Phone calls to the National Debt Helpline in Victoria increased 47 per cent compared with the same period last year.Credit:Chris Hopkins
According to the open letter,in the first six months of the year,phone calls to the National Debt Helpline in Victoria increased 47 per cent compared with the same period last year,with a growing number of middle-income earners contacting the service for the first time.
The groups,including Anglicare,the Consumer Action Law Centre and Financial Counselling Victoria,say struggling households are waiting up to three months for help managing their bills,putting them at risk of power disconnections,repossessions and homelessness.
“Financial counsellors are able to negotiate with a person’s creditors,and organise affordable payment plans,deferrals,or waivers on their behalf,” the letter says.
“Without swift intervention,not only will struggling households miss out on access to this vital support service,and deteriorate without assistance,the financial counselling workforce will also be harmed by growing levels of stress and burnout.”
One charity,South East Community Links,which provides financial counselling services in the Melbourne suburbs of Springvale,Dandenong,Cranbourne and Pakenham,said it had witnessed a 20 per cent jump in inquiries and now had waiting times of between 10 and 12 weeks for financial counsellors compared with two and three weeks in 2021.
Head of financial wellbeing Kay Dilger said the situation was a “once-in-a-generation cost of living crisis”.
When contacted byThe Age,the state government said the state’s public Financial Counselling Program – run by Consumer Affairs Victoria – had provided help to almost 19,000 Victorians in the 2022-23 financial year following a $15 million investment in the program.