‘I felt worthless’: how Geelong mum paid off $12k debt

A Geelong mum has detailed her spiral into “horrific debt” and how she got her head above water.

Melissa* was close to $12,000 in debt, but now is almost completely debt free.

The single mother of two is among the almost 40 people who took part in Volunteering Geelong’s pilot Financial Literacy Program.

The free program aims to give Geelong residents struggling with their financial situation support to avoid reaching a crisis point.

Melissa said her financial situation before taking part in the program was “absolutely horrific”.

“I was in well over my head in horrific debt,” she said.

A literacy program by the Geelong Community Foundation is helping people avoid reaching crisis point with their money.

“I was nearing on about $12,000 worth of debt, and being a single mother of two kids, that was a lot of money that I was trying to pluck out of the sky to try and repay, but was getting absolutely nowhere with.

“I felt worthless.

“I felt incapable of being a parent, not being able to supply for my children when they needed something.”

Now, Melissa said her situation was the polar opposite.

“I’ve paid off just about everything,” she said.

“I’ve been able to buy a new car.

“I’ve been able to now give my children everything they need.

Literacy program

“My fridge and freezer are full, my house is full with everything I need.

“My heart’s now full because my kids are happy.”

The family is able to afford going out, with favourite choices being a trip to the park, and going out for dinner.

Melissa said since getting herself onto a better financial path, her overall health was improved.

“When I was in debt, my mental health was in a horrible place,” she said.

“I wasn’t taking care of myself.

“Now I’ve been able to better myself.”

The program, run by Volunteering Geelong with a $30,000 grant from the Geelong Community Foundation, involves a team of volunteers trained in financial literacy support who help participants build skills and confidence around every day money matters.

Program facilitator Vaughan Lamb said the program has received positive feedback.

“The reaction we’ve had from the people we’ve interviewed has been really uplifting to see how they can change their circumstances,” he said.

Melissa said she was able to learn valuable skills, without feeling judged.

“You don’t feel pressured to do anything, it’s all guidance,” she said.

“They don’t sit there and say ‘you have to do this’ … it’s more of a guide of ‘if you do this, this could help’.

“They shed a little light on what could help, and that... has helped me phenomenally.”

The most important information Melissa learned was that “interest is a killer”.

“That’s where everybody gets you, is with interest,” she said.

“I had outstanding debt from when I was 18 … for the past 10 years, that I didn’t realise.

“In interest, I had paid off the debt two times over, but I still had that debt sitting there.”

For more information about the program, contact 5221 1377 or [e-mail]

*name changed for privacy reasons

Originally published as ‘I felt worthless’: how Geelong mum paid off $12k debt