Can a Financial Advisor Help with Debt? Here’s What You Should Know
Why Debt Advice Matters Now
Debt remains a serious issue for many people in the UK right now. The Money and Pensions Service (MaPS) found that about 8.1 million adults (15 %) needed debt advice in 2023. MaPS+1
Another 12.6 million adults (24 %) face financial stress — they struggle with bills or borrow using high-cost credit. MaPS+1
Only a fraction of those people actually get help. In the 12 months to May 2024, just 3.2 % of adults used a debt-advice or debt-management service. FCA+1
That gap shows many people carry debt problems alone — often with growing stress and limited chance of improving their situation.
If you’re in debt, you need a clear plan. A financial advisor can give guidance. But you should know what such help can — and cannot — deliver.
What a Financial Advisor Can Do for Your Debt
A financial advisor can provide useful support when you have debt. You get benefit in several key areas:
You get structure and clarity
A good advisor helps you map all your debts: credit cards, loans, mortgage, utilities, overdue bills. Then they show you total interest, monthly payments, and how long it takes to clear everything. You see the full picture.
They help you build a realistic budget. They account for living costs, income, and debt repayments. That helps you avoid overcommitting monthly income.
You learn debt-management strategies
Your advisor can suggest practical debt strategies. They may show you how to:
- Focus on high-interest debt first (like credit cards)
- Consolidate debt or refinance if that lowers interest
- Negotiate with creditors for payment plans
You get guidance tailored to your circumstances — not generic tips.
You get accountability and discipline
Talking through your finances with a professional keeps you accountable. You get support and structure. You avoid ignoring debt or delaying repayment.
You receive advice on saving and building emergency funds. That reduces risk of falling back into debt when unexpected costs arise.
You receive help with credit-score impact
A financial advisor can guide how to handle missed payments, renegotiate debt, and plan repayments. They help you avoid actions that worsen credit score.
They also advise on avoiding high-cost credit traps or payday loans that make debt worse.
Where a Financial Advisor Has Limits
A financial advisor can help a lot — but not solve every debt issue. You must know the limits.
They can’t eliminate debt for free
Advisors don’t erase debt. They help you plan and manage it. You still need income, discipline, and time. If income stays low or expenses stay high, debt stays.
Their advice depends on your honesty. You must share your full financial picture — income, expenses, contracts, debts. Without full data, advice stays limited.
Some debt-advice services get overwhelmed
Even free or low-cost advice services see demand. The Citizens Advice reports that many people who ask for free debt help can’t get timely appointments. Citizens Advice+1
If you wait months for advice, debt interest or penalties may grow before you act.
Not all advisers specialise in debt
Many financial advisors focus on investments, retirement or savings. They might lack training in debt restructuring or negotiation. They help most when they have debt-management expertise.
Some advisers charge fees. That adds to your financial burden. Always check costs before committing.
When You Should Seek Professional Debt Help
You should consult a financial advisor (or debt-specialist) when you meet one or more of these conditions:
- You have multiple debts (credit cards, loans, arrears, bills) and lose track of them.
- You struggle to afford minimum payments and risk falling behind.
- You receive letters or threats from creditors or debt collectors.
- You feel overwhelmed and uncertain how to act.
- You lack savings or a contingency fund for emergencies.
If these apply to you, professional help can guide you out.
What to Expect in a Debt Advice Session
Here is what a good debt advice session looks like:
- The advisor asks for full income, expenses, and debt details.
- The advisor lists all debts, their interest rates, monthly obligations, and total owed amount.
- The advisor draws a repayment plan: prioritise high interest, set monthly payments, build buffer for emergencies.
- The advisor suggests cost-cutting on non-essential spending.
- The advisor helps negotiate with creditors or consolidates loans if appropriate.
- The advisor reviews progress regularly and adjusts the plan as needed.
This process gives you control and hope.
Expert Viewpoints on Debt Advice
“Debt advice can help people regain control of their finances and reduce stress,” says a debt expert from the Money and Pensions Service. MaPS+1
A financial services study notes that only a small fraction of people ever access advice — even when they need it. www.cognizant.com+1
These findings show the real value of advice — but also how many miss out on support.
How to Choose the Right Advisor
If you decide to hire a financial advisor for debt help, use this checklist:
- Choose someone who advertises debt-management or debt-advice services. Avoid advisors who focus only on investments.
- Ask about fees upfront. Ensure you know what you pay.
- Check their credentials and reviews. Ask for a track record with debt help.
- Make sure they listen. They should ask for full financial details, not push financial products.
- Consider using free services first (non-profits, charities or government-backed debt advice) if money is tight.
What the Data Tells Us
- The 2024 data shows UK adults using debt advice or debt-management services increased slightly to 3.2 %. FCA+1
- Among those who used debt-advice services, 61 % said their debts became easier to manage. Hartey Wealth Management+1
- The gap remains large: an estimated 8.1 million people need debt advice, but most never access it. MaPS+2moneywellness.com+2
These numbers show debt help works — but few people use it.
FAQ
Q: Can a financial advisor help me if I only have one credit card debt?
Yes. They help even with a single debt. They show you how fast you can clear it and how to avoid future debt.
Q: Is debt advice always free?
No. Some services are free (non-profits, charities, government-backed). Others charge a fee. Always ask before you commit.
Q: Will getting debt advice affect my credit score?
No. Getting advice alone does not harm your credit score. It does not show up as a negative mark.
Q: What if I cannot afford a financial advisor’s fee?
Start with free advice providers. Many charities, non-profits, and government-backed services offer support.
Q: How long does debt help take to work?
It depends on your debt size, income, and discipline. Many people see real improvement within 6 to 24 months.
Q: Can an advisor erase my debts or negotiate discounts?
They cannot erase your debt. They might help negotiate payment plans or reduced interest. Actual debt reduction requires creditor cooperation and your regular payments.
You face a hard situation when debt overwhelms. Getting help makes sense. The right financial advisor helps you build a plan, reduce stress, and regain control. Use advice wisely. Act today.