Getting out of debt can be a very stressful and difficult experience. In fact, some people say that it is next to impossible to do so alone. That’s where financial counselling comes in.

The financial counsellor’s job is help you get out of debt by providing information and support as well as advice for better money management.

When you go to professional financial counselling, the counsellor can look at your debts and financial situation objectively, and give you a realistic target which you should try to achieve. He or she can also suggest steps for achieving the target. It might be difficult for you to get out of debt and assess your situation alone – that is where an experienced, neutral third party can help.

There are many things that a good financial counsellor will do and some that they will not. Knowing what services a financial counsellor will provide will help you be better prepared for your meeting with your counselor.

Services provided

Financial counsellors can provide you with the following services:

  • They can help you evaluate the current state of your personal finances
  • They can help you to set up a budget for managing your money
  • They can negotiate on your behalf with creditors
  • They can give you more information regarding the process of debt collection and the legalities of debt collection
  • They can inform you of all the possible methods of improving your credit rating
  • You financial counsellor can support you during negotiations with creditors
  • If you need referrals to obtain any financial services, your counsellor can provide a referral
  • Financial counselling does not provide loans or other money for getting out of debt
  • If you are seeking services related to investing your money, then you should look for a financial advisor and not a financial counselor

A financial counselor can provide you with information and options. They can provide support for you when you take difficult decisions; however, they cannot take the decisions for you. After you have obtained all the information and advice necessary, you need to take your own decisions regarding how to pay off your debt. In the same way, a counsellor will not provide you with any loans or money. You need to maintain your budget and pay off your debts by yourself.

The financial counselling industry in Australia is guided by the Financial Counsellors’ Association of New South Wales.