The 'time bomb' that could help tackle household debt woes

For too long, whenever a story surfaced about someone experiencing financial hardship, there was a tendency to blame the victim. When the Queensland government boosted funding for financial counselling, it called the program “Better Budgeting”. Similarly, in ministerial press release after press release, financial counselling has been described as “helping people to manage their money”.

, Financial Counselling Australia found that for every five people who sought help, only three people could be assisted. Waiting lists have blown out to eight weeks or more. The longer people have to wait, the more difficult their problems are to solve and the more at risk they are of losing assets.

This is not only because of the irresponsible lending identified by the royal commission but also because, back in 2014-15, aboutfunded by banks were interest-only. Many stipulated that the mortgages would convert to principal-and-interest after five years, which is expected to add about 30 per cent to monthly repayments.

Research is also showing that financial hardship is found across the general population. More than 1 million Australians are working two jobs as they find it harder and harder to pay their bills. And aconducted by University of Melbourne academics found that two-thirds of adults feel financially insecure, with almost one in two having less than three months’ income saved.

Easy, the customer. User pays. I pay for professional financial planning each year and it has been worthwhile ROI.

How about we blame corporatists like the Age for taking average of Aussie households.

The real problem is that schools don’t properly teach financial skills and knowledge, leaving the banks with too much power over their customers.

The customer of course, should be part of their fee's. If the banks have to pay, it will only be passed down to the customers anyway. Definitely not the Tax payer. It is unfair on the people that do not need financial counseling.

The banks? They were up to no good, so they should pay for the financial counsellors needed.

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