Qlders crippled by debt resorting to desperate measures

The number of Queenslanders calling a helpline for debt assistance has increased by 40 per cent in three years, new figures show, and many of them are not who you would expect.

Families on dual incomes, the elderly missing out on medication and people needing help for the first time are inundating financial support counselling services across Queensland.

Data from the National Debt Helpline shows calls have increased by almost 40 per cent from 20,354 in 2020-21 to 28,277 in the 2023-24 financial year.

About 14.4 per cent of callers in Queensland were struggling to pay for essentials like groceries and petrol, while 23.1 per cent could not afford rent, mortgages, council rates or body corporate fees.

It comes as inflation hit 3.8 per cent for the June quarter, and Australians anxiously wait to find out whether interest rates will rise on Tuesday.

Experts say if interest rates go up, they anticipate people calling who have never picked up the phone for financial help before.

Agencies are reporting waiting lists of more than 500 people wanting to see a financial adviser with wait times varying from three to four weeks at a minimum.

The top caller locations to the National Debt Hepline in 2024 were Brisbane, Southport, Nambour, Cairns, Townsville and Toowoomba.

“We are noticing a large increase in volumes,” National Debt Helpline Queensland service leader Suzzanna Wallace said.

“And I think members of the public are experiencing troubles with money that they haven’t been through before, as prices for things keep going up, we often talk to clients who may never have reached out for any kind of assistance before and this is a first for them.”

Bills are piling up for more and more Queenslanders as the cost of living bites

Ms Wallace said people who were working full-time were coming to them having to take on extra jobs, or consider getting housemates for the first time.

“It’s a broad range of problems and we are seeing really dire situations,” she said.

“We have had people talk about being unable to pay for the bare necessities. So being unable to buy groceries and going without important things like medications that may cost a little bit more than the budget allows.”

Ms Wallace said people have felt the pinch more and more.

“I would anticipate that if more people’s mortgages do go up (this) week, that there may be people calling us who’ve not picked up the phone before, because they might already be struggling,” she said.

Financial Counsellors Association of Queensland systems and operations manager Rachael Taylor said things like mortgage stress remaining high and cost-of-living was adding to the pressures.

“It’s unprecedented, the demand, it’s just been going up and up as that data shows sort of since post-Covid times,” she said.

“In this climate with people already so stressed out with cost of living, the idea of rate going up again would be terrifying to a lot of people who are already at the limit of their affordability.”

She said more funding was needed from the government.

Queensland Council of Social Service CEO Aimee McVeigh

“The FCAQ put forward a proposal seeking more funding from the state government in regards to financial counselling that wasn’t met in the recent budget.,” she said.

“We certainly as a sector, we’re reliant on state based funding, and Queensland is the lowest state or territory in Australia per capita when it comes to financial counselling funding.”

Queensland Council of Social Service CEO Aimee McVeigh said people unable to afford the essentials were having to get support from other charities.

“I think because it’s so hard to manage a household budget right now, people are looking for additional support to enable them to do that,” she said.

“So that might mean that because they’re spending more on their rent, they don’t have enough for food. So they could be reaching out to services for support with things like food, for example, or other cost of living support.

“These are often working families, families with children, families who are literally struggling to use their wage to cover the basic costs of living.”

Communities Minister Leanne Enoch said many Queenslanders were facing cost of living pressures which is why they’ve introduced the $1000 power rebates and 20 per cent cut in rego.

“We’re also helping Queenslanders under financial stress to get support through counselling services, emergency relief, and financial literacy and resilience programs,” she said.

“We work closely with the Federal Government which is the majority funder of both Financial Counselling and Emergency Relief services, including funding for the National Debt Helpline.”