National Debt Helpline hits record levels of calls by cash-strapped Australians

Australians who have little or no money to afford their daily expenses are turning to free financial counselling in record numbers. FIND OUT HOW YOU CAN GET HELP.

EXCLUSIVE: Cash-strapped Australians seeking free financial help has hit record-high levels including some people so desperate they cannot afford food or petrol.

New statistics from the National Debt Helpline found more than 179,400 Australians sought free financial counselling in the 2018/19 financial year, compared to 173,300 the previous year.

And the numbers of Australians phoning up the free government-funded financial counselling service has soared by 75 per cent since 2013-14 when 135,100 turned to help.

Financial Counselling Australia’s chief executive officer Fiona Guthrie said the service was “at capacity” as many Australians continued to phone up with massive credit card debts, unpaid utilities and buy now, pay later bills.

The National Debt Helpline can be contacted on 1800 007 007.

“The really difficult calls are when people don’t have any food in their fridge, petrol in the car and electricity bills and rent is due,” she said.

“At least once a week we have someone ringing up with more than $100,000 in credit card debt.”

Ms Guthrie also said more Australians were aware of the service which had driven up demand.

The country’s debt helpline service is receiving a record number of calls from Australians in financial strife. Picture: iStock

Credit card debt has remained one of the biggest financial problems for Australians who owe $50.5 billion and more than $30.6 billion is accruing interest.

Buy now, pay later schemes such as Afterpay and Zip Pay have also skyrocketed in popularity, allowing customers to buy goods and pay them off in instalments at a later date.

Afterpay has amassed 2.7 million customers in Australia and New Zealand in just four years, while Zippay has amassed 1.3 million users.

Consumer finance expert Lisa Montgomery said there was “so many different types of credit” making it easier than ever for consumers to fall into financial strife.

“People are really struggling with the cost of utilities and also with the cost of running multiple vehicles and have the best and newest vehicles,” she said.

“We just don’t want to delay our gratification.”

She said it could be tough for consumers to call up for free financial counselling — sometimes people are too ashamed or embarrassed to ask for a helping hand.

Ms Montgomery urged people to take stock of their finances.

“Go through your transaction accounts and see where your discretional spending it out of hand,” she said.

“It literally takes an hour of your time to go back and highlight the last three to six months of things soaking your income.”

@sophieelsworth

Originally published as National Debt Helpline hits record levels of calls by cash-strapped Australians