How advisers can show true value amid coronavirus crisis

Explain how advisers can reassure worried clients
Identify ways in which advisers can spot vulnerable clients
Identify steps clients can take to start addressing debt

CPD

Approx.30min

Andrew Kerry, financial solutions manager at the Stepchange Debt Charity, sets out the most important things you can tell a client who is struggling with debt.

Firstly - if you can continue to pay, then do continue to pay. But if you can’t, check out the emergency advice available and follow these steps:

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Create a budget. Creating a budget is the first step towards taking control of your finances and getting your situation back on track. Budgeting helps you to see where your money is going, so it’s easier to make sure that you’ve covered all of the things you need to pay. 
Prioritise your spending. You can prioritise the things that are really important and you also know who to ask for payment holidays.  Check online as to whether a payment holiday is an option, but it could help you stretch your budget in a time of need.
Stabilise your income. If your job is at risk, ask your employer to 'furlough' you. Government, through the Coronavirus Job Retention scheme, will cover 80% of your salary up to £2,500 per/month. This scheme means employers can choose to put staff who can't work “on hold” - and then the Government will cover their salary until things return to normal. Think of this like your job being put on standby. You are on standby during the crisis, and then when it's over, you return to work and get the economy running again at speed.
Take a break. Finally - If you are struggling to pay your mortgage, lenders will allow you to take a break on paying for 3 months. This is important as your mortgage may be your single biggest item of expenditure each month.  Not paying this and moving your budget around to cover other commitments may be enough to keep your income and spending balanced over the next few months.

John Somerville is head of regulatory relationships at The London Institute of Banking and Finance

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How advisers can show true value amid coronavirus crisis

What do the set of government measures to support those impacted by the virus not include?

According to John how can advisers reassure their clients during this time of crisis?

Pick the odd one out. What are the first signs that might indicate a person is vulnerable?

True or false, John Somerville says, with markets being so volatile, accessing capital from investments is unwise where the markets have fallen so low.

Pick the odd one out. According to Andrew Kerry the most important things you can tell a client struggling with debt are to:

Why is it a good idea to apply for a mortgage payment holiday of three months?

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