3 Signs You Might Be At Risk of Financial Distress3 Aug, 2022
If you’re able to make ends meet each week you probably wouldn’t say you are struggling financially.
But what happens when your car unexpectedly breaks down and needs a service? Or when you have to lodge a claim for unexpected flood damage? What about when you’re invited to a wedding or a dinner out with friends but know you’re struggling to buy groceries that week?
When you’re just ‘getting by’ an unexpected expense could disrupt and impact your life.
You might be one of the 1 in 4 people in Australia who are at risk of financial distress.
At CAP Australia, we define financial distress as:
• Being unable to meet your current and future financial commitments
• Having no resilience to financial shocks
• Living with feelings of insecurity, discomfort and discontent regarding your finances
When you’re in a place of financial distress, your social, emotional, and physical wellbeing can take a hit. It can even become a struggle to flourish spiritually.
Here Are 3 Signs You Might Be At Risk Of Financial Distress:
1. You’re considering moving away from your family and friends because you can no longer afford housing in the area. This puts you at risk of isolation when you need support.
2. You are starting to experience crippling anxiety that impacts your decision-making and puts strain on your relationships. For some, this can eventually cause a breakdown of a marriage or the family.
3. You’re not eating properly. The cost of groceries can add up, but if you are forgoing meals it can be detrimental to your health and have long-term complications.
While you may feel on top of your finances currently, it’s important to know if you’re vulnerable to experiencing financial distress in the future
CAP Australia has partnered with Australian churches for over 20 years, to help transform the lives of people experiencing, or at risk of, financial distress.
We use the Financial Wellbeing Scale to help people identify any problems that might cause them to struggle with their finances in the future. Awareness is one of the first steps to finding freedom from financial distress.
The test covers questions like whether you’re comfortable with your level of spending, how much money you have leftover at the end of the month and whether buying birthday presents or wedding gifts puts a strain on your budget.
CAP Australia is committed to ensuring no one in Australia faces financial distress alone. Together with our partner churches, CAP is working toward a future where hope, community and generosity abound so everyone can flourish.
Take your first step toward meeting financial commitments with confidence, taking unexpected expenses in your stride, and building a stable and secure life for yourself and your family.