25 November 2001
CREDIT cards, personal loans, mobile phone bills, car loans, mortgages ... Australians' level of personal debt continues to be among the highest in the world.
Figures from the Reserve Bank reveal that the nation's total household debt hit $367 billion in May, compared with $331 billion the previous year. In May 1990 it was $118billion.
With pressure to spend more rather than less during the holiday season, the new year can be an especially critical time.
If you have slipped into the debt trap, do not despair. There are several agencies you can turn to for help, many offering a free service that will provide strategies and solutions to help restore some normality to your life. These are just some of the options:
Credit Helpline
This is a financial counselling hotline part of Credit Line, which is under the umbrella of the Wesley Mission.
``We give people information, counsel them and try to reassure them about where they are in relation to debt and what their rights are in consumer law," team leader Norm Hannelly said.
``Quite often people contact us if they have received a letter of demand, saying if you don't pay your debts by a certain date, legal action will commence. Depending on their levels of anxiety, that can push them to the brink."
Phone 1800 808 488.
Lifeline
You can make an appointment to see financial counsellors who are available during office hours. They will offer guidance and advice according to your financial needs. If necessary, the service will contact creditors to help work out solutions. If your problem is linked to gambling, then there are specialised counsellors in this area, too. Phone 131114.
Moneycare
This is a counselling service provided during office hours by the Salvation Army. It helps people with budget planning to work their way out of difficulty, negotiating payment of debts, bankruptcies, home loan problems, repossessions, evictions, statements of claim and dealing with financial pressure due to ill health. Phone 02 9336 3320.
Ryde Eastwood Financial Counselling Services
Volunteer financial counsellor Pamela Coleman says this service is in such high demand that there is a three-week waiting time for an appointment.
But if a person has a critical issue they can get immediate help on the phone.
``The first appointment usually lasts two hours so we can identify the underlying problems to prevent a recurrence," Coleman said. ``We do a money plan and provide options and information, and we explain the ramifications of doing nothing. But it is up to the client to choose what they will do."
The service runs a six-month course one day a week to train volunteers in financial counselling. Phone 02 9858 1377.Financial Counsellors' Association of NSW
This is a voluntary organisation made up of financial counsellors and credit advocates. Its website, designed to ensure access to information about financial problems, is available to all via the internet. There is a special section on dealing with gambling issues, and it includes sectionson where to go for help, how to manage your money, and much more. For more information, visit www.acwa.asn.au/fcan/.
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