Debt strife now rife

Service at capacity as record numbers of Aussies call for help

THE number of cash-strapped Australians seeking free financial help has hit a record high, with some so desperate they cannot afford food or petrol.

New statistics from the National Debt Helpline found more than 179,400 Australians sought free financial counselling in the 2018/19 financial year, compared to 173,300 the previous year.

And the number of Australians phoning the governmentfunded financial counselling service has soared by 75 per cent since 2013-14.

Financial Counselling Australia chief executive officer Fiona Guthrie said the service was “at capacity” as many Australians continued to call with massive credit card debts, unpaid utilities and buy now, pay later bills.

“The really difficult calls are when people don’t have any food in their fridge, petrol in the car, and electricity bills and rent is due,” she said. “At least once a week we have someone ringing up with more than $100,000 in credit card debt.”

Ms Guthrie also said more Australians were aware of the service, which had driven up demand.

Credit card debt has remained one of the biggest financial problems for Australians, who owe $50.5 billion with more than $30.6 billion accruing interest. Buy now, pay later schemes have also skyrocketed in popularity.

Consumer finance expert Lisa Montgomery said there were “so many different types of credit”, making it easier than ever for consumers to fall into financial strife.

“People are really struggling with the cost of utilities and also with the cost of running multiple vehicles and having the best and newest vehicles,” she said.

“We just don’t want to delay our gratification.”

She urged people stock of their finances.

“Go through your transaction accounts and see where your discretional spending it out of hand,” she said. to take