I am a professional credit counselor and my job makes me meet so many people everyday who are burdened with heavy debts and need help in coming out of that. With my counseling skills, which is formally known as credit counseling or debt management counseling I try to help people with various debt management plans which helps them take care of their debt in a more comfortable way.
Primary things that I have to do
As a part of the debt management counseling I have to look at the income structure of the clients and also evaluate their cost of living. At the same time I get the list of all the creditors who owe money from my client. The purpose of getting all these details is to calculate an amount that the client would be able to pay every month. Once this amount is deduced, I ask my clients to pay that to my agency and then we take the responsibility to divide and disburse that money to the different creditors.
An important aspect of debt management counseling is the evaluation of the cost of living of the individual. I have to check all financial transactions, which includes credit card activities as well. As a counselor, the expectation from me is to provide the best possible solution to the clients hence I have to understand how much money would the client be able to pay out every month.
Helping the clients who are in deep trouble
At times we get clients who are sunk in debts and to worsen their situation, they are not in a financial condition to pay off their debts. As a result, the creditors take a toll on their happiness and that is when they come to us to get some help in the form of debt management counseling. For these types of customers, we try to arrange for payday loans or bad debt loans so that they get some funding to get out of the high interest credits first. Debt consolidation is also something that we have to offer the clients so that they consolidate all their debts under one banner and then pay off the debts.
There are customers who are almost on the verge of bankruptcy because their business has not worked the way they had planned and they have huge debts on their head to be cleared off. Under such situations, my responsibility as a debt counselor is to analyze the client’s financial condition very minutely to determine if bankruptcy or liquidation is the only way out. We try to avoid bankruptcy as much as possible as that impacts the credit score of the individual. However, if there is no way out, we help the client in declaring bankruptcy and do away with the necessary legal formalities that need to be done.
In my long career of debt management counseling I have seen so many people struggling just because they could not manage their debts properly that I really feel that one should take calculated steps when it comes to borrowing money or spending money. It is always better to be happy without any burdens than being sad and worried with hordes of worries and tension about the debts.