Debt Management Counselor

Sitting in front of the debt management counselor for over an hour, it became obvious to her that the couple she was counseling was in denial and it was not a river they were in. The husband was an avid fisherman and owned a twenty thousand dollar boat and trailer and needed a large SUV to pull it in and out of the water. The wife has amassed a small fortune in dolls from around the world that she had collected as a hobby. The couple had over fifty thousand dollars of credit card debt plus two car payments but was unwilling to unload any of their stuff. The result was that they ended up arguing almost daily about having no discretionary money because of massive monthly credit debt payments. A marriage counselor might be in order later to deal with how they talked to each other, but for now, a debt counselor was exactly what the two needed.

Marriage experts are quick to point out money is the number one reason for marriages breaking up. Almost all would admit that daily communication is at the root of so much hot button marriage friction, but in many cases it's money problems that begin the communication breakdown. But a debt management counselor or coach is not just for couples. This professional is also needed for anyone who is struggling with how to manage mounting piles of choking credit payments and a distinct case of income stagnation. And since it is estimated that seventy percent of all Americans are living pay check to pay check, there is a very real chance that borrowed money repayment is a primary reason why.

Any counselor, including one from the credit management ilk must convince the client that the plan being drawn up for self-improvement really is the best plan for his welfare. This is especially true for a debt management counselor because financial stability and success cannot occur without a long term scheme in place. And long term means hard core commitment to a daily routine much different from what was practiced for so long. In the case of the couple not willing to give up their toys, the debt counselor would have to recommend a more drastic measure, credit account consolidation. Those who hang on to possessions may be revealing the shallowness of their lives. Jesus made it very clear that what is down in the well comes up in the bucket when He said, "For where your treasure is, there will your heart be also." (Luke 12:24)

When a person agrees to counseling, it can be a very big step forward. After all, if Mary Jane has to drag her husband Big Jim to a debt management counselor what chance does the counselor have of succeeding? One of the real foundational steps in going to counseling is finding the right coach. If Big Jim finds out that the counseling professional is a Jets fan like himself, there may be some hope for a real connection to occur. Consequently, Mary Jane will have to be very aggressive in researching to find the professional that will ring her husband's chime. That search will also entail finding someone that others have recommended. Attila the Hun will probably not ring Mary Jane's chime either.

A trusted debt management counselor will provide several options for her clients. Since profitability is in the credit account consolidation business, the temptation for the counselor will be to push that option first. Lots of counseling companies are non-profit but even they, through offering debt management solutions with agreements among creditors make a profit for their services. However a debt management counselor with a true interest in the client will also offer classes and educational opportunities to enhance a client's awareness of successful financial planning and reprioritizing. An early sign of encouragement to a potential client would be the willingness of the professional to offer alternatives to borrowed money account consolidation which is a very close relative of chapter thirteen bankruptcy proceedings.

Your friendly neighborhood debt management counselor will more than likely not have training in actual clinical counseling methods. Many websites touting credit counseling call their counselors certified. The clear meaning of that term means the counseling person has been trained by the company to espouse the company line. This training will not include gaining expertise in dealing with certain personality disorders or marital problems so leave the discussion about the merits of Prozac and dealing with a nagging husband at home. But if a person is having trouble sleeping at night worrying about the bills, or if a husband and wife aren't talking because credit has choked out all the passion from the marriage, the credit counseling can deal with the heart of the problem.

Debt consolidation that a counselor will probably offer is a method by which the client's creditors agree to much lower interest rates, usually on credit card accounts and other revolving accounts. Some installment loans may also be subject to lower interest rates agreements but the good news is if a client stays with the program for the full term of the program, all debts can be dissolved within five years. The downside to this plan is that fewer than fifty percent of all clients stay with the program and eventually slide back into high debt spending habits. A good debt management counselor will stay in touch regularly with each client to head off any inclinations to end good money practices. Oh yeah, the couple with the boat and dolls? She got mad and went to stay with her mother.

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