Client has difficulty managing their finances

Difficulties in managing their finances can impact on the client's ability to sustain alternative housing. To consider whether there are sustainability issues due to financial management the client must have problems keeping affordable, suitable and adequate housing. They may not be able to find a suitable property due to difficulties in financial management caused by:

• community or cultural expectations of financial contribution for example tithing, sending money overseas
• debt due to having to purchase necessities for example washing machine, dryer, fridge, freezer
• cannot afford essential car repairs
• partner has left with their money
• bad investments resulting in debt
• was guarantor for someone who did not repay the debt and now the client is liable
• addiction problem, drug, alcohol or gambling which means the money is not available for essential living expenses
• unable to budget or bad financial management
• change in employment circumstances for example have become unemployed
• not enough money for food after paying essential costs

Difficulties in financial management may lead to the client being unable to cope emotionally or having poor health due to stress. Due to high debt, clients may have insufficient income to meet all their financial commitments.

Note the assessment is of the difficulties the client has in managing their finances. It is not expected that the client addresses their financial issue and therefore reduce their housing risk at this stage of the process.