Record numbers of Australians looking for free financial help

CASH- STRAPPED Australians seeking free financial help has hit record-high levels, including some people so desperate they cannot afford food or petrol.

Statistics from the National Debt Helpline found more than 179,400 Australians sought free financial counselling in the 2018-19 financial year, compared with 173,300 the previous year.

And the numbers phoning the free government-funded financial counselling service has soared 75 per cent since 2013-14 when 135,100 turned to it for help.

Financial Counselling Australia chief executive Fiona Guthrie said the service was “at capacity” as many Australians continued to phone up 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,” Ms Guthrie said.

“At least once a week we have someone ringing up with more than $100,000 in credit card debt.”

She 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 and more than $30.6 billion is accruing interest.

Buy now, pay later schemes have also skyrocketed in popularity, allowing customers to buy goods and pay them off in instalments at a later date.

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

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

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

She said it could be tough for consumers to call up for free financial counselling — sometimes people are too ashamed or embarrassed.

She urged people to take stock of their finances.

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

The National Debt Helpline is on 1800 007 007.