The Salvation Army financial counsellor was this month awarded the Jan Petland scholarship for her work in financial counselling and social justice. 

Ms Garth said she had seen an increase in clients with high personal debt – sometimes into the tens of thousands of dollars.

This weekend The Salvation Army’s Red Shield Appeal will fundraise for its Ballarat services including financial counselling and emergency relief.

“I’ve had one person come to me in a very high paying, successful job at $100,000 a year. Doing well – two car loans, a personal loan, life is good and then was made redundant,” Ms Garth said.

“He’s changing his phone numbers and avoiding his creditors and having no idea where to go, what to do or even what his options are.

“He’s one example of a very typical story of success to suddenly rock bottom and no idea what to do.”

The rising cost of living was driving an increase in personal and household debt and increasing demand on financial counselling services, Ms Garth said. 

A client might wait weeks before an appointment is free.

“We’ve seen circumstances where people are either leading down into bankruptcy or putting themselves in homelessness situations because they can’t sustain the payments,” she said.

“I’ve seen a personal loans hovering at about $80,000. Sometimes it will be consolidated debt so it might be someone who’s in a good career, they might be having a car loan, a personal loan – they have the whole debt package then the chips are down and it’s the whole consolidated package, they can’t repay any of it.”

Ms Garth also sees people below the poverty line try to budget for food and rent as well as pay off personal debts.

“They can’t sustain basic living costs let alone debt repayments as well,” she said.

For financial counselling and support contact the Salvation Army on 5337 0600.

Donations to the Red Shield Appeal can be made online at www.salvationarmy.org.au or to volunteers at shopping centres and intersections on Saturday, May 26 and Sunday, May 27.