EXPERT ADVICE CAN HELP RELIEVE THE PRESSURES OF DEBT

For 20 years, Julie Brown has been a debt adviser with Citizens Advice Scotland, helping thousands of people out of their money crises.

She brings order to chaos and signposts a way through a financial nightmare.

As an approved Money Adviser, Julie is happy to guide people through challenging times and says there is always a way to fix your finances, no matter how daunting it may seem.

Julie says,“it’s very embarrassing for people to call up and say they have a debt problem.”

“Understandably, they are nervous and think they need to explain their debt, in case I think they splashed out for a cruise or something.”

“Years ago, people would owe money to one or two businesses. Now clients regularly have between 10-15 smaller, higher interest debts, including credit cards, personal loans, payday lenders and overdrafts”.

Like all good money advisers, Julie helps each client to create a detailed income and expenditure that outlines the full financial picture.

She says:“you are telling a story that shows how many people are in the household, why you spend that amount on food and bills and what income is coming in.”

Julie can then use this information to negotiate options with creditors. Quite often, they are happy When Julie started as a debt adviser, the options for clients were limited but now there are so many more debt solutions in Scotland.

This includes a Debt Arrangement Scheme (DAS) – a payment programme that helps you repay your debts by making affordable monthly payments.

Another option is a Protected Trust Deed, a legally binding arrangement in Scotland where you make reduced payments over four years. At the end of this time, your unsecured debts are usually written off.

There is also bankruptcy, another form of insolvency.

An approved Money Adviser will help you decide on the right solution for you. They will also contact your creditors - taking the pressure and anxiety away, and helping you take control of your debts. to accept a reduced or token payment when they know the client is trying to sort their situation.

The financial crisis caused by Covid is comparable to the 2008 financial crash. However, she believes this one may become so much worse.

Julie says: “At the moment, we are seeing more working professionals coming for advice.

“People who were already on benefits before Covid haven’t been impacted as much as working people, in their 40s and 50s, home owners who may have been furloughed, had a wage cut and are facing higher bills

“These are people who have always worked, so they don’t know what benefits they could claim. As well as finding a solution for dealing with their debt, we also work with them to identify if they are entitled to any additional help. This includes things such as, fuel vouchers – especially important with kids home all day using electricity and the heating on.”

You can never underestimate the anxiety caused by debt, and Julie says clients regularly burst into tears of relief when they share their story.

“For many, it’s a relief to finally admit that they are in trouble,”she says.

“I love my job and find it very satisfying,”adds Julie. “We are not there to judge anybody and we are just there to help.”

Satisfying work Julie