Financial stress can affect your mental health, relationships, physical wellbeing and work – and it can happen at any income. Here’s how to take the first step and where to get free help.
You know the feeling when there’s a bill sitting unopened in your inbox because looking at it will make your anxiety blow up into full-on panic?
Or maybe you’ve checked your bank balance five times today – just like you did yesterday and the day before – mentally shuffled the same payments around, and still can’t see how everything is going to get paid.
Worrying about money from time to time is normal. Financial stress is different.
Steffany Woolford from the South Australian Financial Counsellors Association says it’s when those worries become persistent, rather than passing once a bill is paid or a tight week is over.
“It’s not just something that happens to people on low incomes,” Steffany says. “Financial stress can happen to anybody. If your expenses are more than your income and you can’t see a path forward, that stress starts building.”
And plenty of Australians are experiencing it. ASIC research found 47 per cent of Australian adults with debt – equivalent to about 5.8 million people – had struggled to make repayments in the previous 12 months.
It’s not just about money
Financial stress can affect your mental health, physical wellbeing, sleep, concentration, relationships and ability to make decisions.
“When financial stress becomes persistent, it can start to affect everything,” Steffany says. “You’re anxious, you’re overwhelmed, and it can become much harder to think clearly and deal with what’s in front of you.”
It can also become a vicious cycle: the more overwhelmed you feel, the harder it can be to make decisions, answer calls or tackle paperwork, which can make the financial problem worse.
Sometimes illness, relationship breakdown, job loss or an unexpected expense – such as a medical bill, car repair or emergency vet visit – can knock over a budget that had been working.
“You might have everything running fine and then suddenly there’s an essential expense you hadn’t planned for,” Steffany says.
With housing, groceries, energy and other everyday costs rising, she says financial counsellors are seeing more people asking for help – including people from a broader range of incomes.
Why money problems can feel so shameful – but shouldn’t
If you’re struggling financially, it’s easy to turn the problem inwards and start wondering why you can’t manage it better, or how you ended up here.
“It can make people feel like a failure,” Steffany says.
That feeling is common. In the ASIC research, 40 per cent of Australians surveyed identified shame or embarrassment as a potential barrier to seeking financial hardship help, while the same proportion nominated feeling like a failure.
Financial stress can happen to anyone, but money is often tied up with ideas about success, independence and being able to provide for yourself or your family.
“There can be a real stigma around not having enough money,” Steffany says. “People can feel embarrassed or ashamed, even when there are much bigger things happening outside their control.”
Appearances can be misleading, too.
“You can look at someone and think they’re doing really well because they’ve got the car, the house and all the things. But you don’t know what debt is sitting behind that.”
And if talking to friends or family feels too exposing, you don’t have to. The National Debt Helpline lets you speak confidentially to a financial counsellor over the phone or online.
“Having someone in your corner can make such a difference. You’re not alone, and there are always options.”
The hardest step might be the first one
When dealing with money makes you anxious, avoiding it can feel easier in the moment – leaving the bills unopened, not answering the phone and telling yourself you’ll deal with it tomorrow. Then tomorrow can easily turn into weeks.
“A lot of people come to us when they’re already in crisis because they’ve been too scared or overwhelmed to deal with it earlier,” Steffany says.
“They might have ignored bills or calls from creditors, or used credit cards, loans or Buy Now Pay Later to try to get through. It’s understandable, but it just compounds the problem into something bigger.”
That’s why her main message is simple: get in early.
“The earlier you do something about it, the better,” she says. “There are usually more options available before it gets to crisis point.”
Start by writing down what money is coming in, what has to go out and anything you’re behind on. Our beginner’s budgeting guide can help if you need somewhere to start.
“As much as writing it all down might make you anxious, it helps to know exactly where you are.”
The next step is acting on that information.
“The key thing is to communicate,” Steffany says. “Ring the bank, ring the electricity company, ask for the hardship team and tell them what’s going on. Then you can work out payment plans with them.”
If that still feels too overwhelming, you don’t have to tackle it alone.
“If you still feel like, ‘I’m too anxious to be able to do that’, get in touch with a financial counsellor.”
What does a financial counsellor actually do?
Financial counselling is free, independent and confidential.
And you don’t need to be bankrupt, facing court action or thousands of dollars in debt.
“You can come to a financial counsellor because you can’t pay one electricity bill,” Steffany says. “You don’t have to wait until things are really bad.”
A financial counsellor can help you work out your overall financial position, prioritise debts and bills, check whether you’re eligible for concessions or grants, apply for hardship arrangements and negotiate with banks, lenders, utilities and other creditors.
“Our aim is actually not to have clients forever,” Steffany says. “We want people to understand their options and feel empowered with the knowledge and confidence to advocate for themselves next time.”
“We can explain what your options are and advocate with you, but ultimately it’s your money and your choice – you are always in control of decisions.”
What a financial counsellor can’t do
A financial counsellor isn’t the same thing as a financial adviser. They won’t recommend investments or give personalised advice about financial products.
They’re also not a psychologist or therapeutic counsellor.
“If someone comes in and we can see they’re really anxious or depressed, or they tell us there are relationship or other issues going on, we can talk to them about getting extra support,” Steffany says.
That can include a referral to a GP, counsellor or another appropriate service, with the client’s consent.
You can find a free financial counsellor through SAFCA or the Affordable SA website.
You can also call the National Debt Helpline on 1800 007 007 or use its online chat service for free, confidential financial counselling.
Aboriginal and Torres Strait Islander people can contact Mob Strong Debt Help on 1800 808 488.
