When Centrelink Payments Are Not Enough

The cost of living continues to rise while salaries and financial benefits stay relatively flat. This inflation on everyday living is putting thousands of Australian families under serious financial stress. Those who are on a low income or collecting Centrelink payments are generally extremely savvy with money as they have learned how to do more with less.

However, living under financial hardship over an extended period will take its toll on anyone. The outcome of such pressure can be depression, anxiety, family or relationship breakdown and other negative situations.

Below are some practical options on what one can do to try and improve their financial situation when dealing with unique circumstances or when financial opportunities in their immediate area are minimal.

Double Check
Are you currently receiving all Centerlink payments that you are entitled too? Small changes in your circumstances can lead to significant changes to your payments. In addition, having a professional third party review your situation with you can also lead to great improvements.

Centrelink Calculator – Visit the different Centrelink calculators and rate estimators to see if you may be missing any additional assistance.

Financial Counsellor – Sometimes its good to get professional advice. Getting assistance from someone who knows about money as well as all the different government and non-profit assistance options available can quickly improve your situation.  A quick 5 minute confidential phone call can possibly solve money issues relatively easy – it can’t hurt.

 
Budgeting Tricks
There are so many different ways to create a budget and they will all have their own effectiveness based on the user’s goals and commitment. There are also subtle tactics or techniques within a budget that can improve cash flow immensely. Bill smoothing is a powerful way to transform your budget and eliminate any BIG bill surprises. It’s a great way to reduce the anxiety of waiting for the next Centrelink payment as you’ll be in complete control of your bills and finances.

Help with Bills
If you are finding it hard to pay for bills and you budgeting won’t be an immediate help, there are a few things you can do. Depending on the urgency of the situation you can file for Financial Hardship help. This process is essentially working with your creditors or services providers in a set process where a new affordable repayment arrangement is created. Another option is to look at what concessions may be available to help reduce payments with bills such as council rates, water and other utilities, sewage, medical and more. See what is available in your area here.

Loans or Advances
If you are dealing with a situation that requires money, there are a few loan options available if the money is used towards essential household needs. Loans provided to low income earners and those receiving Centrelink payments are generally of a lower dollar figure (up to $3000). These loans however are great for helping with unexpected circumstances as the approval criteria is much more flexible than the banks and the cost of obtaining and servicing these loans are low. Below are snippets of these responsible lending products.

 
Advanced Payment – An advanced payment is a great alternative to loans and lets most Centrelink recipients access bit of cash from future payments to help with any shortfalls between normal payments.

Centrelink Loans – There are a few non-profits that provide low or no interest loans to those on low incomes or collecting Centrelink. These loans are strictly for crucial household needs and are a great alternative to expensive payday and quick loan lenders.

For more information on Centrelink Payments and Services visit the Human Services directory here.