Xavi has less couching experience when he arrived at Barcelona but things at then were not as disorganized as it is now. The present situation in Barcelona is going to give Hansi a sleepless nights before he could be able to put things into order. The financial crisis inherited from the previous management will deprive him of having the right players he needs to work with.
Competing with Madrid? Perhaps, in the next two to three seasons we may see something like that again but definitely not this coming season judging from situation of both teams at the moment. The excitement of El Classico has been diminished long before now and worsen since the exit of Ronaldo and Messi.
Financial problems are not the result of Xavi's work, but during his coaching several players were bought, which definitely led to an increase in debt, and there were problems before Xavi. To get out of debt you need to approach this issue comprehensively, try to do without new transfers, and try to achieve better results in order to receive bonus payments. I think that Xavi has brought order to Barcelona, before his arrival everything was much more chaotic than it is now.