Asking Debt Management Advice

Asking Advice on Debt Management

The prospect of asking for advice on debt management is intimidating to many consumers. You may have justifiable concerns about the credibility or intentions of a debt counsellor. You may have concerns about the outcome of your discussion with a debt manager, or you may be self-conscious about revealing the extent of your debts to a stranger. You may have avoided asking for advice for so long that you simply don’t know where to start with your debt financing.

Reliable Sources of Advice

Asking for assistance with debt management can be the first step to freedom from overwhelming financial burdens. The key to inquiring about debt management is to seek help from reliable sources. Friends, family members and co-workers may have advice to offer on debt management plans, Individual Voluntary Arrangements or remortgaging. However, their well intentioned advice may have little bearing on your own financial circumstances.

When it comes to seeking advice on debt management, look for an objective, unbiased expert who has substantial experience at helping consumers cope with debt. The counsellor you choose should have a thorough knowledge of debt management solutions, including debt management plans, IVAs, debt settlements, home remortgages. Your counsellor should have the expertise to guide you in the direction that’s most appropriate for your income, your assets and your financial liabilities.

Before recommending a course of action, a reliable debt manager will carefully work with you to evaluate your budget. You will discuss your income, your monthly outgoings, your unsecured debts and your secured debts. You will also review your assets, such as retirement savings accounts, home equity, automobiles and other vehicles. Only after a thorough review of your finances will a credible debt manager offer advice.

Debt management companies must hold a credit licence from the Office of Fair Trading in order to provide credit counselling services or arrange debt management plans. If an agency is not affiliated with the OFT and cannot confirm that it has a licence, seek advice from a more credible, licenced source. Many of the leading debt managers are also affiliated with the Debt Managers Standards Association, whose members agree to adhere to a high standard of ethics in their professional transactions.

Applying Debt Management Advice

Once you’ve identified a trustworthy source of debt management advice, keep in mind that you are under no obligation to follow any particular manager’s recommendations. In fact, you may improve your chances of finding a successful debt repayment plan by comparing advice from several objective sources. In order for a debt repayment plan to succeed, you must feel comfortable with its repayment terms and confident that you can keep up repayments according to the terms of the agreement.

To make a decision about debt management with confidence, develop a strong foundation of knowledge about your financial options. If you are well informed about your choices, you will be more likely to choose an approach that will be effective in your specific circumstances. Whilst many experts can advise you on your options, you will be responsible for making the final decision about how to repay your debts.

If you feel that a debt manager is biased or is pushing a specific plan, it is probably best to turn to another expert. Ultimately, you and your loved ones must decide which approach will work best for you. In some cases, a basic debt repayment plan may be perfectly appropriate, whereas other individuals may have greater success with an IVA or a consolidation loan. Asking advice on debt management is an important step, but you must choose an option that you can live with comfortably for a number of years.

Professional Assistance in Managing Debt