by Sahar Foladi
Financial counsellors are at a breaking point in Victoria as South East Community Links joins pleas to the State Government to urgently fund more counsellors.
In an open letter to Premier Jacinta Allan, SECL and multiple financial counselling services across the state have reported “unsustainable wait times,” voicing their concerns and need for urgent relief.
The demands for assistance have skyrocketed amid rising interest rates, unaffordable rentals, soaring energy prices and costly grocery bills.
SECL’s head of financial wellbeing Kay Dilger says these combinations are “placing enormous strain, forcing a breaking point.”
“Financial counsellors are concerned that already stretched household budgets will collapse if there are further rent or mortgage increases and we won’t be there to support people to understand their options and rights when they fall behind.
“There is also concern at the impact that financial strain has on the mental health of people struggling to make ends meet.”
SECL is the largest provider in financial counselling in the municipality. At least two thirds of their clients talk about the cost-of-living pressures impacting on their ability to continue to pay bills and sustain housing.
“We know that people prioritise the roof over their head above all else. We see people cut back on essentials like clothes, and children missing out on sports or school excursions,” Ms Dilger said.
Waiting times at the free financial counselling service now stretch up to two to three months.
“If I compare it to two years ago, we had about two weeks wait to see a financial counsellor. Now unless you’re losing your home, the bank has repossessed your house or you’re being evicted, we have about a 12 week wait to see a financial counsellor,” Ms Dilger said.
“Financial counsellors could face burn out.
“Already long wait times could get longer, leaving people with fewer options when they can be seen,” she said.
The open letter, signed by 36 community organisations launched at Financial Counselling Victoria’s annual conference has urged the Premier to immediately boost workforce numbers for the next three years.
“Our financial counsellors are a resilient bunch and do their best every day for people experiencing financial challenges,” Ms Dilger said.
“It’s not easy for anyone with the lengthy wait times. We need more financial counsellors to respond to the growing financial hardship in our community.
“For this, additional investment from the Government who funds our services is needed; now and for the foreseeable future.”
More than 62 per cent of SECL clients accessing emergency relief services report mental health, cost of living, and housing stress.
Between January to June 2023, 74 per cent of clients presenting to financial counsellors indicated the cost of living and mortgage stress as the reason for their financial hardship.
The organisations recently saw the success of their “Bring Your Bills Day” initiative held for the community where avenues for assistance and information were shared.
As reported previously by Star Journal, 150 people attended the event within five hours.
The number of enquiries to SECL’s services is up by 20 per cent on last financial year.
“We are experiencing an economic crisis, and our service needs to be resourced to respond,” Ms Dilger said.
The National Debt Helpline reports a 29 per cent increase (15,404) in calls during the six months to June 2023 compared to last year.
