HELPING low-income recipients to avoid crippling, high-interest loans that were difficult to pay off is an important way to break the poverty cycle.
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That was the message at a financial services expo held in Dubbo yesterday to mark the start of anti-poverty week.
The event aimed to boost understanding of microfinance services available in the local area and demonstrate how those programs could help build financial resilience and wellbeing and reduce poverty and hardship.
Figures released by the Australian Council of Social Service this week suggested poverty in Australia was growing, with 13.9 per cent of Australians living below the internationally-accepted poverty line.
Anglicare Western NSW was among welfare agencies who set up at the expo in the grounds of Holy Trinity church.
"This week is a recognition there is poverty, and we are among a number of agencies here working very hard to overcome that," Anglicare Western board member Sue West said.
Anglicare's No Interest Loan Scheme (NILS) was one program helping individuals and families to access credit without the burden of high interest charges, she said. The process was designed to ensure financial inclusion and build financial literacy, self-confidence and dignity.
"Being able to access low-interest loan schemes and giving people the skills to maximise what resources they have to lead a good quality of life all help break the poverty cycle," Ms West said.
"It helps when children see their parents using those skills, it teaches them coping mechanisms for when money is tight.
"It might be something as simple as buying a cheap cut of meat and slow cooking it because that's tastier and cheaper than going out and buying a whole lot of fast food which is full of sugar and fat."
On display were a range of no-interest and low-interest loan schemes which were designed to steer people away from payday lenders who charged exorbitant interest and often led to people getting into deeper financial strife, Ms West said.
Robert Hadden from Coonabarabran received a NILS loan to buy a new bedroom suite earlier this year.
The 48-year-old said there was no way he could have afforded it without Anglicare's help.
"I've been repaying the loan since the start of the year and I'm more than halfway through," he said.
"When I'm finished I hope to get another one so I can buy a new home computer."
Making ends meet had been a constant battle for Mr Hadden, who had been unemployed for two years and was supporting his wife on a carers' pension.
Stalls at the expo had information about a range of programs including Step UP loans, matched savings from Saver Plus and Money Smart tools.