Schemes to help poor families clear debt give hope of a better future

Debt woes can trap families in poverty, spill over to next generation, say social workers

- Theresa Tan

Debt and financial woes have always weighed Mr Wandy, 48, down. 

His family used to owe about $1,500 in utility arrears, and his wife had to borrow “small sums” of money from family and friends to help them get by.

But by the end of October, he would have cleared his utility arrears, with the help of the Methodist Welfare Services (MWS), a social service agency.

Since April, he has been repaying $100 a month to settle his utility arrears, with the MWS matching it with $200 each time. 

“It’s a relief to get my debt cleared. I’m not so stressed now, and it’s helping my mental health,” said Mr Wandy, who is currently unemployed and declined to reveal his full name.

“Before this, I was in a mess. Now, I can start to think about my future.”

He suffers from a mental illness and a degenerative spine condition, which causes him a lot of pain. His wife earns less than $2,000 a month working in a coffee chain.

He does not want to ask their four children, aged between 18 and 25, for money as they have their own families to support, among other reasons, he said.

So the MWS Family Development Programme, which started in 2016, was a lifeline for him.

The programme “alleviates the strains of poverty” by helping families get out of debt and build up savings for a rainy day, said Ms Annie Goh, the programme’s manager.

Among other criteria, applicants must have a per capita gross income of $850 or less a month.

For every dollar of debt repaid by a beneficiary under this programme, the MWS matches it with $2 and this is capped at $200 per month.

The programme covers only debts on daily living necessities, such as public housing rental, utilities and telecommunications arrears. It does not clear debt from licensed moneylenders or loan sharks.