An additional $10 million will be poured into financial counselling services for families facing mortgage stress and cost of living pressures, the federal government says.
Families Minister Jenny Macklin today announced the money would be given to 41 community and local government organisations across Australia so they could provide free financial counselling in high need areas.
The money would be delivered over the next four years.
"In NSW alone, in the last year there were just under 300,000 families or individuals who were helped by financial counsellors," Ms Macklin told reporters in Sydney.
Organisations benefiting from the financial assistance would include Wesley Mission and The Smith Family.
Jason Clare, federal MP for the south-western Sydney seat of Blaxland, which takes in Cabramatta, Fairfield, Bass Hill and Greenacre, said his electorate was "the mortgage stress capital of Australia."
"Last year 300 families in Blaxland lost their homes," he said.
Mr Clare said the biggest mistake people made was waiting too long to get help.
"People need to know there is free and independent advice out there," he said.
"You don't need someone to sell you a product which is going to put you into a worse situation."
Wesley Mission CEO Reverend Keith Garner said for every one of the ten consecutive interest rate rises in the past, there had been an increase in the number of people seeking help from the organisation.
"There isn't a stigma with going to a financial counsellor," he said.
"There are homes all around Australia with enormous mortgages with hardly any furniture," he said.
Wesley Mission counsellor Wayne Warburton said around half of his clients seeking help for mortgage stress were suffering clinical depression.
"It effects mental health. It breaks up relationships. People think about suicide," he said.
For people with schizophrenia and bi-polar disorder, such stress "is the sort of stress that can bring on a psychotic disorder," Mr Warburton warned.
Wendy Luckett, also a financial counsellor with Wesley Mission, added she had noticed an increase in clients with gambling addictions.
"It's a coping mechanism for people dealing with feelings of being a failure," she said.
