Rate rise deepens financial stress as demand for financial counselling surges

Financial Counselling Australia (FCA) says the latest interest rate rise will intensify financial pressure on households with mortgages who are already struggling, as demand for financial counselling services continues to climb sharply.

New data from the National Debt Helpline (NDH) shows a significant increase in people seeking support, with online chats up around 45 per cent in April compared to the same time last year, and calls increasing by 21 per cent.

The Small Business Debt Helpline has also seen demand rise by around 36% per cent over the same period.

The CEO of FCA, Dr Domenique Meyrick, said the rate rise will make it even harder for people with mortgages who are already in financial difficultly.

“This interest rate rise is bad news for people who are already struggling,” Dr Meyrick said.

“Many households are already under significant strain from rising housing costs, utilities, food and fuel. This increase will make it even harder for people to keep up with mortgage repayments and other essential expenses.”

Dr Meyrick said housing and mortgage stress remains the leading issue for people seeking help, followed by credit card debt, ATO debt, utilities and personal loans.

“Fuel costs are also becoming a major issue, particularly for people in rural and remote areas,” she said.

FCA is urging people experiencing financial difficulty to seek help early.

“There is support available, and you’re not alone,” Dr Meyrick said.

“Call your bank or creditor and ask for hardship assistance. You can also speak with a financial counsellor for free, independent and confidential assistance.”

FCA is also calling for increased investment in financial counselling services to meet rising demand.

“The need for financial counselling is growing rapidly, and services are under significant pressure. Increased funding is critical to ensure people can access help when they need it and get back on track,” said Dr Meyrick

NOTE TO JOURNALISTS AND EDITORS: Please put the details of the National Debt Helpline at the end of your stories. People need to know where to seek assistance. Visit ndh.org.au for self-help and chat or call 1800 007 007.

Contact: Maura Angle 0418 334 121 [email protected]