In Australia financial counselling has emerged as an important component of policy responses to assist low income households and individuals in financial stress. However, the evidence on its effectiveness in alleviating or resolving debt-related issues is patchy. This article contributes much-needed empirical evidence on its impact on low income households and presents the results of a recent national study of financial counselling clients in Australia. The research findings demonstrate the complex factors contributing to financial stress and the effectiveness of financial counselling in providing positive outcomes on a range of measures, including debt resolution, financial capability and health and wellbeing, and highlight the importance of early intervention. From a policy perspective, the study points to the importance of having a mix of strategies to address financial stress in low income earners that combine approaches based on individual responsibility and models based on social justice and advocacy.
