The Debt Advice Diaries

There are several frustrating parts to being a debt adviser, but broadly they boil down into three categories: frustration with clients, frustration with creditors, and frustration with the rules, which is typically insolvency. This particular story has a tiny bit of frustration with the rules, a bit more with the client, and an awful lot with the creditor.  Several months ago, I helped a client to set up a payment plan to a bailiff company collecting unpaid council tax (well, overpaid council tax support - but it's treated the same). I had directly agreed this with the bailiff company, and impressed upon the client the need to maintain his payments, ideally through setting up a standing order. He did not set up a standing order. I open my emails after the Easter weekend to find a picture of a bailiff letter. I call the client. "Have you kept up with the payments?" "I thought I had but when I called the number they said I missed one in March. I've gone on their w

Advisers don't work in a vacuum. We're somewhere at the intersection of creditors, the benefits system, housing providers, other charities, the financial services system, the legal system, and providers of essential services like energy or water. But it's not at all clear that those other organisations have yet woken up to the utterly catastrophic scenario that in coming down the tracks. Some have at least taken steps, however inadequate, in that direction. The DWP is stopping new Fuel Direct applications unless the customer has requested it (but doing nothing about existing applications... and I worry that this'll just mean a quicker move to installing pre-payment meters and subsequent self-disconnection). And the British Gas Energy Trust has launched a new scheme for its customers who have relatively low debts (and so, presumably, are likely to be newly in energy arrears). But like so many other charitable schemes, your application will need to show how you'll ke

The fact it's been snowing on the day energy prices shoot up by 54% really is a bit much – and every advisor I know is struggling with what to say to clients for whom there is no real answer to the question 'How do I afford this?'. However much we try to say to ourselves that our job isn't to 'rescue' people, we are in this profession because we want to help. And when we can't, it really takes an emotional toll – not to mention the toll on clients who have taken the often difficult step of asking for help only to discover how limited that sometimes is. But it's not been a bad week. We get a couple of good wins for clients, which is a much-needed morale boost, and gives those clients a bit of breathing room. All that remains is to cross our fingers that the government – and priority creditors like energy companies, landlords, and councils – take this crisis seriously. For the government, it's clear that much, much more action is needed to protect

At the end of a phonecall with one of my clients, she asks if she can put her friend on. Let's call her Justine. Justine's not working, is on disability, and has some money problems - we work out it's about £6,000 of debt, mostly made up of Council Tax, water, and credit cards. This is a pretty verbatim transcript. __ Client: I spoke to some insolvency organisation but I'm confused. Adviser: Hmm. Did they talk about your income and your spending? Client: Yeah. They're having some sort of meeting this week. I don't really understand it. Adviser: Did that budget say you've got money left over? Client: Yeah, about £65. Adviser: Does that sound right to you? Client: No, they sort of made it say that. Adviser: Right. This is probably what's called an IVA - you'll probably be expected to make that payment for five years. I don't know for definite until we've talked a bit more, but it's very likely you can get what's called a Debt Relief O

A fairly standard week this week, albeit with the looming horror of 8% inflation and rumours of energy bills going up yet again in October. Debt advice isn't a solution to this. Even if you manage to get a DRO, they'll just build up again - and you'll quite probably have cut off any access to credit that could help keep your priority debts from accruing. And you can't get a DRO for another six years. Anyway. The highlight of the week was finally getting somewhere with one of my most vulnerable clients, by providing Housing Benefit with evidence of her son's receipt of Universal Credit. He'd previously been self-employed, with unfortunately absolutely no proof of his earnings - but at least we can get her Housing Benefit resolved since the point he went onto UC, and staunch the build-up of arrears that's been going on since last April. This client has so far been remote-only due to her health problems, and her mental health has meant gathering the evidence ha

It's sometimes very difficult to remember that success as a debt adviser isn't solely defined by the outcomes you achieve. Those outcomes are, of course, the reason I do the job. The scared and confused woman whose Housing Benefit you get back in payment, along with a DHP towards the arrears. The woman who's been sectioned twice in the last three years you shepherd through bankruptcy. The refugee who's just relieved to know he can't go to prison for falling behind on his water bill. And of course all those cups of coffee. But often - all too often - these things are out of my control. Sometimes, the reason for that is with the client. Not necessarily the fault, but for many things there is a lot of information I need before I can make progress. Reference numbers, documents, evidence of this health condition or that non-dependent's income. And for some clients that's just very hard to find and provide. In other cases, the client's situation is just dire,