No room for shame in hardship

When I was 14, my Dad died suddenly after a 3 month struggle with Acute Megakaryoblastic Leukaemia. My mum, a widow at 36, was now the sole carer and provider for a 7 month old, a 3 year old and a teenager. With Dad’s death and no paid maternity leave, our family had no income.

While dealing with grief and the responsibility of children, costs from Dad’s medical treatment and funeral left Mum with debt and no money. Adding to the devastation, we now had no home as we had been living regionally in a house provided by Dad’s employer.

Hardship happens. It can happen to anyone, and it can happen fast. Hardship can completely upheave your life and when you are dealing with multiple issues – mental health, finances, relationship challenges – it’s overwhelming.

My parents were both migrants to Australia, and with English as a second language my Mum had no idea about the limited services available to her 30 years ago.

Thankfully today, there is much more support and help available for people experiencing financial hardship. What hasn’t changed though is the shame and stigma that goes with it.

While we have made inroads in recent times in openly discussing personal or previously taboo subjects such as mental health and family violence, financial hardship continues to be seen as a private issue not to be discussed. Yet many of us are experiencing financial difficulty.

Recent research from ASIC shows that 47% of Australians with debt have struggled to make repayments in the last 12 months.

Despite struggling, 42% of Australians would rather sell their belongings or assets before applying for financial hardship assistance with their lender.

Certainly, what we are seeing at the Financial Wellbeing Collective is cost-of-living making hardship more common. We have had huge increases in clients from middle and higher income household brackets using our services. Though despite its prevalence, the stigma around financial hardship continues to prevent people from accessing support.

Anxiety and stress caused by a financial situation (51%), feeling shame or embarrassment (40%) and feeling of failure (40%) are the most common emotional barriers stopping Australians seeking help. Of the clients we see presenting for financial counselling, 40% have been in financial hardship for over 12 months before reaching out. That’s a long time to carry the load.

Clients are often ashamed of their financial situation and find it hard to discuss with anyone, including family members. Yet once they engage a financial counsellor, they report immense relief from sharing what they are experiencing.

Hardship is not a choice – no one chooses to struggle. No one should feel they are a failure because of what they are experiencing. The key to change is normalising financial hardship through sharing open and honest conversations around our financial health and experiences. We also need to normalise seeking help.

Early intervention reaps the most successful outcomes and despite there being a range of free, confidential services available to people experiencing financial hardship there is a massive lack of community awareness of these services. And because we know financial hardship affects all facets of one’s life – once help is sought – our clients experience improvements in many areas, particularly their mental health.

Western Australians experiencing financial difficulty are encouraged to reach out to:
Financial Wellbeing Collective: ☎️1800 932 050
National Debt Helpline: ☎️ 1800 007 007

Helena Jakupovic is General Manager of the Financial Wellbeing Collective.
The Financial Wellbeing Collective is a not-for-profit partnership of organisations united to reduce the drivers and impacts of financial hardship in the Western Australian community.