If you’re in financial trouble, a financial counsellor might be able to help. Here’s a quick guide to what financial counsellors do.
Money is the root of all evil, so the old saying goes. While most would disagree, the fact is that when financial matters go wrong, they can really go wrong, taking any number of casualties with them. From time to time, many people from all walks of life find themselves struggling to buy food, pay the rent or mortgage whilst juggling numerous debts. This is where a financial counsellor can make all the difference in the world.
Note that this article relates to financial counselling services provided in each state and territory. Financial counsellors are a free and independent service. We are NOT talking about debt management firms, which charge a fee for service. ASIC recently released an interesting report on debt management firms.
What is a financial counsellor?
Financial counsellors are based in community agencies in all states and territories where they provide free, independent and confidential information to assist people in financial difficulty. They 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.
Funded largely by either State Governments or the Federal Government, financial counsellors can help you understand your options so that you can get back on your feet without incurring even more debt. They work with their clients to help them get out of the cycle of debt and take control of their finances.
A financial counsellor will:
help you get a clear picture of your overall financial situation
explain what options you have in relation to your debts and the advantages and disadvantages of them
may advocate or negotiate with creditors, government agencies and others
will listen and provide support.
A financial counsellor is on your side and no one else’s. They have strong links with other service providers and may also refer you to other agencies which can assist, such as community legal services, housing bodies and so on.
Other areas a financial counsellor can assist include suggesting ways to improve your financial situation and how to do a budget. They can negotiate repayment arrangements with creditors on your behalf, help you apply for a hardship variation, explain debt recovery procedures and perhaps refer you to other services, for example, a gambling helpline, family support, personal counselling or community legal aid.
If you find yourself with any of the following problems, your first priority is to talk to a free financial counsellor:
Debts that you are struggling to pay
Threatening letters or harassment by debt collectors
Debt recovery through the courts
House eviction, disconnection of gas, electricity, phone etc
Uninsured car accidents, taxation debts and unpaid fines
Financial counsellors are located across Australia. There is a free hotline you can call – 1800 007 007. This financial counselling hotline is open from 9.30am to 4pm Monday to Friday. When you call this number you will be automatically transferred to the phone service in your state.
Otherwise go online for local details – at http://www.financialcounsellingaustralia.org.au/Home or https://www.moneysmart.gov.au/managing-your-money/managing-debts/financial-counselling/find-a-financial-counsellor
Last word of warning
If at any stage of your contact with a ‘financial counsellor’ or ‘debt counsellor’ they ask you to sign an agreement which includes paying any costs or fees, check this out carefully and get advice from a free Government funded financial counsellor.
There are a growing number of services advertising on television, radio and in local newspapers that say they can solve your debt problems.
Some of them are costly and don’t set out the full range of choices you may have. They may focus on one solution such as a Debt Agreement (under the Bankruptcy Act) or budgeting. These “solutions” often provide greater financial benefit to the company offering them, than they will to you.
The post What does a financial counsellor do? appeared first on Canstar.