Irene Kettridge and captain Chris
By Paul Dunlop
THE double whammy of rising interest rates and skyrocketing petrol prices could tip many local families over the edge, welfare groups have warned.
Pakenham residents and people in surrounding areas are among those expected to be hardest hit by last week’s interest rate hike.
Further pain may also be in store when Cardinia Shire Council releases its budget for 200607.
A council rate rise of up to seven per cent is expected in line with previous forecasts, although there could be some relief with expectations of a reduced municipal charge.
The interest rate increase on top of the spiralling cost of petrol means many households are spending $60 a month more on fuel and housing than at the start of the year.
Cardinia Combined Churches Caring (4C’s) Food Bank coordinator Jeni Mathieson said the impost was more than many families could bear.
“A lot of people are already struggling to make ends meet and this is only going to make things worse,” she said.
“We’re definitely noticing the petrol situation already so this will have an even greater impact.”
For a household with an average mortgage of $217,000, the interest rate rise translates into an extra $35 a month, or $420 a year.
Pakenham Salvation Army captain Chris Garcia warned families would have to slash spending even further.
For some households, this was simply not possible, he said.
“The message is that people have to put on the brakes,” he said.
“That’s all very well for people who have the means to do so. Some don’t have that luxury.”
Welfare groups such as the 4C’s, St Vincent de Paul and the Salvation Army provide food and emergency clothing and relief as well as advice on diet, budgeting and even counselling.
Demand for food and emergency relief has risen significantly with petrol prices, and Mr Garcia said he expected the need for support to be even greater now.
“This cold snap has already brought people in who don’t have money for warm clothes,” he said.
“So many families are just struggling from bill to bill and this interest rate increase is going to be another hit on the wallet.”
Mr Garcia was not optimistic about forecasts of tax relief in the federal Budget.
“It might help middle Australia, but a mum and dad who have moved to Pakenham and are mortgaged to the hilt are unlikely to have much to celebrate,” he said.
