Money advisors help people find solutions to debt problems. They do this by carrying out income maximisation checks - ensuring that people are claiming all the benefits and tax credits they are entitled and supporting them to deal with creditors (people who they owe money to).
This includes setting out options for the debtor (person who owes the money), which may involve agreeing to pay creditors through a Debt Payment Programme, or writing off debts through bankruptcy (sequestration).
Money advisors usually work for local authorities, for example, in the Trading Standards or Social Work Departments, or in voluntary agencies like the Citizens Advice Bureaux.
Advisors may also be attached to employability programmes or work with organisations such as housing associations. The local authority is responsible for deciding how to provide services, reflecting the circumstances in its area.
Money advice has traditionally been delivered face-to-face with the client.
The Scottish Government funds national infrastructure for the money advice sector. This includes training for
- money advisors
- accreditation to deliver the Debt Arrangement Scheme, and
- specialist advisors to help front-line advisors on more complex cases (second tier support).
The Scottish Government has developed and promoted the Scottish National Standards for Information and Advice Providers, which cover housing, welfare rights and money advice.
The Scottish Government is also funding new ways of delivering money advice by telephone or email, with National Debtline and Citizens Advice Direct. Money advice can also be accessed on-line.
The charities Scottish Debtline and Payplan also provide on-line and telephone debt advice.