Money maydays rocket
Utility bills and credit card debt bring battlers to knees
CASH- STRAPPED Australians burdened by inflated utility bills and soaring credit card debts are flocking to financial assistance services in record numbers.
The National Debt Helpline has been inundated with households in financial distress with latest figures showing they received 170,000 calls in 2017 — the highest on record. This is a 12 per cent spike on the previous year. About 3270 calls are made to the helpline every week.
Financial Counselling Australia’s executive director Fiona Guthrie said increased monetary pressures on households had resulted in help services being flooded with calls.
“There is a clearly a really big problem with financial stress in the Australian community,’’ she said.
“The debt helpline mainly helps people with credit card debt and the second most common problem is utility bills.”
Other financial helplines have also been inundated with calls — it’s understood the Commonwealth Bank’s dedicated domestic and family violence package hotline has had to put on more staff in recent weeks due to high call volumes.
Reserve Bank data shows Australians have $52.2 billion of credit card debt and $31.6 billion accruing in interest.
While the nation’s card debt has fallen slightly in recent months, the amount still owing remains high and many cards often attract interest rates around 20 per cent.
Power prices are also blamed for many people calling for help — in 2017 electricity prices in some states rose by up to 20 per cent and added another $600 a year to household expenses.
Consumer finance expert Lisa Montgomery said despite record low interest rates, costof-living rises and increased loan balance had put “enormous pressure on the household budget”.
“More and more people are finding themselves in this position as they use credit to support essential and lifestyle costs,’’ she said.
“If you find yourself unable to meet commitments, you should call your credit provider immediately to work a solution before you go into default.”
Ms Guthrie urged Australians to refrain from paying for financial advice and instead seek free help.