How financial counselling supports older Australians facing debt and hardship
Living on a low, fixed income, June and Kevin* were already carefully managing their finances when serious illness changed everything. Ongoing medical needs gradually drained their savings and superannuation, leaving the couple overwhelmed and exhausted, with little capacity to recover on their own.
As older renters in the private rental market, their financial position became increasingly precarious. By the time they contacted a financial counsellor, they were carrying multiple credit card debts totalling approximately $45,000, alongside a debt in collections from an uninsured car accident. With no remaining superannuation, limited income due to age and health, and high rental costs, there was no realistic way to increase earnings or absorb further financial shocks.
The situation was compounded by a lack of affordable housing options and long public housing waitlists. Navigating creditors, hardship programs and utility providers while managing serious illness felt impossible. Feeling trapped and fearful about what might happen next, June and Kevin reached out for financial counselling support with Sussex Street Community Legal Centre.
The focus of the financial counselling intervention was to stabilise the couple’s situation, reduce unmanageable debt, and ease ongoing cost pressures, while ensuring they were not facing the process alone. Their financial counsellor provided holistic and intensive support, advocating directly with creditors, identifying hardship options, and protecting the couple from further stress.
This included negotiating with all creditors on the clients’ behalf, submitting hardship and waiver requests, linking the couple to emergency relief and utility assistance programs, and reviewing everyday expenses to reduce monthly costs. Informal support networks were also strengthened to ensure the clients had practical and emotional support during a highly vulnerable period.
Through persistent advocacy and skilled financial counselling, the outcomes achieved were significant.
- A total of $44,931 in credit card debt was waived
- Full waiver of the car‑accident related collections debt
- $200 energy credit through the Power Assist program
- $79/month saved on phone and internet bills
Across the financial year, this case contributed to $160,144 in debt waived at Sussex Street — tangible evidence of the impact financial counselling can have when clients are supported to navigate complex financial systems.
Beyond the financial outcomes, the impact on wellbeing was profound. With debt reduced and essential costs lowered, financial stress eased and life began to feel manageable again. Stability, dignity and hope were restored during a time when recovery had felt out of reach.
This case highlights the challenges facing many older Australians today. Ageing, illness and the cost‑of‑living crisis create barriers that cannot be overcome through budgeting alone. Without targeted, skilled financial counselling and advocacy, people in similar circumstances are often left with no safe pathway forward.
Financial counselling is not just about numbers — it is about restoring wellbeing, protecting people during crisis, and helping them regain control when circumstances are at their most difficult.
*Client names have been changed for confidentiality.
If you’re feeling stuck, unsure, or need guidance on your next steps, reach out to our financial counselling service. Our counsellors offer free, independent, confidential, and non-judgemental support to help you navigate financial challenges and regain control.
