High demand for financial counselling

Any cuts to the $20 million Federal funding for financial counselling services will have grim outcomes for
Tasmanians struggling to pay for essentials goods and services or to break free of debt.

Anglicare CEO Chris Jones said today that cuts to services would lead to an increase in bankruptcy levels
and debt recovery costs. “Every week, our counsellors meet with people who feel they’ve run out of
options. The support offered by a trained counsellor provides fresh hope – and that’s invaluable in terms
of the benefits for family relationships, mental health and well-being, and even suicide prevention,” he
said.

Financial counselling provides support that is free, independent and confidential. “People tell us that it’s
like a light at the end of the tunnel when they are feeling stressed and not sure what to do next,” said Dr
Jones. Financial counsellors explain consumer rights and responsibilities. They help people to organise
their budgets, manage debt or access useful services.

There is very high demand for this service. Anglicare provides face-to-face financial counselling in cities
and regional centres state-wide. “However, even at the current funding level, it is not uncommon for
someone in financial stress to have to wait weeks to meet with a financial counsellor,” said Dr Jones.

“The national phone helpline was introduced in response to the backlogs being experienced across the
country. That has helped, but even that is not entirely keeping up with the high demand”.

If funding cuts are announced in the Federal budget, Anglicare Tasmania will be forced to reduce services.
According to Financial Counselling Australia, a funding reduction would lead to the shutting down of the
national helpline 1800 007 007.

More than 5500 Tasmanians have been assisted by financial counsellors at Anglicare Tasmania so far this
financial year. The most common enquiries relate to electricity bills or credit/debt issues. Anglicare also
provides community education workshops.

Anglicare Tasmania has joined a national call for the Federal Government to end current funding
uncertainty and immediately make clear their plans for financial counselling funding.
Bronwen Hayes, Anglicare