Financial counselling has positive impact for those struggling with debt, study finds

Oct 17, 2012
Financial stress study

A new report commissioned by the Salvation Army and completed by a Swinburne University of Technology researcher has found that Australians under financial stress benefit from being able to access financial counselling.
The I Wish I'd Known Sooner! The impact of financial counselling on debt resolution and client wellbeing report, released in Anti-Poverty Week, was completed by Dr Nicola Brackertz, from The Swinburne Institute for Social Research.

Dr Brackertz surveyed 225 under financial stress who were accessing financial counselling services.

" and wellbeing are highly interconnected with financial capability, and I examined the value of financial counselling to clients and the importance of financial counselling," Dr Brackertz said.

"The research provides that access to financial counselling has a significant impact in supporting disadvantaged Australians with resolution of debt issues and concurrently improving their health and well-being outcomes."

The survey found:

  • 68 per cent of respondents felt their financial situation had improved after receiving financial counselling
  • 75 per cent reported improved skills in prioritising debt
  • 74 per cent felt better able to budget
The survey also found 68 per cent of those under financial stress said they were less stressed about the future after starting financial counselling, while 63 per cent reported their mental and emotional wellbeing had improved as a result of financial counselling.

Dr Brackertz said the research found that had a positive effect on those under .

"The positive effects of financial counselling are more pronounced when help is sought sooner," Dr Brackertz said.

"The research highlights that financial counselling has a positive impact for clients accessing this service, however, it cannot resolve the underpinning reality of debt and financial problems experienced by many individuals and families on constrained incomes as a result of social and economic disadvantage."

The research was part of The Salvation Army's Doorways Project, which provides a holistic, integrated and capacity building approach to delivery of emergency relief services.

Explore further: Startups should seek quality—not quantity—in partnerships, study finds

add to favorites email to friend print save as pdf

Related Stories

Who cares for the elderly?

Oct 02, 2012

Carers for the elderly are more likely to be female, aged 70, facing health risks, and under financial stress a Sydney Nursing School and Sydney Medical School study has found.

Doctors must look after their health too

Nov 12, 2008

Short term counselling followed by a modest cut in work hours may help reduce emotional exhaustion (burnout) and sick leave in doctors, according to a study published on bmj.com today.

Financial hardship common among colon cancer patients

Mar 13, 2012

(HealthDay) -- Nearly 40 percent of patients undergoing adjuvant chemotherapy for stage III colon cancer experience financial hardship, even if they have health insurance coverage, according to research published ...

Financial hardship contributes to diagnosis anxiety

Feb 08, 2010

A new analysis has found that women with medium or low levels of income are particularly susceptible to anxiety and depression after being diagnosed with the precancerous breast condition, ductal carcinoma in situ (DCIS). ...

How Australia survived the global financial crisis unscathed

Jul 10, 2012

A detailed picture of how Australia coped during the global financial crisis has been provided by the latest report from the Household Income and Labour Dynamics in Australia (HILDA) Survey, produced by the Melbourne Institute ...

Recommended for you

Insider trading study shows stronger enforcement

Oct 23, 2014

The first major study of the enforcement of Australia's insider trading laws has shown the number of insider trading cases brought by the Australian Securities and Investment Commission (ASIC) is increasing, ...

The unexpected benefits of adjustable rate mortgages

Oct 22, 2014

Using loan level data matched to consumer credit records, researchers have been able to determine that a reduction in mortgage payments of as little as $150 a month spurred a reduction in mortgage defaults and an increase ...

User comments : 0