As financial advisers we are here to help you invest your money, grow your wealth, and achieve your lifestyle goals.
But if you’re in financial difficulty and struggling to make ends meet, a financial counsellor can help you get back on your feet.
From time to time, many people find themselves struggling to pay the rent or mortgage and juggling numerous debts – from paying gas and electricity bills to meeting commitments on their personal loans or credit cards.
What is financial counselling?
Financial counsellors they give people information and advice about their rights and options regarding their debts, they offer strategies for tackling financial difficulty and they can advocate with creditors on your behalf.
Minter says financial counsellors can help you:
- Understand which debts are priorities
- Deal with debt collection agencies
- Develop a money plan, which may include ways to increase your disposable income
- See if you can access insurance via your superannuation, credit card insurance or other insurance you may not even know you have
- Advocate and negotiate with creditors to reduce/defer/waive payments
- Access grants, concessions and dispute resolution schemes
- Understand your rights, the impact of bankruptcy and how the credit reporting system works
- Identify if you need a referral for legal advice or other services
- Provide emotional support
“Financial counsellors have an extensive knowledge of a range of areas of law and policy, including consumer credit law, debt enforcement practices, the bankruptcy regime, industry hardship policies and government concession frameworks,” says Minter.
Who can see a financial counsellor and when?
Anyone can access financial counselling by calling the National Debt Helpline or visiting the website.
“People can call for financial counselling any time they are stressed about meeting payments and don’t know what to do,” Minter says.
“That can be when they can’t pay their rent and are about to be evicted, when they’re considering bankruptcy, or when they have lost their jobs, for example.”
Minter stressed that the earlier you called, the better.
“Don’t wait until you’ve lost your job and used your redundancy. The earlier you tell banks and energy companies of your situation, the more options they have to help you without affecting your credit rating,” she said.
“People can also call their bank, utility company or phone company directly – all these industries have to offer assistance to people in financial difficulty under various legislation and codes of practice, so try this first.”
Are financial counsellors qualified?
Financial counsellors hold at least a Diploma in Financial Counselling, are accredited with their state based professional bodies and must meet annual professional development requirements.
“They have a duty to act in their client’s best interest,” says Minter
And what next after the financial counsellor has helped get you back up on your feet?
Well, that’s when it’s time to expand your knowledge and visit a financial adviser who can help start growing your wealth.
