How a financial counsellor could help you

Estimated reading time
 3 min

Learn all about

• The different ways a financial counsellor can help you
• What to expect when you get in touch with a financial counsellor
• Why it’s important to reach out as soon as you think you’re experiencing financial hardship

If you’re feeling overwhelmed about money, struggling with multiple debts or having difficulty paying for rent, food or other basic items, then a financial counsellor could help you get back on track.

Not sure what a financial counsellor does or whether it’s time to talk to one? To find out more, we spoke to Veronica Johnson, a Senior Financial Counsellor in Western Australia’s remote Kimberley region.

Veronica works at Broome CIRCLE, an independent organisation that provides community services like financial counselling to those in need of help. Her skills are many and varied – she offers support for dealing with credit and debt issues, negotiating affordable payment plans, dealing with car or house repossession, getting debt collectors off clients’ backs and more.

And just like other financial counsellors around Australia, her services are completely confidential and free to access.

Veronica has seen a lot in her 10 years as a financial counsellor. And, right now, she’s hearing from more and more people who are facing financial hardship due to the cost-of-living crisis. Here’s her advice for those who are feeling the pinch.

First, can you tell us what financial counsellors do?

VJ: A financial counsellor is there to support people who are going through financial hardship. We’re fully independent professionals who work side-by-side with our clients to educate and guide them through the available options, building on their strengths, giving them options and providing support as they make decisions about their situation.

Financial counsellors also advocate for those who’ve been misled, helping them get compensation when it’s due. Not only do we advocate for individuals, but we also advocate for broader systemic change.

Let’s break it down a bit. What should someone expect when they first give you a call?

VJ: When people get in touch, the first thing I’ll do is find out what their immediate priorities are. People usually only talk to us once things are pretty serious, so I’ll find out how we can help take care of essentials like accommodation and food. Basically, whatever they need to get through the next few days.

Then, I’ll work holistically with them to sort through and prioritise their issues. We can help with everything from doing a budget to negotiating with financial institutions about putting loans on hold. This can buy them a little time while they find employment or get things in place.

If other supports are needed, then I’ll refer my client on. For example, if someone is experiencing mental health issues stemming from their financial stresses, then I can refer them to a regular counsellor.

What advice would you give to someone experiencing financial hardship?

VJ: When you realise you’re experiencing hardship, the first thing you should do is get in touch with any financial institutions or companies you owe money to, whether that’s your bank, your internet provider or your water or electricity supplier. Let them know where you’re at and whether you’ll be seeking the assistance of a financial counsellor,

If you’re facing multiple debts and are feeling overwhelmed by your situation, that’s when it’s time to reach out to someone like me. Not only will we work hard to help you find a solution, but by sharing your issues it can help take the stress away.

Most importantly, don’t bury your head in the sand when times get tough. The longer you leave things, the harder they are to fix. But know that there’s always something a financial counsellor can do to help – even if it’s helping you navigate a declined hardship application or referring you to another service if ours isn’t the right one for you.

Financial counsellors do a great job in helping people get back on track. There’s always a solution, no matter how bad you think things are today.