Kiama MP Gareth Ward said people facing difficulties because of unfair or illegal loans and contracts could get help from Legal Aid NSW.

“Many deals and offers may have sounded tempting, but they can include hidden traps people only discover after signing on the dotted line,” Mr Ward said.

“Lawyers at Legal Aid NSW can check if contracts are fair and whether the consumer was fully informed, or they can help renegotiate new payment arrangements.”

Salvation Army spokesperson Tony Devlin said predator or fringe loans can cause real hardship.

“The Army’s counselling service, Moneycare, is usually booked out weeks in advance for most of the year. We encourage people to avoid predator and fringe loans and seek alternatives like Anglicare’s No Interest Loan Scheme (NILS).”

Mr Devlin said he would also encourage people to arrange to see a free and confidential financial counsellor by phoning 1800 007 007.

“Although occurring Australia-wide, debt is exacerbated in areas like the Shoalhaven because of issues like higher unemployment.

“Unexpected costs particularly hit hard on people with a low income who have little flexibility in their budget.”

He said debt shock and other financial difficulties have a marked impact on communities. A rise in stress and anxiety can cause health problems and even lead to relationship breakdowns and increased drug and alcohol use.

“At worse, thinking about suicide can become more prevalent.”

Anglicare’s Alwynne Simpson runs NILS in the Shoalhaven.

“It’s been running here since 2006, and was set up for low income people on benefits and with a health or pension card,” Ms Simpson said.

“NILS provides them with a line of safe credit, and is basically for purchasing essential household items such as washing machines and refrigerators. Other items might be computers for education or small business opportunities, and medical equipment such as hearing aids or sleep apnoea machines.”

She said someone wanting to access NILS would be invited to an interview, which included negotiating how best to manage repayments.

“The request then goes to a committee which considers the request. If successful, repayments are made through Centrelink deductions which are returned to the NILS pool.”

Ms Simpson said there might be up to 70 requests a year.

“The busiest time for us is after the summer school holidays and in the weeks leading up to Christmas.”

For more information about Legal Aid NSW, visit www.legalaid.nsw.gov.au or phone LawAccess NSW on 1300 888 529.

To contact the Salvation Army phone 4423 2102.

To talk with Alwynne Simpson, phone Anglicare on 4424 7100.