Most people try to tackle debt on their own. What these people don’t realize is that services are available to help you in the process of paying back your debt. Debt counselling is when an advisor evaluates your situation with the aim of bringing you back into control of your finances.
This process can help you get out of debt sooner, create a budget that balances, and stop your collectors from calling. Sure, you can try to go it alone, but why not use a debt counselling service to get back in the black?
1. Free Education
First and foremost, debt counsellors offer education. These materials are usually provided free of charge, and will help you understand your problems so that you’ll be in a better position to tackle them. Knowing and understanding the cause of your debt can be the first step in getting on the right track.
2. An Unbiased View
Debt counselling will give you an honest, unbiased view of your financial situation and provide a roadmap for working towards being debt-free. Your debt counsellor is a financial expert who can give you a new perspective on your finances and what it will take to reach your goals.
3. Create a Debt Management Strategy
Debt counselling will work with you to create a debt management strategy that works for you. Your counsellor will help you create a payback plan that allows you to still do the things you enjoy. It will be up to you to execute this plan, by securing a consolidation loan or debt settlement with a third-party company. Your debt counselling service will help you navigate this.
4. Make a Budget
Part and parcel with your debt management plan, your debt counsellor will also help you create a balanced for all of your other expenses. Debt management doesn’t work if you can’t spend your money anywhere else. Creating a balanced budget, with the help of your debt counsellor, will give you the best of both worlds—living life while paying off debt.
5. Stop Collection Calls
Using a debt counselling service can mean you stop getting those annoying collection calls. In many cases, debt counsellors will answer collection agencies on your behalf. So, if you’re sick of these calls, this is another reason to work with a debt counselling service.
6. Avoid Bankruptcy
Finally, debt counselling is a great way to avoid declaring bankruptcy. For most, bankruptcy is a last resort, that will affect your credit rating for seven years at least. Working with a debt counsellor can mean you avoid the lengthy process of bankruptcy, and safeguard your credit score.
Debt counselling won’t make your debt go away, but it can help you manage it better. These services can be very useful if you’re trying to resolve large amounts of debt and not making any headway. Every situation is unique, and your debt counselling service of choice will help you through this process, and learn to make the best decisions for your financial future.