Need Emergency Financial Assistance? These Resources Can Help
In an ideal world, we’d never need emergency financial assistance, because every one of us would have at least six months of living expenses in an emergency fund to cover our rent or mortgage, food, and other necessary expenses.
In reality, even when we do save for a rainy day, sometimes the deluge is so strong it can overwhelm us. As emergency expenses drain our savings, we may find ourselves devastated and wondering how we can possibly recover.
Fortunately, resources are available for individuals and families who need emergency financial assistance. We’ve put together a list of those resources here, including emergency fundraising on our site.
In an ideal world, we’d never need urgent financial assistance. This is because every one of us would have at least three months of living expenses in an emergency fund to cover our rent or mortgage, food, and other necessary costs.
In reality, approximately three million people in Australia live below the poverty line. Worryingly, some of the hardest-hit members of society are children and sole-parent families, with one in seven children under 17 living in poverty and over a quarter of single parents. This makes saving for an emergency fund nearly impossible for many households.
Fortunately, resources are available for individuals and families who need emergency financial assistance. We’ve put together a list of those resources here, including emergency fundraising on our site.
How to find emergency financial assistance
Australians often pride themselves on their ability to weather any storm. However, this isn’t always possible, especially for the 9% of Australians who spend much more than the income they receive, according to the ME Bank.
The same report found that 20% of households whose financial situation had worsened in the past six months listed the cost of necessities as the primary reason.
If being able to afford the basics is challenging, then you may quickly find yourself in debt should an emergency arise. Sure, you can turn to cash advances or credit cards — but these have downstream financial implications that can often set you up for more financial trouble. Ultimately, high interest rates and debt burdens only diminish your ability to handle financial shocks.
To deal effectively with your emergency, gain access to emergency financial assistance, and bounce back from any financial stumbles, follow these four key steps.
1. Review your financial situation objectively
Look at your situation from an objective point of view and try to think rationally about your next steps. If you’re still unsure what to do, get advice from someone who’s dealt successfully with a financial emergency like yours — perhaps a friend, family member, or colleague.
2. Know your priorities
While you probably prioritise your spending already, you’ll need to re-work that based on the emergency situation at hand. It may be time to tighten the belt. Go through your budget item by item looking for ways you can cut expenses to an absolute minimum. Small cuts add up. Does your new budget reflect your new priorities?
3. Spend only on essentials
Your reprioritised budget can give you a clearer view of what you need and don’t need in your life. Spend only on necessities such as food, shelter, electricity, counselling, etc. It all adds up, so eliminating things that may seem like trivial expenses can actually have a huge impact in the end.
Don’t spend money on things you don’t need until you’re out of your financial emergency. You may also need to hit pause on non-crucial payments to improve short-term cash flow — remember that many providers will offer this as a relief measure for you.
H3: 4. Ask for help
Most importantly, reach out to others when you’re in this situation. It’s healthy to ask for help when you need it, especially in instances where you can’t face your expenses alone. Though many in your community of friends and family may not be able to offer financial hardship assistance, they could possibly support you in other ways.
Government initiatives for emergency financial assistance
Fortunately, there are government initiatives that help to support Australians who require urgent financial assistance. Offering a diverse range of vital services, these initiatives aim to help individuals and families suffering financial hardship and get them back on their feet.
Moneysmart
Moneysmart is an initiative of the Australian Securities and Investment Commission (ASIC), which largely regulates Australia’s financial industry. It’s committed to helping Australians of all ages and backgrounds to better their financial wellbeing and take control of their money.
This is done through consumer education, using tools and tips on everything from saving and investing to debt consolidation and reduction.
Australian Financial Complaints Authority
The Australian Financial Complaints Authority (AFCA) offers an impartial and independent dispute resolution service for financial services. It exists to help consumers and small businesses reach agreements with financial firms about how to resolve their complaints, including awarding compensation for losses suffered due to error or misconduct — this can be huge if there has been wrongdoing on the part of the other party.
A list of industry ombudsmen and dispute resolution bodies can be found on the Australian Competition and Consumer Commission website.
In addition, you can speak to Services Australia for counselling support, including gaining access to a social worker who can give you personalised help. If you’re a rural small business, speak to the Rural Financial Counselling Service (RFCS), who can help you if you have been affected by drought, flood, or COVID-19.
Nonprofits offering emergency financial assistance
Alternatively, you can also seek financial assistance from nonprofits. In the case of emergencies, the following organisations are on hand to help Australians deal with financial challenges, offering services ranging from counselling meetings to food deliveries.
National Debt Hotline
The National Debt Helpline offers a free, confidential financial counselling service for people in Australia suffering financial difficulty. It’s a not-for-profit, community-based service that provides people with the tools, plans, and resources that will help them overcome their specific financial issues and get back on track.
In some cases, they may negotiate with creditors on their client’s behalf, which can be a very powerful tool and save you a lot of stress.
AskIzzy
AskIzzy is a website that connects people in need with everything from food to housing, to emergency financial assistance and family violence support. There are over 370,000 services listed across the country, and it’s anonymous to use. If you’re on the Telstra or Vodafone mobile network, you don’t even need phone credit or access to WiFi to use the search function.
Have a look at your local neighbourhood centre, too. Many of them run weekly food and clothing drives to help with the cost of living and ease the burden on families to put food on the table and warm clothes on the back.
What if you aren’t eligible for assistance programs?
Even though there’s help out there, government and nonprofit programs often have stringent eligibility criteria and long application processes — it can take months to receive support. Trying to get financial assistance immediately can be very frustrating. That’s one reason why crowdfunding can be such an essential part of your recovery, helping to secure emergency funds fast.
How crowdfunding can help provide financial relief
Crowdfunding can be a useful method for receiving financial hardship assistance. Using social media and other online tools, crowdfunding gives people the means to raise funds in order to receive emergency financial help.
Removing the traditional barriers that can exist when asking for financial support, crowdfunding brings people from the community together to support a cause they care about. In terms of providing urgent financial assistance, this could include helping to pay for lifesaving treatment or covering rent to prevent a family from being evicted from their home.
Immediate access to funds and 0% platform fees
It might surprise you to learn that not all crowdfunding platforms offer instant access to the funds you raise. At GoFundMe, not only do we provide immediate access to your funds, but we also have a 0% platform fee for organisers. That’s why our platform focuses on turning compassion into action.
If you’re ready to start raising funds, you can get helpful advice with these fundraising tips and ideas for those who need financial assistance.