Difficult Times
At the third anniversary of the 2019-2020 Black Summer Bushfires , we are reminded of the strength, resilience, support, and compassion shown by community during such a difficult time....
Everyone is talking about the cost of living, food prices, soaring energy prices, fuel, and rent and mortgage payments that are unable to be met by many.
Financial stress is more than being unable to make ends meet. Statistics show that people with problem debt are significantly more likely to experience mental health problems. A UK survey identified that 86% of respondents to a Money and Mental Health questionnaire of nearly 5,500 people with experience of mental health problems said that their financial situation had made their mental health problems worse. (www.moneyandmentalhealth.org)
The Money and Mental Health website and research states that financial difficulties are a common cause of stress and anxiety. Stigma around debt can mean that people struggle to ask for help and may become isolated. The impact on people’s mental health can be particularly severe if they resort to cutting back on essentials, such as heating and eating, or if creditors are aggressive or insensitive when collecting debts.
Financial stress and distress affect people from all walks of life including farmers who may still be paying drought loans, young families with increasing rent or mortgage payments, those on low incomes and those who are unemployed. Many women aged 50 plus face financial hardship if they have stayed at home caring for a family and have little or no superannuation and savings, and limited job skills.
In 2019, the Australian Human Rights Commission published a background paper that said older women — those aged 55 and over — as the fastest growing cohort of homeless Australians between 2011 and 2016, increasing by 31%. It is likely this trend will continue given the ongoing shortage of affordable housing, the ageing population and the significant gap in wealth accumulation between men and women across their lifetimes. They go on to say that limited services are available for older women who are renting, working and have modest savings. The moment they are unable to work and pay their rent, they are likely to be homeless. (https://humanrights.gov.au/our-work/age-discrimination/projects/risk-homelessness-older-women)
A 1999 study concluded that It has also been found that financial stress is not confined to those on welfare. Berger and Tremblay (1999) note that for renters or homeowners who live from pay cheque-to-pay cheque, any financial crisis can lead to eviction and ultimately, homelessness.
Some articles have stated that financial stress can be caused by losing a job, problem gambling or living beyond one’s means. However, we know today that financial stress is caused the increasing high cost of living and low wages growth along with unsustainable government benefits. This leads to continued stress and worry which can have long lasting impacts on mental wellbeing.
A recently published article states that almost 1 in 3 Australians are experiencing financial stress. The economic crisis is linked to a rise in unemployment, an increase in private debt, as well as a rise in mental health problems in the general population. Households with outstanding non-mortgage credit debt report worse mental health, especially if the debt is high. Adults who live in poverty have a risk of depression twice as high as those who do not. (https://tapintosafety.com.au/the-impact-of-financial-stress-on-mental-health/)
Children also feel the impact when adults are in financial stress. A 2020 study found that 3.24 million people in Australia (13.6% of the population) live below the poverty line and 774,000 children under the age of 15 (17.7% of all children in Australia) live below the poverty line. A 2017 survey carried out by The Salvation Army found that one in five parents could not afford medical treatment for their children and one in three parents could not afford dental care for their children. More than half of the parents surveyed could not afford to pay for hobbies or after school activities for their children. They survey also found that two in five families could not afford fresh fruit and vegetables.(https://www.acoss.org.au/a-future-for-all-children/)
While there is no quick answer to the financial crisis impacting so many, there are services that can offer support and advice. Contact your GP or your Health Service if you find the stress is becoming overwhelming and causing sleeplessness, continued worry, depression or anxiety.
Anglicare has financial counselling services which are available to anyone having a hard time with money. They offer free and confidential financial information, advice and advocacy.
https://www.anglicarevic.org.au/our-services/financial-counselling/
For farmers and those who work in an agriculture-based industry, Rural Financial Counselling Service has experienced and professional Rural Financial Counsellors (RFC) available to meet with you on your farm, business premises, or any location that is suitable for you. This is a free service.
https://ruralfinancialcounselling.org.au/about-2/
The Smith Family is a charity that can help with educational costs for those families doing it tough.
https://www.thesmithfamily.com.au/
Lifeline is available for crisis support 24/7 by phoning 13 11 14 or by texting 0477 13 11 14
References:
Berger, P, S & Tremblay, K, R 1999. ‘Welfare Reform's Impact on Homelessness’, Journal of Social
Stress and the Homeless, vol.8, no.1, pp1-20.
Davidson, P., Saunders, P., Bradbury, B., Wong, M., 'Poverty in Australia 2020 - part 1: overview', 2021.
