Consumer Watch with Natasha Pirrottina: Explaining the free, independent role of a financial counsellor

Ever wondered what a financial counsellor does? These wonderful workers are qualified professionals who provide information, advice, and advocacy to people in financial difficulty. You can find them based in community organisations throughout WA, from large charities to smaller community centres, as well as local government agencies, and their services are independent, confidential, and compassionate. Best of all, they are free and not means-tested, ensuring that anyone in financial difficulty can access support. More than 2.5 million Australians, representing 13 per cent of the population, live in households experiencing high financial stress, and this number continues to rise. Financial counselling plays a crucial role in supporting individuals and families facing financial hardship. Financial counsellors are not financial planners or advisers. While financial planners assist individuals with money to invest, financial counsellors work with those struggling to meet their financial obligations or debts. Financial counsellors operate under a licensing exemption from the Australian Securities and Investments Commission and must meet strict conditions. They do not charge fees to clients, nor do they receive payments or commissions from third parties. They are required to have appropriate qualifications and training and must be eligible for membership in the Financial Counsellors Association of WA. Only people who meet these criteria can legally call themselves financial counsellors. The counsellors offer guidance in many areas, including understanding rules and laws related to bills and debts, budgeting and money management, and negotiating payment plans with creditors. They provide advice on managing unpaid bills, fines, and debts, support for those considering bankruptcy, and assistance with consumer issues. They also offer referrals to additional support services and information on other financial assistance options. In addition to assisting individuals and families, financial counsellors also provide support for struggling small businesses. They help business owners with debt negotiations and advocacy with banks and financial institutions, accessing dispute resolution services, and understanding business solvency and financial records. They also offer budgeting and financial planning guidance, advice on legal rights and accessing legal help, and assistance in identifying grants and concessions. Furthermore, they help clarify the intersection of business and personal assets, ensuring business owners have a clear understanding of their financial situation and available support. Through their expertise and dedication, financial counsellors provide vital support to individuals, families, and small businesses by helping them navigate financial challenges and work towards a more stable future. For more information or to find your nearest financial counsellor, visit fcawa.org or call the National Debt Helpline at 1800 007 007. Natasha Pirrottina is senior regional officer for Consumer Protection in the Mid West