How financial counselling can ease the burden and break the cycle

Financial struggles are an all-too-common reality for many people today, with the ever-rising cost of living and a rental crisis upon us. Financial stress is high amongst working Australians, with only one in three Australians feeling financially secure.

Money worries can impact every area of a person’s life, from relationships to mental health, and the effects can be damaging and long-lasting.

At this time of year, challenges can intensify further with the pressures and costs associated with Christmas. So today, I want to talk about how financial counselling can help to break the cycle – particularly for those feeling the pressure of our rental crisis.

A free service that’s focused on empowerment

Financial counselling is a free service offered to assist individuals and families in managing their financial situation more effectively. It involves working with a qualified counsellor who provides advice on budgeting, managing debts, negotiating with creditors, understanding rights and responsibilities, and accessing entitlements or financial relief options.

The service is not means tested and there is no judgement, just understanding and support. The primary goal is to empower individuals with the knowledge and tools they need to regain control over their finances.

Life-changing for those in need of support

The impacts of financial stress are far-reaching, with ASIC research finding that people who experience financial challenges are at least twice as likely to experience mental health issues as those who don’t.

For individuals and families struggling to make ends meet, the benefits of financial counselling can be truly life-changing.

Financial difficulties can lead to significant mental stress. A financial counsellor provides not just practical advice but also a listening ear, helping to alleviate the emotional burden associated with financial struggles.

One of the first steps in financial counselling is creating a budget that reflects the individual’s unique circumstances. This tailored approach ensures that essential expenses are covered while identifying areas to trim expenses or increase income.

In addition, financial counsellors are experienced in dealing with creditors. They may be able to help you arrange more manageable repayment plans, potentially freezing interest rates or repayments, or even settling debts for reduced amounts.

Support for tenants

In today’s rental crisis, supporting tenants is a critical pathway to avoid housing instability, which has a raft of adverse impacts for individuals and families – impacts that can last a lifetime.

VERTO’s free financial counselling service is designed to support tenants, empowering them to take control of their finances,

VERTO is an organisation that recognises the value and necessity of financial counselling for families in distress. With a team of compassionate and skilled financial counsellors, VERTO offers personalised support designed to address the specific challenges each family faces.

The service is built on a foundation of empathy, respect and confidentiality. Recognising that every family’s situation is unique, VERTO tailors its approach to meet individual needs, empowering individuals and families to navigate their financial challenges with dignity.

In these challenging economic times, the need for financial counselling cannot be overstated. For those struggling, the support of organisations like VERTO can be the lifeline that helps them weather the storm. Financial counsellors can play a pivotal role in easing the financial burden on families and guiding them towards a more secure financial future by providing expert advice, practical support and a compassionate ear.