Authored by Ethan Benedicto
As property values decline and loan pressures increase, South East Community Links held a “bring your bills” event in Cranbourne West.
The event, hosted in the suburb’s community center, aimed to provide guidance and assistance to individuals facing financial difficulties, from utility bills to personal expenses.
According to Kay Dilger, head of SEC L’s financial well-being, the organization decided to organize the event to make financial information more accessible to the local community.
“It’s about raising awareness in the community, and we’re doing it purposefully given the current state of the economy,” she said. “We wanted to bring together all the partners and provide direct access to financial information for more people and normalize discussions about money.”
The event saw the participation of representatives from Fines Victoria, NAB, South East Water, and the Energy and Water Ombudsman, among others.
“This is especially crucial in an area with a high cost of living, rental stress, and rising mortgage interest rates,” Ms. Dilger remarked.
Melbourne’s rental costs have reached an all-time high, according to National Shelter and SGS Economics and Planning.
However, the more pressing concern for Casey is the Reserve Bank of Australia’s increase in the cash rate to 4.35 percent.
“With many developments nearby and rising interest rates, this could be a particular issue for Casey in the coming weeks, especially for individuals with mortgages,” Ms. Dilger said.
According to CoreLogic, the 2021 ABS survey showed that 56.2 percent of Casey’s households are renters, making it one of the areas most affected by the cash rate hike in the country.
Those with variable-rate mortgages, who rely on economic fluctuations and subsequent rate changes, will face higher repayments.
Additionally, individuals who benefited from small fixed-term interest rate loans during the crisis may soon find themselves in a similar situation as their rates approach or have already passed their fixed terms.
For those in this position, seeking advice and assistance from a financial advisor or contacting their lender is recommended.
Ms. Dilger also highlighted that 18.6% of Casey households with mortgages were making loan repayments of $2,600 or more per month in 2021, according to data from idCommunity.
Energy consumption, affordability, and concessions, Centrelink benefits, tenancy rights, and debt-related inquiries were the top five concerns raised by residents during their previous event in Dandenong, as reported by Ms. Dilger.
Regarding the cash rate, Ms. Dilger emphasized that it is an essential tool for managing inflation and may have some repercussions.
However, those with lower incomes are most affected because they have less financial flexibility.
She noted, “Unfortunately, rising interest rates mean that people in areas with high mortgages bear a heavier burden,” and added, “We may likely see a divide between those who are struggling and those who are doing reasonably well.”
Ms. Dilger’s primary recommendations for event attendees included reviewing and prioritizing expenses, understanding rights regarding payment plans, and seeking advice from experts.
The focus should be on managing the cost of living and making the most of available resources, rather than the absolute amount of money.
She explained, “People’s income and wage growth haven’t kept pace with the rising cost of living,” and added, “It’s not just about budgeting; it’s about the balance between income and expenses.”
On Monday, November 27, from 11 am to 3 pm, Cardinia Shire will host another event at 24 Toomuc Valley Road, Pakenham.
For more information on financial counseling, you can contact SECL at 03 9549 5288 or email them at [email protected]. You can also reach the National Debt Helpline at 1800 007 007.
For general inquiries, you can contact SECL by emailing [email protected].