If you're struggling to make ends meet and don't know how you'll pay your next bill or unexpected expense, you are not alone.
"We're seeing people that simply just don't have enough money," says Deb Shroot, a financial counsellor of eight years based in Canberra/Ngunnawal.
"They might be working full time, they might have double income jobs, but because the cost of everything is just going up, they're having trouble."
It might be tempting to start looking at schemes like payday lending, but Ms Shroot says there might be a "really good solution out there for you that doesn't require you to source more money".
If you've got an unexpected bill to pay or large expense and you don't have the money to cover it, here's what you can do.
How do I pay my bills?
Ms Shroot says the first step is accepting you need help and support.
"It's really hard for people to reach out, there's a lot of shame in struggling and not being able to provide basics for your family," she says.
"Or the shame that you might be judged, that you don't know how to manage money, or you made some really bad decisions.
"Whereas what we often see with clients is that they just don't have enough money, or there's been a change in circumstance that they weren't able to control."
The Australian Securities and Investment Commission (ASIC) recommends contacting service providers directly to explain your circumstances.
Commissioner Alan Kirkland says they could be banks, electricity and telco services, or council rates.
"In most of those sectors, the businesses you owe money to have actually got obligations to respond if you reach out to them and say that you're in financial hardship," he says.
"What they'll often be able to do is reduce your repayments for a period of time or, give you longer to repay an amount that you owe to them.
"That's all about trying to help you to get through a period of financial hardship and back on your feet without ending up with more debt."
Natasha Janssens, a former financial planner and behavioural money coach from Canberra/Ngunnawal, says it is best to get on the front foot as soon as possible.
"Shopping around on your existing bills can also help you find some savings in your cashflow that you can put towards covering other bills," she says.
When do I call a financial counsellor?
If you are not confident having those conversations with providers, a financial counsellor can do it on your behalf.
They're skilled professionals who provides free, confidential, and independent support and advice to individuals struggling with financial difficulties.
"The easiest way to access a financial counsellor is to contact the National Debt Helpline," Ms Shroot says.
This is a free service, and the counsellor can guide you through your options as well as stop debt collectors from harassing you.
Financial literacy advocate Nicole Pedersen-McKinnon says they may also be able to negotiate a better deal for you.
"They can advocate for you with all of your credit providers and your utilities providers," she says.
"So they can actually go, 'hey, give more of a reduction than that, that's still unacceptable. They're not going to be able to stretch to that'."
What if I need food and basics?
ASIC's Moneysmart website has a list of organisations that can provide emergency relief services to help with things such as:
• meals, food parcels or food vouchers
• transport vouchers
• chemist vouchers
• clothing or furniture
• part-payment of utility bills
• help with back-to-school costs
Mr Kirkland says more than 11 million Australian's visited the website last year to get advice on how "to get back on their feet".
"It's the best source of independent financial advice and information."
For a list of emergency relief services in your state or territory, see the Department of Social Service Grant Services Directory.
Accessing Centrelink and no interest loans
If you receive Centrelink payments, you may be eligible for an advance that you pay back from your repayments over time without interest.
Mr Kirkland says if you're on a low income, you may also have access to no-interest loans of up to $3,000.
"They're available for relatively small amounts, but they can be used for things like medical costs, car repairs, household appliances, car registration, or education costs," he says.
"You do have to repay them over time, but those repayments are set at a level that you can afford, and you don't pay interest on those loans.
"The best place to find out about a no interest loan is the ASIC Moneysmart website."
Ms Pedersen-McKinnon says no-interest loans pay for items directly via an invoice rather than handing out cash.
"Because the idea of that is to get you back on your feet and to get you past that bill so that your finances are sustainable," she says.
It's an application process, and there are limited numbers, but you're eligible if you earn less than $70,000 a year before tax as a single or $100,000 before tax as a family or with a partner.
You are also eligible if you've experienced domestic or family violence in the past 10 years, or if you have a health care card and or pension card.
No-interest loans can also be an option for obtaining a rental bond or rent payments in advance, according to Mr Kirkland.
If you're homeless or in a housing crisis, your state or territory government can provide emergency temporary accommodation in places like low-cost hotels, motels and caravan parks.
Risky money lending
If you are worried about your finances, experts say schemes such as payday lending can be appealing but they advise caution.
Payday lending, according to Moneysmart, is a type of short-term loan where you borrow a small amount of money (up to $2,000) and repay it within a short time frame, typically between 16 days and one year.
Ms Janssens says the biggest risk is compounding your debt by not understanding the repayment terms and fees and charges.
"These can be extensive and can often lead people into a debt spiral," she says.
"Payday loans can also impact your ability to obtain credit in the future, such as a personal loan or a mortgage, as it signals to the lender that you may be in financial trouble and unable to repay the debt."
Ms Pedersen-McKinnon says buy now, pay later schemes can also mean people are spending money before they have it.
"I would just step away from those apps and if it helps, go back to cash."
"Because nothing drives home how much you've got to spend and where you should allocate it, like actually splitting it up in an old school envelope system."
This article contains general information only. You should consider obtaining independent professional advice in relation to your particular circumstances.
