Gambling - financial issues

Gambling can cause serious financial problems. Australians with gambling problems lose, on average, around $12,000 every year. Most of the money lost is taken from household funds or borrowed from family and friends.

Not having enough money to pay the household bills or to support the family may also be a source of relationship conflict. There are steps you can take to manage the financial impact of gambling on your life and the lives of those around you.

Control cash flow

Some people who have problems with gambling find they are tempted to gamble when they are carrying cash. Some tips to limit the availability of cash and protect your earnings include:

• Keep records or a diary of all finances including assets, income, expenses, contributions and gifts.
• Arrange to have your wages paid directly into a bank account or
• collected by your partner or a support person.
• Carry only enough cash for the day’s expenses and leave credit and ATM cards at home or with someone you trust.
• Pay your bills by direct debit or cheque. Organise to pay some of your bills on the day you are paid or, where possible, pay bills in advance.
• Arrange to have a low daily withdrawal limit on your bank account and eliminate cash withdrawals on your credit cards.
• Tell family and friends what you’re doing and ask them not to lend you money.
• Don’t keep large sums of cash in the house.
• Avoid jobs that involve handling cash.
• Treat yourself to something you enjoy and regularly put money away for it.
• Seek professional financial counselling. Gambler’s Help financial counselling is free.

Protect your assets

There are things you can do to ensure that your property and assets are protected. Suggestions include:

• Transfer titles of property into your partner’s name only or into the name of someone who you trust. Your property settlement rights under family law continue to protect your interests.
• Transfer other important assets, such as cars, into your partner’s name only or that of someone else who you trust.
• Talk to a solicitor about placing a caveat on your property. As long as the caveat is in place, it will be more difficult for you to use your house as collateral to borrow money for gambling.
• Consider putting a ‘no more credit’ notation on your credit record. A financial counsellor can help you with this.
• Seek professional legal advice. Your local community health or legal centre may be able to help you.

Debt repayments

With some help from professionals, you can make plans to repay your debts. Suggestions include:

• Seek advice from a financial counsellor. These professionals are experts in credit law and debt collection practice.
• Arrange to have regular bills automatically debited from your account.
• Negotiate realistic repayment installments with creditors.
• Draw up a weekly household budget and strictly allocate a portion of income for debt repayment.

Stop borrowing money from others

Some people with gambling problems borrow money from friends, family members and others. If large debts aren’t repaid, these friends can find themselves in difficult financial circumstances.

You should resist the urge to borrow from family and friends, and they should resist the compassionate urge to lend you money. Taking responsibility for your debt and working to get yourself out of trouble is part of the recovery process.

If you have borrowed from people before, protect them and yourself by requesting they never lend you money again under any circumstances.

Bankruptcy and gambling

If your debt is insurmountable, voluntary bankruptcy may be the best option. However, you should only consider this after professional advice from your financial counsellor or a community legal centre.

Where to get help

• Gambler’s Help Tel. 1800 858 858, TTY 1800 777 706 – 24-hour telephone counselling service
• Gambling Help Online - for problem gambling counselling and support (Australia-wide), 24 hours, seven days
• Financial and Consumer Rights Council Tel. 1800 134 139 or (03) 9663 2000
• Gamblers Anonymous Tel. (03) 9696 6108
• Gam-Anon Tel. (03) 9898 7526 (volunteers only)
• Lifeline Tel. 13 11 14
• Suicide Helpline Victoria Tel. 1300 651 251
• MoneyHelp Tel. 1800 149 689 Monday to Friday, 9.30 am to 5.00 pm – a free financial counselling and debt advice phone service for Victorians (includes interpreter services)

Things to remember

• Australians with gambling problems lose around $3 billion dollars every year, which is about $12,000 each person.
• Research suggests that the money lost is mostly taken from household funds, but around half of all people with gambling problems also borrow money from other sources.
• If you have a gambling problem, a financial counsellor can advise you on how to manage your money and repay your debts.

You might also be interested in:

• Gambling - advice for family and friends.
  
• Gambling - do you have a problem?.
  
• Gambling - how to change your habits.
  

Want to know more?

Go to More information for support groups, related links and references.

This page has been produced in consultation with and approved by:

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Victoria's Problem Gambling Strategy

Fact sheet currently being reviewed.
Last reviewed: February 2010

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Gambling can cause serious financial problems. Most of the money used for gambling is taken from household funds or borrowed. A financial counsellor can offer advice on debt and money management.

Content on this website is provided for education and information purposes only. Information about a therapy, service, product or treatment does not imply endorsement and is not intended to replace advice from your qualified health professional. Content has been prepared for Victorian residence and wider Australian audiences, and was accurate at the time of publication. Readers should note that over time currency and completeness of the information may change. All users are urged to always seek advice from a qualified health care professional for diagnosis and answers to their medical questions.

For the latest updates and more information, visit www.betterhealth.vic.gov.au

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