Most mortgage holders have been pinching their pennies as interest rates rise but about half have already maxed out their options for cost-cutting.
Older borrowers, those more than 65, were the most likely to be out of options for managing their personal finances to afford ballooning mortgage repayments.
The findings from an AMP Capital consumer survey suggest borrowers are crumbling under the pressure of higher interest rates, with further tightening still 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 hikes in the latest cycle and many economists expect another increase for July, although most agree it will be a close call.
Three of the big four banks are anticipating another hike this month, 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 in its view.
ANZ chief economist Richard Yetsenga said the economy was responding to the interest rate hikes in line with previous tightening cycles 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," Mr Yetsenga 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 Capital survey revealing a growing number of home owners worried about not meeting their repayments.
Thirty-one per cent of Australian home owners were worried about coming up short on their repayments, up from 23 per cent in February.
