Moneycare is a free and confidential financial counselling service. Photos: Supplied.
The Salvation Army’s financial counsellors are in high demand as people of all ages and backgrounds struggle to make ends meet.
The organisation’s free and confidential financial counselling service Moneycare supports anyone who is looking for help to budget their money or wanting to improve their financial situation.
It is there for people feeling overwhelmed by debt, affected by a natural disaster or other financial crisis, or who want tips to manage the rising cost of living.
Emily Seiler has worked as a financial counsellor for Moneycare since 2022. She is based in Canberra and travels as far as Cooma and Batemans Bay. Moneycare offers financial counselling nationally, including by phone for remote areas.
“Our service is always in high demand and we are booked out a lot at the moment,” Ms Seiler said.
“Currently a lot of the problems are around the impact of higher interests on the family budget and fuel costs.”
Ms Seiler said people in financial distress needed to realise they were not alone. They should not panic, take a breath and know there are things they can do to help themselves.
Next, understand where their money is going. “Having awareness of your essential expenses and what you can and cannot change is the first step,” she said.
Moneycare financial counsellor Emily Seiler.
“It is always good to communicate with your creditors and utility providers.” Ask them what support is available. There are different requirements for those organisations to provide some hardship relief.
“Sometimes people don’t think they have any options and that they are on their own, but that isn’t the case,” she said.
Once people understand where their money is going and what they can afford, they should develop a budget.
“The tricky thing is prioritising and knowing what to pay first,” Ms Seiler said.
“A roof over your head, food on the table and power to cook it. Rent and mortgages are usually the highest priority, along with food and medication.”
Other options include pulling back spending on a particular activity, simple swaps at the supermarket and using less electricity.
“Options range from simple, more flexible expenses within people’s control to bigger decisions like what transport options look like and exploring options for cheaper accommodation,” Ms Seiler said.
A common mistake is using buy now, pay later products to pay for everyday essentials. Moneycare encourages people to reach out to community organisations that provide food and clothing rather than go into debt.
Financial counsellors can help people already using those products to understand what options they have to manage ongoing expenses and resolve the debt.
When people are under stress and they panic, they may choose products with less favourable terms.
“It is very important to read contracts and understand the fees and interest rates,” Ms Seiler said.
“Even people with a good understanding of their finances may not review their decisions as critically as they usually would if they are under stress.”
The Salvation Army started Moneycare more than 40 years ago because it saw the need in the community and understood it was important for people to have financial counselling support.
The fastest way to get in touch with a financial counsellor is through the National Debt Helpline. Moneycare’s website has financial tips and other financial resources.
