Hostname: page-component-84b7d79bbc-g78kv Total loading time: 0 Render date: 2024-07-29T12:19:48.027Z Has data issue: false hasContentIssue false
  • English
  • Français

The Impact of Financial Counselling on Alleviating Financial Stress in Low Income Households: A National Australian Empirical Study

Published online by Cambridge University Press:  15 November 2013

Nicola Brackertz
Nicola Brackertz*
Affiliation:
Swinburne Institute, Swinburne University of Technology E-mail: nbrackertz@swin.edu.au
Get access Rights & Permissions [Opens in a new window]

Abstract

In Australia financial counselling has emerged as an important component of policy responses to assist low income households and individuals in financial stress. However, the evidence on its effectiveness in alleviating or resolving debt-related issues is patchy. This article contributes much-needed empirical evidence on its impact on low income households and presents the results of a recent national study of financial counselling clients in Australia. The research findings demonstrate the complex factors contributing to financial stress and the effectiveness of financial counselling in providing positive outcomes on a range of measures, including debt resolution, financial capability and health and wellbeing, and highlight the importance of early intervention. From a policy perspective, the study points to the importance of having a mix of strategies to address financial stress in low income earners that combine approaches based on individual responsibility and models based on social justice and advocacy.

Keywords

Financial counsellingdebt counsellingsocial policyfinancial stresslow income earners
Type
Articles
Information
Social Policy and Society , Volume 13 , Issue 3 , July 2014 , pp. 389 - 407
Copyright
Copyright © Cambridge University Press 2013 

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Australian Bureau of Statistics (ABS) (2010) General Social Survey: Summary Results, http://www.ausstats.abs.gov.au/ausstats/subscriber.nsf/0/D0B6CB77DE0BF677CA25791A00824C41/$File/41590_2010.pdf (accessed 7 November 2012).Google Scholar
Australian Bureau of Statistics (ABS) (2011) ABS Census Quickstats, Canberra: ABS, http://www.censusdata.abs.gov.au/census_services/getproduct/census/2011/quickstat/0 (accessed 30 August 2012).Google Scholar
Australian Council of Social Service (ACOSS) (2012a) Poverty in Australia, Strawberry Hills, NSW: ACOSS.Google Scholar
Australian Council of Social Service (ACOSS) (2012b) Surviving Not Living: Submission to Senate Employment Committee on the Adequacy of ‘Allowance’ Payments, Strawberry Hills, NSW: ACOSS.Google Scholar
Australian Securities and Investments Commission (ASIC) (2011) National Financial Literacy Strategy, Canberra: ASIC.Google Scholar
Atkinson, A., McKay, S., Kempson, E. and Collard, S. (2006) Levels of Financial Capability in the UK: Results of a Baseline Survey, London: Financial Services Authority.Google Scholar
Balmer, N., Pleasence, P., Buck, A. and Walker, H. C. (2006) ‘Worried sick: the experience of debt problems and their relationship with health, illness and disability’, Social Policy and Society, 5, 1, 39–51.Google Scholar
bluemoon research + planning (2007) ‘Financial Counselling Program’, Melbourne: Consumer Affairs Victoria, Department of Justice.Google Scholar
Brackertz, N. (2012) I Wish I'd Known Sooner: The Impact of Financial Counselling on Debt Resolution and Personal Wellbeing, Swinburne University, Salvation Army, Melbourne.Google Scholar
Cantillon, B. and Lancker, W. V. (2013) ‘Three shortcomings of the social investment perspective’, Social Policy and Society, 12, 4, 553–64.Google Scholar
Chant Link and Associates (2004) A Report on Financial Exclusion in Australia, Melbourne: ANZ Bank.Google Scholar
Connolly, C. and Hajaj, K. (2001) Financial Services and Social Exclusion, Sydney: Financial Services Consumer Policy Centre, University of New South Wales.Google Scholar
Consumer Affairs Victoria (2006) The Report of the Consumer Credit Review, State of Victoria, Melbourne: Victorian Government.Google Scholar
Cummins, R. A., Woerner, J., Tomyn, A., Gibson, A. and Knapp, T. M. (2006) Australian Unity Wellbeing Index Survey 15, Report 15.0 Part A: The Wellbeing of Australians – Income Security, Melbourne: Australian Centre on Quality of Life, Deakin University.Google Scholar
De Vaus, D. A. (2002) Surveys in Social Research, 5th edn., St Leonards, NSW: Allen & Unwin.Google Scholar
Drentea, P. (2000) ‘Age, debt and anxiety’, Journal of Health and Social Behaviour, 41, 4, 437–50.Google Scholar
Edwards, S. (2003) In Too Deep: CAB Clients’ Experience of Debt, London: Citizens Advice.Google Scholar
Engels, B., Nissim, R. and Landvogt, K. (2009) Under Pressure: Costs of Living, Financial Hardship and Emergency Relief in Victoria, Melbourne: Victorian Council of Social Service, ER Victoria, RMIT University.Google Scholar
FaHCSIA (Department of Families, Housing, Community Services and Indigenous Affairs) (2012) Commonwealth Financial Counselling, Canberra: FaHCSIA, http://www.fahcsia.gov.au/our-responsibilities/communities-and-vulnerable-people/programs-services/commonwealth-financial-counselling-cfc (accessed 30 October 2012).Google Scholar
Fitch, C., Hamilton, S., Bassett, P. and Davey, R. (2011) ‘The relationship between personal debt and mental health: a systematic review’, Mental Health Review Journal, 16, 4, 153–66.CrossRefGoogle Scholar
Giddens, A. (1998) The Third Way: The Renewal of Social Democracy, Cambridge: Polity Press.Google Scholar
Grahame, T. and Marston, G. (2012) ‘Welfare-to-work policies and the experience of employed single mothers on income support in Australia: where are the benefits?’, Australian Social Work, 65, 1, 73–86.Google Scholar
Green, B. L., McAllister, C. L. and Tarte, J. M. (2004) ‘The strengths-based practices inventory: a tool for measuring strengths-based service delivery in early childhood and family support programs’, Families in Society: The Journal of Contemporary Social Services, 85, 3, 326–34.CrossRefGoogle Scholar
Guthrie, F. (2012) A National Perspective: Increasing Access to Financial Counselling, http://www.salvationarmy.org.au/Global/News%20and%20Media/news/2012/Fiona_Guthrie_a%20national_perspective_Financial_Counselling_12_10.pdf (accessed 25 October 2012).Google Scholar
Hinton, T. and Berthoud, R. (1988) Money Advice Services, London: Policy Studies Institute.Google Scholar
Homel, J. and Ryan, C. (2013) Welfare Agencies and the Provision of Emergency Relief in Australia, Occasional Paper No. 43, Canberra: FaHCSIA.Google Scholar
Jacoby, M. (2002) ‘Does indebtedness influence health? A preliminary enquiry’, Journal of Law, Medicine and Ethics, 30, 4, 560–71.Google Scholar
Jenson, J. and Saint-Martin, D. (2003) ‘New routes to social cohesion? Citizenship and the social investment state’, Canadian Journal of Sociology, 28, 1, 77–99.CrossRefGoogle Scholar
Jones, N., Wainwright, S. and Doling, J. (1993) Money Advice Users’ Experience, Birmingham: Department of Social Policy, University of Birmingham.Google Scholar
Kempson, E. (2002) Over-Indebtedness in Britain: A Report to the Department of Trade and Industry, London: DTI.Google Scholar
Kempson, E., Collard, S. and Moore, N. (2005) Measuring Financial Capability: An Exploratory Study, Bristol: Financial Services Authority and Personal Finance Research Centre, University of Bristol.Google Scholar
Lewis, J. and Surender, R. (eds.) (2004) Welfare State Change: Towards a Third Way?, Oxford: Oxford University Press.Google Scholar
Livingstone, C., Bruce, E., Kotnik, E. and King, S. (2009) Comparing Australian and International Systems to Address Consumer Financial Stress, Melbourne: Monash University.Google Scholar
Livingstone, C., Kotnik, E. and King, S. (2008) Comparing Australian and International Approaches to Financial Counselling Service Models, Melbourne: Monash University.Google Scholar
Mannion, R. (1992) Dealing with Debt: An Evaluation of Money Advice Services, York: Social Policy Research Institute, University of York.Google Scholar
Money Advice Trust (1999) Evaluating the Quality of Money Advice, London: Money Advice Trust.Google Scholar
Muller, P., Trier-Damgaard, M., Devnani, S. and Stonehouse, R. (2012) Debt Advice in the UK, London: London School of Economics and Money Advice Trust.Google Scholar
Nelthorpe, D. and Digney, K. (2011) The Bulk Debt Negotiation Project, Melbourne: Victorian Law Foundation.Google Scholar
Nettleton, S., Burrows, R., England, J. and Seavers, J. (1999) Losing the Family Home: Understanding the Social Consequences of Mortgage Repossession, York: York Publishing Services.Google Scholar
Orton, M. (2010) The Long-Term Impact of Debt Advice on Low Income Households, Warwick: Institute for Employment Research, University of Warwick.Google Scholar
Pentland, J. (2006) Financial Counselling: The Current and Changing Landscape, Melbourne: Financial and Consumer Rights Council.Google Scholar
Perkins, D., Nelms, L. and Smyth, P. (2004) ‘Beyond Neo-Liberalism: The Social Investment State?’, Social Policy Working Paper No. 3, Melbourne: Brotherhood of St Laurence and Centre for Public Policy.Google Scholar
Pleasence, P., Buck, A., Balmer, N. J. and Williams, K. (2007) A Helping Hand: The Impact of Debt Advice on People's Lives, London: Legal Services Commission.Google Scholar
Reading, R. and Reynolds, S. (2001) ‘Debt, social disadvantage and maternal depression’, Social Science and Medicine, 53, 4, 441–53.Google Scholar
Russell, R., Bailey, D. and Wall, L. (2011) MoneyMinded Summary Report: Featuring a Case Study of Mission Australia's Financial Literacy Program for Youth At-Risk, Melbourne: Mission Australia, RMIT University, ANZ.Google Scholar
Russell, R., Wall, L. and Doan, M. P. (2011) Evaluation of Saver Plus Past Participants, Melbourne: RMIT University.Google Scholar
Salvation Army (2013) It's Not Asking Too Much! National Economic and Social Impact Survey 2013: The Economic and Social Impact of Cost of Living Pressures on People Accessing Emergency Relief, Melbourne: Salvation Army.Google Scholar
Saunders, P., Naidoo, Y. and Griffiths, M. (2007) Towards New Indicators of Disadvantage: Deprivation and Social Exclusion in Australia, Sydney: Social Policy Research Centre, University of NSW.Google Scholar
Schetzer, L. (2007) Drowning in Debt: The Experiences of People Who Seek Assistance from Financial Counsellors, Melbourne: Department of Justice, Civil Law Policy.Google Scholar
Schetzer, L. (2008) Courting Debt: The Legal Needs of People Facing Civil Consumer Debt Problems, Melbourne: Department of Justice, Victoria.Google Scholar
Smyth, P. (2007) ‘Social Investment in Human Capital: Revisioning Australian Social Policy’, Social Policy Working Paper No. 8, Melbourne: Brotherhood of St Laurence and Centre for Public Policy.Google Scholar
Smyth, P. (2012) ‘Securing the social conditions for individual autonomy in Australia’, Australian Social Work, 65, 1, 1–5.Google Scholar
Stamp, S. (2012) ‘The impact of debt advice as a response to financial difficulties in Ireland’, Social Policy and Society, 11, 1, 93–104.Google Scholar
Stansfeld, S. A., Fuhrer, R., Shipley, M. J. and Marmot, M. G. (2002) ‘Psychological distress as a risk factor in coronary heart disease’, International Journal of Epidemiology, 38, 1, 248–55.CrossRefGoogle Scholar
Turley, C. and White, C. (2007) Assessing the Impact of Advice for People with Debt Problems, London: BMRB Social Research.Google Scholar
Turnell, A. (2012) The Signs of Safety: A Comprehensive Briefing Paper, Burswood, WA: Resolutions Consultancy.Google Scholar
Wesley Mission (2010) Making Ends Meet: Financial Stress Is Not Just About Money, Sydney: Wesley Mission.Google Scholar
Wise, S. and Wilks, S. (2012) Anglicare Victoria's Hardship Survey 2012, Melbourne: Anglicare Australia.Google Scholar