The rise brings interest rates to a 15-year-high, a move the division’s community services program manager Alicia Bruton said could have wide-reaching impacts.
“Mortgage stress was already the number one reason why many people accessed financial counselling this year,” Ms Bruton said.
“We’re not just talking single households or pensioners; mortgage stress hits the employed, educated, couples, and even renters when the rate rise is passed on via rent hikes.
“We’re already having people come to us who we’ve never seen previously, some of who are working full-time, and have done all they can to save on other costs.
“With the interest rates now the highest they’ve been for 15 years, we’re expecting to see many new people who’ve never had to reach out for help before.”
Alongside a higher volume of clients, Ms Bruton said the charity was also dealing with increasingly challenging issues.
“The casework we’re getting is so much more complex than it was previously,” she said.
“Because the (reality of an) increased cost of living means people are simply being priced out of living.
“It’s not a matter of being able to cut out unnecessary expenses because you’re looking at basic day-to-day things which are necessary like a roof over your head, food, and medical costs.”
The predicted influx of clients is of real concern for the charity, which is already stretched thin in many areas.
“We’re still dealing with the fall-out from the October 2022 floods and the January fires,” Ms Bruton said.
“It’s going to be a high-risk season ... (and) everyone’s already on edge about what (might) happen.
“The pure risk is there’s just not enough financial counsellors in some areas (to meet demand).”
Despite her concerns, Ms Bruton stressed high-quality support was still available for anyone who needed it.
“There are lots of ways my financial counsellors help (including) providing information and advocacy on a range of issues,” she said.
“The process of linking in with a financial counsellor can help ... (people) gain an increased understanding and awareness of how best to future-proof themselves.
“We’re here to help.
“There are so many services available, and the people who work in these roles are so passionate about what they do.
“You’re not alone.”
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