By Cam Lucadou-Wells
Senior citizen Mary was saddled with an unaffordable bank debt she didn’t ask for.
She had thought she was guarantor for her daughter’s personal loan.
But when her daughter went bankrupt, Mary discovered she was down as a co-lender.
The massive debt was transferred to the aged pensioner to pay back in fortnightly payments or else, she could lose her house and possessions.
But by a miraculous intervention, she was not only relieved of the debt.
Her repayments were refunded, and compensation was even paid out by the bank.
The miracle-worker in this case was a qualified financial counsellor at Casey North Community Information and Support Service.
“Not every outcome is this fabulous, but sometimes a great deal can be achieved,” Casey North CISS executive director Susan Magee said.
In recent years, there’s been a noticeable spike in people buckling under accumulated debt and seeking free, confidential assistance from the CISS.
In 2017, more than 800 people sought the free financial counselling service due to debt.
That figure is on track to rise again in the most recent post-Christmas, back-to-school period.
The latest Australian Bureau of Statistics figures show Casey has 87 insolvent debtors – one of the largest in Victoria.
Financial counsellors lay out options to overcome financial problems, provide tools to manage personal finances and advocate for their clients to creditors
Ms Magee stresses there’s “no magic wand” but counsellors can help make people aware of their rights.
As in Mary’s case, the financial counsellor got in touch with the bank’s hardship department – an option that many don’t know exists.
The department then deemed Mary should not have been included as a borrower under banking legislation.
“Not everyone knows what a hardship department is or how to access this great resource,” Ms Magee said.
“This is a basic for getting fair treatment when struggling to pay bills and should be offered to people when they call their telcos, utility companies and other companies where payments have become burdensome.”
Financial counsellors can help ask for a hold on debt repayments if someone loses their job or loses income due to injury.
They can negotiate a better deal for “unfair debt” and step in on your behalf when your house or car may be repossessed.
Family violence victims with “sexually transmitted debt” as a result of financial abuse can also be assisted.
“Lenders have responsibilities as do borrowers and financial counsellors are about making sure everyone is getting a ‘fair deal’.”
Sometimes however the options aren’t attractive. Hard decisions are sometimes required, Ms Magee says.
Last year, the CISS provided more than $390,000 of emergency relief to more than 4000 visitors.
It is now in the midst of a winter drive to stock up on non-perishable foods for emergency relief up to the end of the financial year.
To help, drop in items to 90-92 Victor Crescent, Narre Warren.
