Real stories: Just asking for help is daunting for Australians in financial hardship

Australians in financial hardship are not asking their lenders for help. 47% of Australian adults with debt, the equivalent of 5.8 million people, have struggled to make repayments in the last 12 months. The top reasons for this include cost of living pressures, reduced income and unexpected expenses.

“For many Australians, the path to seeking help feels daunting, confusing, and challenging. It is concerning that people would rather sell their personal belongings or get a second job rather than seek financial hardship assistance,” said ASIC Commissioner Alan Kirkland.

“Customers in hardship are entitled under the law to request assistance. These findings should be top of mind for lenders when supporting Australians in financial hardship.

“The message for Australians experiencing financial stress is that banks or lenders have a responsibility to support customers. If you are worried about being able to make your repayments, you’re entitled to ask your bank or lender for help.

“If you aren’t happy with your bank or lender’s response, make a complaint and, if that doesn’t resolve the issue, contact the Australian Financial Complaints Authority.”

Financial First Aid free financial counselling

Financial First Aid free financial counselling and mediation services are available to people who have money troubles and live in one of the many government funded areas across Victoria. First step is to enquire online or request an appointment.

For individual stories about people with financial troubles and how Financial First Aid financial counsellors mediated for them, go to the Financial First Aid website home page and scroll down to Real Stories.