Financial counselling clients living on a growing budget deficit as cost of living continues to hurt
WA’s largest collective of financial counsellors reports its clients are operating on an average household budget deficit of $108 per fortnight.
The 2024 data from the Financial Wellbeing Collective shows the fortnightly deficit has increased 52%, up from $71 in 2023.
General Manager Helena Jakupovic says increasing costs of living means its clients’ financial position is worse than last year.
“Rising costs across the board – from utilities, to food, healthcare and of course housing – continue to have significant impacts for our clients.
“The burden of trying to survive when more money is going out than coming in, is an extremely depressing and desperate situation to be in.
“It means having to make very tough decisions just to keep the lights on and feed the children.
“Many of our financial counselling clients are turning to credit cards or buy now pay later services to pay for essentials like food and fuel.”
The Financial Wellbeing Collective reports the average fortnightly debt repayment for financial counselling clients was $480 in 2024 – a 9% increase on 2023.
“Cost of living is perpetuating the experiences of hardship in our community, with many getting stuck in a cycle of growing debt to survive.
“With rising debt and no end in sight for these cost pressures, this leaves many in a state of escalating desperation with detrimental impacts on mental health and wellbeing.
“What we need is a targeted cost of living package that offers financial assistance to those who need it most – people unable to cover the cost of basics such as housing, utilities, food and car registration.
“And we need an adequate minimum wage to support a decent standard of living for working people and their families.”
The Financial Wellbeing Collective supported over 29,000 Western Australians last financial year through its hardship crisis intervention services of financial counselling, and emergency relief and utility grant access services.
