Alicia* is in her 70s, lives alone and supplements her Age Pension with part-time work in aged care. For more than a decade, she financially supported her adult son while he experienced alcohol and other drug issues, problem gambling and mental health challenges. In doing so, she exhausted much of her savings and superannuation. After her son’s recent death, Alicia was left grieving and facing significant financial difficulties.
Alicia was referred to financial counselling by her psychologist after receiving a default notice for a debt she did not recognise. As her circumstances were explored, it became clear she had experienced years of financial abuse and coercion.
Initially seeking help about an unknown credit card debt of $9,700, further investigation revealed additional financial commitments linked to supporting her son. These included a loan secured against her home, a mobile phone contract used by her son and several credit applications she did not recognise. Despite working beyond retirement age, Alicia had only a small surplus income and felt unable to retire because of her debts. The financial stress compounded the grief she was experiencing following her son’s death.
Uniting’s financial counsellor completed a comprehensive financial assessment and reviewed Alicia’s credit history, identifying several unauthorised and unexplained debts and credit applications. The counsellor helped Alicia gather supporting evidence, including rehabilitation records, financial statements and documentation relating to her son’s death, and undertook extensive advocacy with creditors on her behalf.
Advocacy focused on demonstrating Alicia’s financial hardship, vulnerability and experience of identity misuse, coercion and economic abuse. The counsellor also assisted her to access concessions and discounts to improve her longer-term financial position and reduce household costs.
As a result, the credit card provider investigated the matter and waived that debt, the mortgage lender waived Alicia’s remaining debt on compassionate grounds and her telecommunications provider closed an account linked to her son, waiving the remaining handset debt. In total, more than $28,000 in debt was eliminated.
Financial counselling transformed Alicia’s financial situation. With reduced financial pressure and greater awareness of financial abuse, Alicia now feels more secure, optimistic and confident about her future.
*Name and image changed for privacy reasons.
