Financial solutions outside the box
Kevin van Kuijk is a financial counsellor at Moneycare in Cairns. Kevin spoke with Salvos Online journalist SIMONE WORTHING about the services he provides, how easy it is to contact a financial counsellor and the importance of not leaving it too late.
Simone: You’ve been working with Moneycare Cairns for more than two years now. Who are your clients?
Kevin: It’s a mixed ensemble of people. Mainly those between their 30s and the
elderly. Some are referred by local agencies, some just walk through the door of our local Salvos looking for help.
The housing crisis in Cairns is bad. We hardly have any [rentals] available unless you pay six or seven hundred a week. You need a very good income to afford that type of rent.
The cost of living is catching up with a lot of the people we see, and they’re starting to experience mortgage stress. Sometimes the bank is already taking legal action towards them. Some people are falling behind in rent, their car breaks down or the washing machine stops working, there are medical issues, or they have a reduced income from their casual employment. Some people can’t absorb the rent increase when their tenancy is up for renewal.
Your options get limited when you leave it late. It’s never too early to come see us.
S: When do people contact you?
K: Often late, unfortunately. When some have been told they have to clear their arrears or sell their home after they missed the payments on their plans.
What we do see, though, is that most banks are lenient and they’re willing to think outside the box, so we can work with them and the community member to find a good solution.
The earlier people come to see us, the more options we have available to explore and proposals to put forward towards their creditors, and the more time the bank is willing to give us to work out how we can help the client move forward.
S: What holds people back from coming to see you earlier?
K: I’d say two reasons. Shame is one. I have clients who, a couple of years ago, wouldn’t have gotten into financial hardship, and now they feel shame that it’s got to this point when they believe they should be able to manage it themselves.
We all need support and guidance sometimes, but all too often, we try to do it on our own.
The other reason is that people don’t know where to go for help. They often confuse us with a financial advisor and think they have to pay.
Moneycare financial counselling is free, and it’s about helping people who are in hardship or doing it tough to find out what options are available for their situation. We can then discuss the pros and the cons with them, and they can make informed decisions around the best direction to take.
If you would like to make an appointment with one of our Financial Counselling Team, please call 1800 722 363 today.
S: What do you enjoy about your role?
K: When people come in, they usually are heavy laden, burdened with issues that are causing stress – the main ones being cost of living, personal finances and housing expenses.
To get them in and have a conversation, hear their stories and help them explore options – and then see the stress start dropping off when they begin making progress – that’s one of the most fulfilling things of being a financial counsellor.
S: Are there any particular social trends that are impacting people’s expenses?
K: Aside from the cost of living and housing crisis, my clients have often experienced domestic violence.
The other trend I notice is that people are trying to make ends meet by taking up credit products. Often, it’s the buy now, pay later products because they look deceitfully good – just a few payments spread out over time.
If you’re in a bit of financial stress, come and have a chat with a financial counsellor.
Using credit, you often spend more than you normally would. If you miss a payment, it suddenly becomes very expensive, and you find yourself caught in this debt trap. All too often clients have six or seven of these smaller but very harmful debts.
S: When is the best time to come and see a financial counsellor?
K: If you wait until the bank takes legal action or your landlord is about to evict you, you’ve left it late.
Your options get limited when you leave it late. It’s never too early to come see us. If you’re in a bit of financial stress, come and have a chat with a financial counsellor. Our service is free, confidential and non-judgmental – we are here to help.
Go to the Moneycare Toolkit on My Salvos here
