How can older people get on top of debt?

The place to start is the National Debt Helpline website, which holds lots of information and resources.

Top 3 messages about debt management for older people

• It’s not necessarily a problem if you have some financial debt. But if you’re struggling to make repayments or feeling very stressed, you can get help to manage it.

• The National Debt Helpline is a not-for-profit, professionally backed service that helps people manage debt – including older people.

• There are lots of strategies for debt management, and the helpline’s counsellors will suggest which are best for you.

Financial debt is common now – unlike when you were younger. Many people have at least one credit card and use a loan from the bank to buy their family home or car. Split-payment credit apps, like Zip and Afterpay, ease the impact of many retail purchases. Some people even borrow money to invest (with qualified and tailored professional advice) as a way of building personal wealth for retirement.

However, having too much debt – or debt that you can’t repay – is stressful and financially damaging. It can bury you in an endless loop of repayments, and it puts relationships under pressure. For an older person, the worry is compounded because you may have limited earning capacity and less ability to pay your debt off.

If you’re caught in a debt spiral, where can you turn for non-judgemental, expert help? You could try the National Debt Helpline, which is a free initiative coordinated by Financial Counselling Australia (or FCA), the peak body for financial counsellors.

This not-for-profit service helps people of all ages tackle their debt problems. As well as a wide range of online information, the service can connect you to professional financial counsellors for debt advice to help you get back on track with your money. The counselling is free, confidential and understanding of older people’s needs and situations.

How older people feel about debt

Many older people may feel shame or embarrassment about being in debt, because when they were young, owing money was often considered a bad thing. This is something that has changed over time: having a little bit of financial debt is no longer a negative thing, socially.

However, it can be hard to shake those feelings off. And if your situation is tied to a retrenchment, systemic challenges in gaining employment, or a developing medical issue related to ageing, the emotional factor can be even more complex.

The National Debt Helpline understands this: they help lots of older people to get their debt under control. The counsellors are non-judgemental and professional – so self-critical feelings need not prevent you from getting expert advice.

Getting help from the National Debt Helpline

The place to start is the National Debt Helpline website, which holds lots of information and resources. They include:

• step-by-step guides through difficulties like paying utility bills or managing credit card debt

• statements outlining your legal rights, to help you negotiate solutions

• ideas for debt relief solutions

• advice for complex situations like domestic and family violence or natural disasters.

However, if you need more assistance, you can call 1800 007 007 and speak to a trained financial counsellor. The helpline operates between 9.30 am and 4.30 pm Monday to Friday.

The helpline counsellors are qualified professionals working in community organisations around Australia. Your counsellor will assess your situation over the phone and provide you with free advice. If necessary, they can refer you to a face-to-face financial counselling service close to you. They can also put you in touch with other services you need, such as legal advice, crisis food and accommodation help, and health services.

It’s important that you tell your counsellor everything about your situation, so they can help in the best way for you. Remember, the person you’re speaking to will be confidential and non-judgemental. If you’re dealing with extreme circumstances such as domestic and family violence, they need to know.

The National Debt Helpline and older people

FCA’s helpline coordinator, Vicki Staff, knows how valuable its advice and support can be for older people. Her first advice is: ‘Get onto it early. It’s much easier to work out solutions if you contact us early.’

Vicki recommends gathering together all the details of your debts before calling the helpline. ‘Be prepared to explain your story [to the counsellor],’ she adds, ‘as it will enable the creditor to sort something for you. Try to have a timeline of when things might improve.’

Your counsellor will have lots of suggestions for managing your debt, Vicki says, such as:

• making part payments

• requesting hardship arrangements

• pausing or temporarily reducing repayments

• arranging to pay the interest only.

‘Options for helping 60- and 70-year-olds might be different from those for a younger person, who usually has more options for getting back on their feet,’ Vicki notes.

The National Debt Helpline counsellors can even advocate and negotiate with creditors for you to put the selected debt management actions in place. They can also help you set up a budget and identify spending you could live without.

And if you have someone helping with your finances under a power of attorney, your counsellor can work with them to help you.

Stop worrying about debt

Debt can feel overwhelming, especially when you’re older, but you don’t have to struggle with it alone. With free, professional and empathetic debt advice, relief becomes possible. That advice is as close as the other end of the phone line.

Contacting the National Debt Helpline could soon set you on your way to a debt-free – or debt-comfortable – life. It costs nothing to find out!

How to contact the National Debt Helpline

Phone a counsellor: 1800 007 007 (Monday to Friday, 9.30 am to 4.30 pm)

Our live chat service which is accessible via our website (ndh.org.au) is available from 9am to 8pm, Monday to Friday. 

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The National Debt Helpline receives ongoing support and funding from the Australian Government Department of Social Services and the state governments of Victoria and New South Wales.The helpline welcomes people of all backgrounds, genders, sexual orientations and abilities.