We have become aware of a cyber incident relating to an external provider we use for our customer management platform.

The external provider’s investigation is ongoing, and we are working to understand the nature of the incident and any impact on information held on our customer management platform.  As a precaution, we have notified our clients of the incident and provided guidance on staying alert to unexpected communications.

As payment arrangements are initiated and managed through the affected system, this function is currently unavailable. This means we are temporarily unable to process our clients’ usual payments.

If you are an active client or creditor of Way Forward, please refer to the email communication you have received regarding how we are managing client payments until usual arrangements can resume.

We sincerely apologise for any concern this incident has caused. If you have any questions or would like further information, please contact us on 1300 045 502 or assist@wayforward.org.au.

Celebrating David Berry’s journey at Way Forward

After his recent departure from Way Forward, we spent some time with David Berry, the founding CEO of Way Forward, to reflect on his time with us and his hopes for the future.

David’s path to becoming the CEO of Way Forward was serendipitous: “I had left a major bank and had been consulting for a few years when I got a call from a very special person who asked for my help in pulling together an idea that we had collectively tried to start a few years earlier. That person was Fiona Guthrie, CEO of Financial Counselling Australia.” It was this collaboration with Fiona that laid the foundation for what would become Way Forward, an Australian charity dedicated to helping individuals to successfully manage their problem debt through debt management services, at no cost to clients.

Reflecting on the early days, David shared that he knew Way Forward would be successful “from our very first client and every client since then. You just need to hear their stories and you’ll know we are the light at the end of a very long tunnel for so many people.” These stories of resilience and determination fuelled David’s commitment to reaching as many people as possible.

David notes that his proudest achievements at Way Forward are centred around seeing people’s lives transformed: “1,100 active clients, an additional 200+ who are now successfully debt free, 17 industry members, and corporate and community organisations working together to help people recover from challenging financial difficulties.”

Throughout his tenure, David has been touched by countless client stories. “I was the custodian of over 1,300 stories, all of which were unique and trudged through the paths such as health challenges, job losses, financial disappointment, abuse and addiction,” he remarked. “While each person’s experience is unique, the thing I love most is seeing people regain the confidence they once had.”

Looking to the future, David shared his vision for improving the financial landscape. He wants to see the industry develop a “better understanding of the DNA of how to help people first recognise the signs that they need help, how to give them the courage to ask for help, and how to ensure we match the right support mechanisms to the right person for the right circumstance.”

It’s clear that David’s passion for helping others extends beyond his role at Way Forward. As he embarks on his next chapter, David assured us that his commitment to supporting those in need remains steadfast, and that he’ll still be around in the financial crisis and problem debt arena. “Absolutely! I’m now heading up the Compensation Scheme of Last Resort, which is another really important initiative that will support people who have experienced life-changing financial losses due to financial misconduct.”

David has some parting words of wisdom for Fiona: “share as many client stories to as many organisations and people as you can. They are amazing expressions of resilience that will hopefully provide courage for others to seek assistance sooner.” David also expressed his deep appreciation for the Way Forward staff team and board, emphasising how much he cherished working alongside them.

As we bid farewell to David Berry, we thank him for his invaluable contributions to Way Forward and wish him continued success in his future endeavours. His dedication and passion have left an indelible mark on all who have had the privilege of working with him.

Way Forward has released the findings from its latest research into how people in financial hardship experience a cost-of-living crisis.

Read the report here.

The research found:

• People Way Forward support have less savings but are earning more, meaning they are spending more overall – in part due to cost-of-living pressures.
• People prioritise housing and this means when it costs more, other expenses are sacrificed. When finances are low, it’s what people don’t invest in that counts – after ensuring a roof over their head and putting food on the table, other expenses like insurance and extras for kids are being sacrificed.
• Budgeting and debt management strategies can help people out of financial difficulty, but people in financial difficulty find it hard to absorb that information due to the stress caused by being in hardship. It’s a vicious cycle.
• People want to learn how to manage their money better, but they don’t know how, with 50 per cent of respondents telling us they want a greater understanding of how to set up a plan to manage their finances and get out of debt.

The latest research backs up Way Forward’s previous survey findings from 2021 and 2022.

The results from three annual client surveys have consistently found that having even a small amount of savings (i.e., $1,000) and, to a lesser degree, budgeting are the greatest safeguards when navigating financial hardship and poor mental health.

Having savings – even small amounts – can significantly improve a person’s financial situation.

“We know that for many people, getting informed about how to manage their money, especially budgeting and saving, can be difficult. This is because when times are good and money isn’t a problem, there’s little reason to seek out new skills, but when times are tough, the ability to learn is affected by the stresses of dealing with financial difficulty,” said CEO David Berry.

“86 per cent of people who say they worry about money all the time see this impact their mental health at least weekly. We also understand that those who are most worried about money, struggle to manage their situation.

“While asking for help with an acute financial problem is a great start, our observations are that the best longer-term results come from supporting people in refining their money habits by budgeting, saving, prioritising and reflecting.

“Younger people are particularly vulnerable to falling into problem debt, which can be partly attributed to a lack of these skills. In the current age of digital shopping, where products are constantly marketed to young people via social media and purchasing is instantaneous, there are endless opportunities to make impulsive spending decisions.”

BNPL and wage advance products squeezing people more

Year on year, we’re finding that Way Forward’s clients are relying more heavily on BNPL and wage advance products to try to meet their cost-of-living expenses.

“We think it’s overdue that the Federal Government regulate BNPL and wage advance products as credit products, as we’re seeing the ongoing harm that these products continue to have and the way they worsen financial hardship,” CEO David Berry said.

“It is deeply concerning that of the people we surveyed who are in financial difficulty and have used wage advance or BNPL products, 1 in 3 feel trapped in a cycle of using wage advance products while 1 in 4 feels trapped in a cycle of using BNPL products.

“1 in 10 have used BNPL or wage advance products to pay off other debts, with this proportion being even higher among those with lower incomes.

“Nearly 50 per cent of people earning under $50,000 a year have used BNPL or wage advance to pay for essentials. For us it’s clear, BNPL and wage advance masks a problem – that a person is either in financial hardship or is close to it.”