Madam, chronic debt is one of the key factors perpetuating poverty. I am concerned about the families I met who are unable to get out of debt, sometimes even after receiving Government help.

Now, I am not speaking on families who owe money, that run into hefty amounts due to business failure or gambling. I am referring to families who are often in arrears for phone, utilities, rental, mortgage payments and simply cannot make ends meet because of their low income, or debt burdens left by spouses, or debts accumulated due to inaction.

The current financial help that the MSF's Social Service Office (SSO) offers may not solve this debt spiral. One of the possible reasons is that the formula that is used usually does not factor in a needy beneficiary's financial liability status when computing the help quantum. I can understand why the State would not want to use taxpayers' money to solve financial mismanagement issues of other citizens.

The SSO officers themselves may also not be trained in financial counselling. However, the effect of ignoring this is that the family continues to be in a state of poverty, impairing their ability to get out of the spiral. When they cannot clear their debts, they simply borrow more to make ends meet, getting deeper into debt. Measures like skills upgrading for better jobs or ensuring their children attend school may end up as low-priority.

This is the reason why the Methodist Welfare Services, during their Jubilee year, embarked on a scheme to help families clear their debts with gifts of up to $2,000. But in the absence of bonuses like this, I would like to make two suggestions to the Ministry.

One, develop a "Turn-key Solution" for families of this profile. Many times, the persons in debt have to work this out themselves and they often give up. Do not pack them off to general money management courses or send them to an external Financial Counsellor. Help them work out a financial debt redemption plan. At times, it may mean being more generous also, in the financial help given directly to assist dependants, such as their children and their elderly parents.

Two, work with partners and develop creative "Get-out of Debt" Schemes that will incentivise affected families to clear their debts. One such scheme that Methodist Welfare Services have started was to match every dollar of debt paid off by the clients, up to $100 a month. Another could be creating flexible job opportunities to allow them to work part-time to earn some extra cash.