WOMEN, MONEY & DEBT
A WIRE WOMEN'S INFORMATION
SHEET
© 2010 WIRE Women’s Information
Women’s Information Referral Exchange Inc.
372 Spencer Street, West Melbourne, 3003
 Call Women’s Support Line 1300 134 130 for the cost of a local call
(Telephone Interpreter Service available; hearing-impaired women can chat online at
www.wire.org.au or email inforequests@wire.org.au Weekdays 9am – 5pm
 Visit Women’s Information Centre at 372 Spencer Street, West Melbourne
Weekdays 9.30am – 4.30pm
 Email inforequests@wire.org.au (response within 2 business days)
 Chat online (weekdays 9am – 5pm) or visit our website www.wire.org.au
The production of this information sheet was made possible with a grant from the Sidney
Myer Funds.
Every effort has been made to ensure the information contained in this sheet is accurate
and current at the time of printing – September 2010. However, no responsibility will be
taken for the accuracy or reliability of the information, or for any loss, which may arise from
errors, omissions, or changes to government policy or the law.
© Women’s Information and Referral Exchange Inc. ABN 98 957 157 895 Reg. No. A122
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WOMEN AND MONEY
Many people face financial difficulty at some time in their lives. When many bills arrive at
once, jobs are lost, or mobile phone contracts or credit card terms have been
misunderstood, people can suddenly find themselves in a crisis.
Achieving financial independence and maintaining a reasonable standard of living for many
women can be a concern, as women generally earn less than men. Despite experience with
household budgets women can still doubt their ability to manage money, and have trouble
finding trusted, independent financial information.
Women’s earnings
Women are paid on average $240 a week less than men for many reasons. Their working
lives are more likely to be interrupted by caring for children and family— they may work
part-time or take time off work. Women also tend to work in paid occupations regarded as
“women’s work”—their skills are valued differently and they are paid lower hourly rates.
Pressures on women’s finances
Besides earning less, women often have to spend their limited earnings on their children
and other living expenses. Life-changing events including separation and divorce or a
partner’s death can leave women in financial difficulty, with a greater risk of getting into
debt.
How did I get into debt?
Debt can be overwhelming
Regardless of women’s backgrounds or where they live, dealing with financial matters can
bring up feelings of inadequacy or even hopelessness and shame. Unplanned expenses can
mean women finding themselves unexpectedly in debt.
Debt is a fact of life for most people. While suddenly getting into debt can be devastating, it
can also be a good opportunity to look closely at your finances and develop new strategies.
‘Useful debt’
When carefully planned and budgeted for, debt can be useful. Many people take out loans
to buy important things to improve their lives and security, such as a car or home. While this
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may be exciting, it is important to view loans as borrowed money and to repay them in
regular and manageable instalments that fit your income and expenses.
Managing HECS
Higher Education Contribution Scheme (HECS) is another useful debt, which must be repaid.
HECS–HELP (Higher Education Loan Program) is a loan that the government pays to tertiary
institutions such as universities to pay for a student’s education.
Although you do not have to pay off your HECS or HECS–HELP until you start earning over a
certain amount, you pay less on the loan if you make lump sum payments or partial
contributions. Many young women do not know the size of their HECS debt, or how to pay it
off early. Investigate your repayment options and benefits at studyassist.gov.au or call HELP
Loans 1800 020 108.
Avoiding credit card debt
Credit cards and store cards are convenient for making small purchases and for covering
expenses between paydays. However, credit cards also encourage impulse buying and small
debts can quickly add up. Interest charges mean you always risk paying more when you buy
on credit than if you pay cash.
Credit card debt can make managing finances extremely difficult, particularly for women on
lower incomes or those who support families on their own.
With credit cards:
- Aim to pay off your entire credit card bill each month to avoid paying high interest
rates
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Find out what your credit card fees are—you may be charged extra if you do not pay
the minimum monthly repayment
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Combine your credit cards and keep only one
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Use a debit card (ask your bank for one)—spend your own money instead of paying
on credit
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Leave your credit card at home if you go shopping and may impulse buy
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Keep your credit limit low and turn down offers to increase it
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Understanding mobile phone contracts
Mobile phone contracts can be confusing. Many young women struggle with mobile phone
debt when they do not understand the phone contract, make too many calls or exceed their
access fee limit. Using mobile premium services such as ringtones and horoscopes, or
downloading music, games and other applications from the internet onto a mobile phone
can also lead to large phone bills.
With mobile phones:
- Consider a pre-paid plan
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Ask your retailer or read your mobile phone contract carefully about charges for
exceeding your access fee limit and your contract length
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Understand connection charges, monthly fees, disconnection and reconnection
charges, call costs and contract termination fees
For more tips, visit the websites listed under Where do I go for help?
Gambling safely
If you are gambling more money than you can afford to lose, it is a warning sign that your
gambling is not safe and getting out of control. It is crucial to seek help early: contact
Gambling Help Online 1800 858 858 www.gamblinghelponline.org.au.
Avoiding Sexually Transmitted Debt
Sexually transmitted debt or ‘relationship debt’ is a common and serious situation. It
happens when a woman becomes liable for paying her partner’s—or ex-partner’s—debts.
This could be because she has signed a loan contract as a co-borrower or guarantor, is a
silent director of her partner’s company, or has signed a mortgage so her partner can obtain
a loan.
The reality is that a woman can be held responsible for her partner’s debts. Although the
National Credit Code states that the borrower is responsible for their debts, if a woman has
more assets or earnings than her partner, or is easier to find, it is likely she will be chased
for payment. As a co-borrower, a woman may even find herself solely responsible for a debt
that she has not received benefit from.
To avoid sexually transmitted debt:
- Purchase joint assets in both yours and your partner’s names
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Make sure joint debts are in both names (not only yours)
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Get legal advice before guaranteeing a loan for your partner and before signing your
name to a loan that will only benefit your partner and not you.
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Always read documents thoroughly, do not sign anything you do not understand,
and get legal advice from agencies listed under Where do I go for help?
What can I do when debt is a problem?
Seek help early with understanding and solving problems with debt. Call WIRE on 1300 134
130 for free and confidential referrals to a local financial counsellor, or to other financial and
legal services listed under Where do I go for help?
How can I become more financially secure?
Saving and budgeting regularly and planning for your financial future will help you avoid
getting into debt.
Savings
Taking control of your finances and avoiding debt starts with saving. Putting aside money
regularly can help you buy a large item or pay for a holiday; it also reduces the stress of
unexpected expenses or large bills.
Start saving now no matter how small the amount is. Setting aside as little as $10 a week in
a separate account or even saving on the cost of a cup of coffee regularly will improve your
financial security in the future.
Budgets
Budgets can include savings. A budget lists your income and expenses and shows you the
reality of your financial situation so you can better manage your finances.
Having a budget is useful if you are in debt—it shows your creditors where problems are
and allows you to create a debt management plan. This plan helps you work out how much
money is left over in your budget so you can pay off your highest priority debts first.
Reviewing your budget regularly will help you stick to your savings or debt management
plans. Life events such as changing jobs or home, having a baby or taking out a loan will
affect your finances. So your budget needs to change to keep meeting your needs.
Get free budget and
www.moneyhelp.org.au.
debt
management
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planners
from
MoneyHelp
at
Finding a financial counsellor
Financial counsellors help people in immediate financial difficulty such as debt.
Government and community services, such as MoneyHelp 1800 007 007, offer free financial
counselling services. You can also find a local financial counsellor through the websites listed
under Where Do I Go For Help?
Investments
Investments are a strategy to save for the future, even in small amounts. Your invested
money should be growing in value; but as investment always comes with risk, consider
talking to a financial planner and research your options before investing.
Unlike financial counsellors who provide a free community service, financial planners charge
fees for their financial planning services. Visit the Financial Planning Association of Australia
website fpa.asn.au for guidance on choosing a registered financial planner.
Contact WIRE
We will listen as your first point of contact and put you in touch with the right services.
- Call 1300 134 130 for the cost of a local call anywhere in Victoria, mobiles excepted.
(Telephone Interpreter Service available)
- Visit our Women’s Information Centre at 372 Spencer Street, West Melbourne
- Email us at inforequests@wire.org.au
- Visit our website or chat online at www.wire.org.au
*Where do I go for help?
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MoneyHelp (Victoria) 1800 007 007 Free, independent & confidential financial
counselling www.moneyhelp.org.au
Financial Counselling Australia 1800 007 007 www.financialcounsellingaustralia.org.au
Financial Ombudsman Service Australia 1300 780 808 www.fos.org.au Making a
complaint
Financial Planning Association of Australia fpa.com.au Visit the consumer site to find a
financial planner
Australian Competition and Consumer Commission 1300 302 502 www.accc.gov.au
MoneySmart www.moneysmart.gov.au Australian Securities and Investments
Commission (ASIC)
Centrelink Financial Information Service 13 23 00 (say ‘Financial Information Service’
when prompted on the phone) www.humanservices.gov.au
StudyAssist (Australian Government) studyassist.gov.au HELP Loans 1800 020 108
Consumer Action Law Centre (03) 9629 6300/ 1300 881 020 consumeraction.org.au
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Community Legal Centres Victoria (03) 9652 1500 www.communitylaw.org.au
Everyday-Law (Victoria Law Foundation) www.everyday-law.org.au
Victorian Law Handbook (Fitzroy Legal Service) www.lawhandbook.org.au
Women’s Legal Service Victoria (03) 8622 0600 www.womenslegal.org.au
*Updated on 1 April 2015
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