Wednesday, 08 October, 2008
ALICK O'Har, of Fairfield Consumer Credit Legal Centre, says there are people in Fairfield ``drowning in debt'' because ``they haven't learned how to swim''.
Mr. O'Har says desperate residents make appointments for financial counseling up to four weeks in advance.
And he says that often the only solutions available are Band-Aids when surgery is what is needed.
``It's not just people behind in their mortgages we're seeing,'' he said. ``It's all kinds of debt, including credit cards and personal loans, but the values of their homes and assets are dropping. The best advice we can give anyone is learn to save, even if it's only a dollar a day. The problem is that people aren't learning the basics of financial management.''
Mr. O'Har says residents often leave it so late to seek help that their only options were defending legal action from debtors, trying to stop the sheriff reclaiming their possessions, or filing for bankruptcy.
Short-term options for aid can include applying to the Housing Department or to the NSW Hardship Review Board for tax relief.
Mr. O'Har says the downturn in the economy and building industry is not only leading to a shortage of homes but also to rising unemployment, particularly in Sydney's west.
The Federal Government has several initiatives under way to tackle the housing shortage and mortgage crisis.
Fowler MP Julia Irwin this week welcomed the Government's national rental affordability scheme, which offers incentives of $8000 for each dwelling built for a period of 10 years.
``This is a major initiative which aims to build 50,000 additional rental dwellings Australia wide for over four years,'' Ms Irwin said.
``These homes will be offered for rent to eligible tenants at 20percent below market rents.''
Prospect MP Chris Bowen and Blaxland MP Jason Clare have compiled a free Debt Relief Kit for residents that can be picked up from their offices or mailed to them.
Source: http://fairfield.yourguide.com.au/
