How to Get Out of Debt in Australia, Without Doing It Alone

By Molly Benjamin, Founder of Ladies Finance Club

Listen to the full podcast here.

There’s a particular kind of dread that comes with debt. It’s not just the numbers on a screen or the letters piling up on the kitchen bench. It’s the knot in your stomach when a bill arrives. It’s the way you instinctively close your banking app before the balance even loads. If that sounds familiar, this episode of Get Rich was made for you.

I sat down with Kristen Harnett from the Salvation Army’s Moneycare service, a financial counsellor Australia has been quietly lucky to have. Kristen has spent her career helping everyday Aussies navigate debt with compassion, clarity, and zero judgement. And the best part? Her service is completely free.

What follows is the kind of conversation that feels less like a finance lesson and more like sitting down with a trusted friend who just happens to know everything about creditors, hardship provisions, and how to rebuild your life after things fall apart.

First Things First: What Does a Financial Counsellor Actually Do?

A lot of Australians have never heard of financial counsellors, let alone reached out to one. Kristen describes it simply: it’s a free, independent service that provides information, support, and advocacy for people who are finding it tough financially. That’s it. No fees. No catch. No judgement about how you got here.

I am enthusiastic about them for a reason. “I always call you guys the angels of the finance world,” and honestly, it’s hard to disagree. Whether you’re dealing with credit card debt Australia has made dangerously easy to accumulate, tangled up in buy now pay later debt Australia’s most popular apps have normalised, or facing something more serious like payday loan help Australia desperately needs more access to, a financial counsellor can step in and advocate on your behalf in ways most of us simply don’t know how to do ourselves.

Debt Isn’t a Character Flaw. Here’s Why You’re Not to Blame.

One of the most powerful moments in this conversation comes early, when I ask what the real reasons are that Australian women end up in serious debt. Kristen’s answer is worth sitting with.

“I can’t say I’ve seen that it’s been poor spending habits,” she says. “Life is travelling along and then all of a sudden the cost of living happens, petrol goes up, food goes up, you lose a job, you have a sick child.”

The cost of living crisis Australia is currently experiencing has only deepened this reality. Kristen notes that she’s now seeing entirely new cohorts of people reaching out, including those with steady, stable incomes who are still struggling to meet their financial commitments. People who did everything right. People who are still finding themselves underwater.

There’s also something worth naming about the way we finance purchases. When you put something on a credit card or use buy now pay later, Kristen points out that you’re actually buying two products at once: the item itself, and the financial product used to pay for it. We tend to research the first one carefully and barely glance at the second. That gap, small as it seems, is where a lot of debt begins.

The Real Cost of Debt Shame

Debt shame Australia doesn’t talk about enough. There’s a persistent cultural myth that financial struggle is a moral failing, and that if you’re in debt, it’s because you did something stupid. Kristen gently but firmly pushes back on this.

“We all make mistakes,” she says. “What differs is sometimes our ability to get out of it.”

Debt anxiety is one of the main reasons people wait far too long before asking for help. They’re scared to open envelopes, terrified to check their accounts, and convinced that reaching out means admitting defeat. But as Kristen reminds us, seeking help isn’t failure. It’s responsibility. It’s the same logic she applies to everything: whenever you’re stuck, ask “who can help me with this?” The answer, when it comes to debt, is a financial counsellor.

The relief people feel after their first session isn’t just financial either. Clients regularly tell Kristen it’s the best thing they’ve done. They describe getting their clarity back. Being present again with their kids. Feeling like themselves. Financial stress costs more than money, and addressing it pays back more than dollars.

Signs It’s Time to Stop Googling and Make the Call

Kristen doesn’t believe in waiting for a perfect moment to reach out. Her view is refreshingly simple: just call. But for those who need a nudge, she describes a few telltale signs.

That yucky feeling in your stomach when a bill arrives. The sense of “I don’t know what to do anymore.” Robbing Peter to pay Paul with no clear plan for how to actually get ahead. Dreading opening emails or envelopes. Even just a quiet suspicion that something about a bill or a contract doesn’t seem right, that’s enough. Come and chat, she says. They’ll go through the documents with you.

And to anyone thinking their situation isn’t “bad enough” to warrant help, Kristen has a characteristically warm response: “If you have a broken arm and I have two broken legs, they both need to be dealt with.”

What Actually Happens When You Reach Out

Kristen walks through the process honestly and warmly. A session begins with understanding your full picture: what brought you here, what you owe, what’s coming in, what’s going out, and which debt is causing you the most stress. From there, it’s about building a plan together, one where you’re always in the driver’s seat.

On the question of what can realistically be achieved, Kristen is clear that it’s genuinely case by case. A debt freeze Australia’s lenders are often willing to grant during hardship. Interest frozen on a credit card. Repayments reduced or paused on a mortgage. In some cases, where a lump sum is available, counsellors can negotiate cents in the dollar as a full and final payment across multiple creditors. Credit card negotiation Australia rarely knows is possible, but happens regularly.

For people experiencing family and domestic violence, including elder abuse or financial abuse from adult children, Kristen notes that many creditors now have strong hardship provisions specifically for these circumstances. A counsellor can advocate on your behalf, sharing what’s happening and working out a plan that protects you.

The Debts That Cause the Most Damage

When I ask which debts are hardest to deal with, Kristen doesn’t hesitate. Second and third tier lenders. Payday loans charging up to 48% interest. Pawn broker debt Australia is disturbingly unaware of, where interest rates can reach 700 to 800%. These are the providers with fewer accountability measures, less involvement in dispute resolution schemes, and far less flexibility when things go wrong.

Car finance debt Australia is also a complicated one. Kristen encourages anyone shopping for a vehicle to shop for the finance just as carefully as the car itself. Check with your regular bank. Compare properly. You’re buying two products, and the finance product matters just as much.

And if you’ve already signed up for something that felt like a desperate measure at the time? Kristen’s response is gentle and without judgement: “Desperate times are desperate measures, and you do what it takes to survive. We get that. So even if you find that, please just reach out.”

The Debt Snowball Method and Other Tools for Taking Control

For those who want to start tackling things on their own, I raised the debt snowball method Australia has embraced through personal finance communities. List your debts from smallest to largest. Pay off the smallest first while making minimum repayments on the rest. Once that’s cleared, roll that payment into the next one.

Kristen is supportive of the method, with one important caveat: don’t ignore any of your debts along the way. She also suggests keeping an eye on which creditor is charging the most interest, since clearing that one faster can save you significantly in the long run. But ultimately, the best system is the one you can actually stick to. If what you’re doing isn’t working, that’s not a reason to feel defeated. It’s a reason to reach out.

Rebuilding After Debt: How to Rebuild Finances in Australia

Getting out of debt is one challenge. Staying out is another. Money management for Australian women often focuses on budgets and spreadsheets, but Kristen’s approach goes much deeper.

The Salvation Army’s financial literacy programme, You’re the Boss, is available to download on the salvationarmy.org.au website and covers everything from understanding your money story to identifying your triggers, both the ones that lead you to spend and the ones that stop you from asking for help. It’s about understanding yourself, not just your spreadsheet.

Kristen is also clear that rebuilding doesn’t mean going without joy. She talks about knowing your values, spending in alignment with what genuinely matters to you, and finding the free and beautiful things in life: Parkrun, libraries, time in nature. “We don’t want it to be a frugal life if frugality is not your value. We want you to flourish.”

The data backs up what Kristen sees on the ground. People who go through financial counselling services report better mental health scores, improved wellbeing, and stronger social connections. Building those connections, having people in your corner who can drop a meal off on a hard day, is one of the most protective financial factors there is.

Free Debt Help Australia: Where to Find It

If this episode has landed for you, here are the places to go. This is genuine, free debt help Australia has available right now.

Salvation Army Moneycare: 1800 722 363 or salvationarmy.org.au. Appointments are available by phone or in person, and there’s a live chat option on the website if you’d prefer to stay anonymous.

National Debt Helpline: 1800 007 007 or ndh.org.au. Another free, confidential, and professional service offering debt advice Australia can access regardless of income or circumstance.

Ask Izzy: A brilliant resource for finding emergency relief services, food vouchers, and local support options in your area.

And if you’re dealing with utility providers or council rates, call them directly. Rebates and hardship grants exist in every state, and most people simply don’t know to ask. The same goes for ombudsman services if a provider isn’t playing fair.

A Final Word for Anyone Who’s Too Scared to Even Open Their Banking App

Kristen’s response to this question might be the best part of the entire episode. “You are exactly who I want to talk to,” she says. “You don’t have to live with that fear.”

For Australian women and debt, the conversation has long been tangled up in shame, silence, and the exhausting idea that you should be able to handle this yourself. But the financial counselling system in Australia exists precisely because debt is complex, creditors are powerful, and none of us should have to navigate it alone.

Your financial situation is not your worth. It’s not a measure of your capability or your character. It’s a set of numbers that, with the right support, can change.

So if there’s a knot in your stomach right now, consider this your sign. Make the call. It won’t cost you a thing.

 And if you want to connect with an expert who gets it, head to ladiesfinanceclub.com to explore the LFC directory and find an ambassador who can help with whatever you need.