This audio presentation examines the Reserve Bank of Australia's (RBA) projected impact of rising interest rates on Australian households, particularly those with variable-rate home loans. Listeners will learn how higher loan payments and inflation are reducing household spare cash flow, with lower-income and highly indebted borrowers facing the greatest financial strain. The discussion explores scenario analyses that estimate the percentage of households likely to experience financial stress, the role of savings buffers, and possible adjustments households may make to manage their budgets. By the end, listeners will understand the broader economic implications, including risks to household consumption, financial stability, and the housing market.