25 Nov 2012

Report examines high debt among Pacific families

9:41 am on 25 November 2012

A report looking at the causes of high debt levels in the Pacific community says families often do not seek help before hitting a severe financial crisis.

The Families Commission issued a report on Saturday based partly on discussions with members of Pacific communities and 25 agencies, such as budgeting services.

One of the agencies' concerns was the reluctance of Pacific people to ask for help, often until they were facing eviction, repossession of cars or mortgagee sales.

They said many people did not want others to know they were struggling.

Low incomes, easy access to finance with high interest rates and language barriers when it came to understanding contracts were factors in financial strain.

The study found cultural expectations, which involved giving money to churches, extended family and community events, also contributed.

The report says the church could encourage Pacific families to take advantage of support services.