When you’re drowning in debt and can’t see a way out, looking into debt counseling might be your best option. Debt is a common problem for Americans and you are not alone. Most people haven’t had any experience with debt counseling, and may have questions as to how it works. We can give you a basic understanding of what to expect. Here are a number of basic questions one might have before they decide to pursue debt counseling.
What Does a Debt Counselor Do?
A debt counselor begins by listening to a client and learning what their ultimate financial goal is. Is it to save money? Is it to get rid of debt? Is it to curb overspending? Once a debt counselor understands a client’s goal, they can help them reach it by identifying and correcting their issues.
What are the Most Common Money Issues?
The most common reasons people seek debt counseling are:
- Credit card debt (or other unsecured debt)
- Secured debt (for example auto loans or leases)
- Out of control bills
- Personal budgeting issues
At What Point Do People Seek Debt Counseling?
The point where people feel they need to seek out debt counseling will vary. Someone might notice they can barely pay their monthly bills. Someone with $3,000 in debt may feel so overwhelmed, they have trouble sleeping. Essentially, when your financial situation starts to weigh heavily on you and affect you in a negative way, it is a good time to seek debt counseling. Recognizing that you are having issues with debt and seeking help is a good first step towards correcting your problems.
When Should You Get Help?
Waiting until you are no longer able to pay all your bills each month makes your problems much harder to fix. If you think you are getting to that point, you should seek out a debt counselor before things get any worse. It might seem obvious to get help before things get bad, but many people don’t put much thought into their financial situation until it becomes a problem.
What Does a Debt Counseling Session Look Like?
A debt counseling session typically starts with the client giving information about their financial situation. The counselor will ask questions about the client’s household, employment status, and spending habits. Once the debt counselor has a good grasp on your financial situation, they can begin drawing up a plan of action. Creating a budget with their client is one of the most important things a debt counselor can do to help control debt.
Interested in Debt Counseling?
If financial problems are causing you stress and getting in the way of your life, contact The Alexandrite Group today to schedule a consultation. We’ll help you get to where you want to be.