A new set of nationally endorsed Principles of Good Hardship Practice has been released, setting a best-practice guide for how organisations should support people experiencing financial difficulty.
Developed by the financial counselling sector, the ten core principles focus on respectful communication, early intervention, and fair, compassionate support for people in hardship.
“Too often, people in financial hardship are met with barriers, judgement, or a system that makes their situation worse,” said Dr Domenique Meyrick, CEO of Financial Counselling Australia (FCA).
“These principles are about flipping that experience, ensuring that support is easy to access, responses are consistent, and that the dignity and circumstances of each person are respected.”
The principles call on organisations to take early action, prevent harm, provide trauma-informed support, and ensure all staff are equipped to respond appropriately.
“When organisations get this right, it makes a life-changing difference,” said Dr Meyrick.
“Financial counsellors see first-hand how thoughtful, timely support can prevent spiralling debt and restore hope.”
FCA is calling on the financial services sector, utilities, teclos, water boards, local councils, strata bodies and any organisation that distributes fines, fees or credit to adopt these principles.
The principles are:
1. Clear and respectful communication
2. Support is easy to access
3. Timely action and responses
4. Proactive identification and outreach
5. Preventing harm
6. Support is trauma-informed and non-judgmental
7. Support is tailored, realistic and sustainable
8. Empowered and well-trained staff
9. Respect for advocates and support people
10. System-wide consistency and accountability
Above is a media release from Financial Counselling Australia. The original release is available on FCA’s website here.
For comment email media@financialcounsellingaustralia.org.au.