The provision of microfinance, as discussed in
section 2, can be a more suitable alternative to
risky borrowing from payday lenders or informal
sources where the financial and personal costs can
be high. The case study below illustrates the
significant stress that can arise when having to
borrow money from other more risky sources,
including personal associates. In this instance, the
brokerage funds and other resources through the
youth connections program were able to be used
to clear their existing debt that was proving to be
highly detrimental to the family’s wellbeing.
Hassan
3 contacts
Hassan was referred from the WCC settlement team for brokerage support around housing. He has
a family with three children. At the time he needed to move into a rental property he borrowed
money for bond as he did not know about a bond loan through the Office of Housing. Hassan
presented to WCC under intense pressure as the person they borrowed from wanted the money
paid back and Hassan felt indebted to him. In addition the person who they borrowed the money
from has an interest in his younger daughter and he felt that she cannot tell him to leave as they are
in debt to him.
While this particular situation did not fit the usual eligibility criteria for the loan, as Hassan and his
family were already in a property, it was decided that assistance from the housing program could be
provided with approval from the team leader. Assistance of $1347 was given to the real estate
agent in the form of a rent payment. Hassan agreed to repay $30 a fortnight, which he could afford.
Hassan’s daughter was also being supported by WCC’s Youth Connections worker and was able to
secure funds from another philanthropic organisation leaving only $400 for Hassan to pay. Hassan
has since paid off the loan and the family’s financial stress has decreased.
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