by Finder, shared exclusively with Yahoo Finance, found that 60% of Australians feel “overwhelmed” by the idea of switching providers. The biggest financial headaches come from:
- Electricity plans – 13% of Aussies find it stressful
- Home loans – 10%
- Health insurance – 8%
- Superannuation – 5%
But here’s the real kicker: the average renter could save $3,810 a year, while homeowners could pocket an extra $13,722—just by switching.
The Decision Fatigue Trap
So, why aren’t more people making the switch? Sarah Megginson, a personal finance expert at Finder, says the problem is decision fatigue.
“We’re suffering from fatigue from making way too many small decisions every day – so this extra bit of life admin leads to paralysis.”
In other words, we know switching could save us money, but the effort seems overwhelming, so we procrastinate. And that procrastination? It’s costing Australians thousands.
Providers Reward New Customers, Not Loyal Ones
Sticking with the same provider rarely pays off. In fact, businesses save the best deals for new customers. From cashback offers to gift cards and discount incentives, companies are constantly luring fresh customers—while long-term customers unknowingly overpay.
Take electricity plans as an example:
- Households that haven’t switched in a year are paying $238 more annually than those on newer deals.
- If your plan is two years old or more, you could be losing $318 per year.
And that’s just electricity. The same trend applies to home loans, insurance, and even mobile phone plans.
How to Make Switching Easy
If you’re one of the millions of Australians feeling overwhelmed, here’s the trick: break it down into small steps.
Megginson suggests setting a goal to tackle one bill at a time:
“You could tick one thing off per fortnight to make it more achievable.”
The good news? Switching providers is easier than ever—and in many cases, it takes less than 10 minutes online.
So, if you haven’t checked your bills lately, it might be time to start. The savings could be bigger than you think.
