Over the last few months there have been many reports and media blitzes about energy prices and how to save on your power bills. In South Australia it has been the number one issue since the night the lights went out in South Australia and no wonder with most residents suffering unexpected increases of between $300 - $500 on their quarterly power bills. A storm so powerful it seemed to single handedly push up power prices Australia wide.
Some have seen this as a commercial opportunity to promote their products over others with their latest sales campaigns or even to try to sell you a new fridge. Whilst a new fridge may actually be a good way to save money over time, depending on the age of your current fridge, it is no wonder some people are still left wondering who is the best to turn to for some real advice. If you are looking for a comprehensive look at the issues and practical solutions to your power troubles the Government supported EnergySmart is possibly the best source of advice without the hype or sales pitch.
The basics are simple we use around:
- 40% Heating and cooling our houses
- 23% on heating water
- 14% on washing machines and driers
- 7% on lighting
- Standby Power, that's having all those blinking lights and the multitude of clocks running on our domestic appliances such as TVs and recorders we chew up around $250 a year.
Anything we do to change the amount we use for each of these areas helps to save money. Such as using cold water for washing clothes rather than hot or selecting more efficient temperature ranges for heating and cooling. Costing solar energy with a No Interest payment scheme can see us eventually get our money back over time.
EnergySmart has published a booklet and website with videos to assist you to understand and make a real difference to your power bill.
The Salvation Army's Money Care program released new data in line with Anti-Poverty week focus that reveals vulnerable Australians are drowning in debt and have less income to manage the ongoing nature of their debt.
Several changing factors over the last ten years are key to the problems people now face. Rising Housing affordability and the increased cost of living puts more pressure on the incomes of the new casual workforce that have irregular or limited hours. This effectively widens the gap between income verses expenditure of the average family budget. Almost 37% of income is now used for rent and individual debt is at a ratio of 255% ($2.55 of debt for every dollar earned).
Local Financial Councillors say that the range of people seeking financial assistance is widening. There are many families who have never been in real financial difficulty and consequently have never had a strict budget plan believing their income vs expenditure manageable. Realising all too late that their accumulated debt and escalating expenses such as power and services rising well beyond their income capacity to repay their debt.
Tony Devlin of the Salvation Army's Money Care program announced the report at the start of Anti-poverty the week. "Now more than ever we are seeing people from all walks of life seeking our help. The cross section of people is growing, and the amount of debt each person has is very high. Over the last ten years we have seen major changes to the employment landscape in conjunction with increases to the cost of living. This combination of factors is making it harder for many people to keep their heads above water".
The Salvation Army is also encouraging the public to connect with its unique financial literacy education program, “You’re the Boss”. The app is free and provides financial tips, information and other resources to help you stay on top of your money. To contact your nearest Moneycare service please visit https://salvos.org.au/moneycare or call 1800 007 007
Poverty and severe hardship affect more than a million Australians. Around the world, more than a billion people are desperately poor.
Every day there are many people living in poverty who ask themselves how they can possibly manage. What can they do to help them feed their families. How they can find shelter.
This week in South Australia there are many events to help raise the awareness of the plight of those in need and that may need help. You can catch up with a full listing of what’s happening in your area by going to the Anti-Poverty website linked below.
There are many ways in which we can help to raise the awareness of poverty and most importantly is asking ourselves what we can do to help anyone in need not just over this week but every week. Organisations such as the Salvos, St Vincent de Paul, Anglicare, St John's, ADRA, Hutt Street Centre, Food Bank, Second Bite as well as small independent charities, provide shelter, food and housing to those in need. Collectively they manage to do a lot of good but there are still many more people who are suffering and don't know where to go or what to do to get by or seeking help to manage their cost of living expenses.
The Affordable SA App helps as a guide to the services and events that can assist people with the cost of living in South Australia as well as capturing the services that can help you manage, whether they are large organisations or small groups. From Financial Counselling to low cost groceries.
Today is World Mental Health Day. Recognition and a call to action on a global scale highlighting mental health education, awareness and advocacy.
Already this morning the Prime Minister, Malcolm Turnbull has been on media talking about Mental Health and the work done by such organisations such as Beyond Blue, R U OK? and the relatively new Soldier On which specifically looks at issues for returned service people. Helping them with a range of issues including mental health and employment post service.
The links between mental health and financial difficulties is a recognised problem within the health care system. Depression and mental well being can lead to financial difficulties created by not meeting payments on time, over spending as a compensation response and lack of awareness of ongoing financial needs. In turn these financial problems can deteriorate mental health with many experiencing a sense of no way out of debt and which can develop into more serious implications such as suicide. Many health care professionals will seek assistance for mental health suffers from a Financial Counsellor to assist in breaking the cycle of financial problems.
Specific sources of financial difficulties for people with mental health problems may include:
- Debt incurred to support a drug or alcohol problem
- Increased medical expenses
- Gambling problems
- Overspending when in a manic or depressed state
- Job instability associated with episodic mental illness
- Poor money management due to paranoid thoughts, e.g. withdrawing money from the bank to keep it ‘safe’.
For more on Mental Health First Aid see https://mhfa.com.au/sites/default/files/MHFA-finan...
Financial hardship can happen to anyone. A Financial counsellor’s services are Free, confidential and independent. They are on your side and can help people deal with immediate financial problems such as the threat of disconnection and minimise the risk of future problems.
The Affordable SA Helpline can assist with managing the cost of living pressures effecting South Australians. Providing information, advice and referrals to appropriate services such as financial counselling, case work, advocacy and community education programs. It is a not-for-profit, community based service for anyone experiencing financial difficulty. Ring the Affordable SA Helpline on 1800 025 539.
Download the Affordable SA App, your mobile guide to cost of living support services throughout South Australia. Available Free on Apple and Android devices
We sometimes need to create a debt in order to get the things we need or let’s face it, the things we may want but can’t quite afford at the time. Your Bank Manager and many financial Gurus will say that as you progress in life you need to improve your credit rating in order to provide access to more borrowing. This is with a view to having the borrowing power to purchase larger things such as a house. A place to live that can also provide us with financial capital in the future. To some, owning such capital is merely a pipe dream. Without a reasonable credit rating borrowing such large amounts is reasonably hard. Or at least it should be which is at the heart of the current problems with Australia’s personal debt issues and outrageous housing costs.
So debt is OK? Debt is OK but only if it is manageable debt. That makes more sense. It’s only when we can’t repay the debt that the nightmare of long-term debt begins. What could be considered a small debt can be amplified by factors like interest or associated penalties to a point where it seems we can never pay it off and failing to meet your payments can also effect your credit rating.
Its not the stereotypical Hollywood scene of a run down, out of the way shop you walk into or some sleazy character in an old tweed jacket behind the counter wearing far too much bling giving you a potentially bad deal on a high interest loan. A potentially bad deal is available from cute furry animals or goofy Wizards or even directly via your phone. Your favourite retailer with their associated credit cards can even bring you financially undone if you can’t meet the payments or if you only ever pay the minimum amount. Debt is never a case of getting it and just moving on.
The relatively new Afterpay app sweeping across retailers may have the potential to keep the Money Bunnies quivering in their burrows and Wally wizards wasting away. Afterpay is similar to the old-fashioned lay-by system in the way it provides for several payments over time. Although there are no direct interest charges and some helpful continued borrowing prevention there are some concerns over the fees charged and penalties as well as the credit code loopholes it avoids. The fact that in only a short space of time the company’s revenue has accumulated some big profits from the penalties and fees charged to consumers unable to meet their payment options. This signals a cautious warning to the welfare agencies.
The Moneysmart website has a great range of detail about how to avoid problems with loan debt including Payday lenders and provides information on borrowing basics and a wealth of other debt issues:
https://www.moneysmart.gov.au/borrowing-and-credit
Afterpay it seems a bit too early to have identified or assessed any associated issues so like all debt options the best thing is to consider your ability to meet the repayments or if you really need to borrow at all.
As there is an app for getting into debt there is also the Affordable SA app that can help you access support to deal with debt and other cost of living issues. For certain essentials such as a fridge low-income earners can access a range of better choices such as a No Interest Free Loan, see the app for details and other great money saving services. Download the Affordable Sa app available on Apple or Google play store or visit the website at www.affordablesa.com.au to get informed or ring the Helpline on 1800 025 539
See more articles about Afterpay
ABC
http://www.abc.net.au/news/2017-09-26/afterpay-consumer-debt/8988394?section=business&smid=Page:%20ABC%20News-Facebook_Organic&WT.tsrc=Facebook_Organic&sf117017431=1
SMH
http://www.smh.com.au/money/borrowing/modern-day-layby-apps-could-be-alltoconvenient-debt-traps-20171002-gysn40.html
This winter all across South Australia families are being shocked by the high cost of electricity and utilities particularly their recent heating bill covering the coldest part of winter. Many are finding they simply cannot afford to pay.
“Last quarter like many South Australians our electricity was pretty devastating. It seemed like it was only just last week when we managed to scrape together enough to pay our last bill from the last of our savings. When another bill turned up in the mail this week my wife and I made a cuppa and nervously braced ourselves before slowly tearing open the envelope.
It’s like being hit by a high voltage. The hairs on the back of your neck stand up and you are so astounded it leaves you speechless. The bill was almost another half again from the previous one and we just stood there looking at each other. As strange as it seemed the only thing that could make its way through the static of panic in my mind was the thought of how much it would have cost to boil the jug to make the cup of tea we had forgot about and that was now cold.
We considered ourselves doing OK financially but this knocked us for six and is by far our biggest expense. And this on top of the other bills we need to pay including the Emergency Services Levy which we struggled to open last night after work”.
There are services and support that only a Financial Counsellor can provide access regarding people struggling to meet their costs for electricity and other services. Download the Affordable SA App search and share the range of services available. Ring the Helpline on 1800 025 539.
The Consumer Credit Law Centre is a FREE service that helps people to resolve consumer credit problems including debt, hardship, credit law issues involving disputes with creditors, bankruptcy, mortgage stress, inability to negotiate payment plans and conduct by creditors.
It provides access to specialist legal advice, financial counselling and legal representation in areas of credit, banking and finance. The website has listings for specific areas of help such as Motor Vehicle, Telcos, Utilities and home repossessions, going to court as well as issues related to Bad Credit History, Consumer Leases, Credit Card problems and Hardship issues.
Face to face consultations are available after booking an appointment in Adelaide, Medindie Gardens, Smithfield and Christies Beach.
Thrifty, a small independent Food provider in the Paralowie suburbs of Adelaide is closing at the end of the month, August. Although open only a few days a week it provided for stuffs and bread to local people in need.
Thrifty was part of a number of small independent community food providers across Adelaide making a difference to people's lives and has been on the Affordable SA App since 2016.
Thanks to Thrifty and Jaye for doing their part to help feed people in need.
For those seeking food in the Northern Adelaide areas check the App listings for Food the Community Inc, Heart and Soul as well as the Charities, not-for-profit organisations and Church groups.
Most people have quickly taken to manage their banking and bills online. More and more key community and government services have quickly geared up for an online strategy when dealing with customer service with the view of making these services supposedly available to all. This has been particularly good news for those who are not available to gain service during business hours or have a disability that makes mobility or transport a time consuming problem. Over the years we have seen payments streamlined for government services and we are able to gain access to information services critical in saving time instead of lengthy waits for face to face contact.
Over the last few months SACOSS, the South Australian Council of Social Service has been examining the most recent census data concerning households that are connected at home and more importantly comparing this with those groups that do not have access to the Internet at home. This study also included accessing via mobile platforms at home.
It is no surprise that the top five regions not connected are country regional areas in SA with a staggering 1 in 4 having no connection at all. Limited suppliers and higher prices for connections in the country areas makes it difficult for these people who are most in need of these online services because of distance. These results have promoted SACOSS to start lobbying the Government for a state-wide strategy to lift the level of Digital Inclusion and make it easier for those communities to connect, not just with services, but to access the benefits of social networking groups. This lack of services also imposes a large disadvantage to students in country and metro areas without connectivity as most schooling activities involve interaction via online for students to access information and to hand in work outside of school hours.
South Australia sits well behind the national average for Internet connections and it would seem that the regional areas are so disadvantaged that this digital exclusion will make another interesting topic to follow in the lead up to the state election.
Affordable SA App can assist you in gaining valuable, decision making information about the services that may benefit you regarding the cost of living, as well as provide news and event information relevant to staying in touch with community concerns and activities. Download and use the Affordable SA App as a first point of contact for these important services.