Weathering financial difficulties alone can be more unnecessarily stressful than it already is. Poor credit scores, outstanding credit under your name, and an overall bad financial foundation can debilitate what you can do with your life, dictating where you can and cannot live, the quality of products and services you can access, and so on. A debt advisor can be an invaluable professional for your current dilemma, guiding you towards making the right choices and helping repair finances. While majority of consumers will perceive debt advisory services to be an unnecessary expense, there are moments in life when this is the only viable option to take. Here are three of those life moments when you need to call a debt advisor.
Toxic Amounts of Debt
This isn’t the usual case of late payment on your credit card for a few months. Toxic amounts of debt accumulate over a protracted period of time, when payments become more and more difficult to keep up with and interest rates and late payment fees dent your cash flow. Although majority of debt advisors will work on commission, others can help you free of charge. Non-profit organizations can help you reconstruct your finances by assessing your finances in depth, constructing a new budget plan that takes into account your cash flow, and providing future tips and tricks on how to avoid ruinous debt. If not immediately corked, the toxic amounts of debt that you are trying to pay off all at once can lead to bankruptcy.
Finances are Out of Control
Consumers Alliance Processing Corporation said, “Regaining control over your financial life can only be achieved through understanding of what constitutes it and what helps/harms it.” Educate yourself regarding personal finance and taking a realistic, unbiased look at your financial choices, both in the past, present, and future. Books and eBooks are a great starting point, but they don’t always give the most relevant information possible. A debt advisor, on the other hand, communicates relatable and applicable information for your specific situation. There are two main options that debt advisors will offer you – debt consolidation and debt settlement. The distinction between the two are of vital importance to know so as to pick one that suits your financial situation.
Change in Career
Not all moments that call for a debt advisor are depressing and stressful. Sometimes, a debt advisor can help you reestablish finances following a positive change in your life, such as a raise or promotion at work. Bringing aboard the expertise of a debt advisor will help you clear out outstanding debt more quickly and then help manage your new cash flow to grow your net worth. This can also be applied to cases where the individual experiences a sudden windfall, such as an insurance claim, lottery winnings, or an inheritance. It can be tempting to control oneself financially, and having a debt advisor will keep you and your purchases in check. This is absolutely true for individuals earning a minimum salary of $75,000 and for families earning at least $150,000 since they have more cash to invest.
Although this seems like the perfect revelation that can finally restore balance to your financially chaotic life, this is real life. A realistic scenario is you looking for a financial advisor and swooning from the expensive service fees they charge, which range roughly between $1,000 to $2,000 for a comprehensive plan. Nonetheless, when you compare costs from benefits, the latter ultimately triumphs. For instance, when you decide to file for bankruptcy, a debt advisor can help validate whether or not this is the most ideal option for your case, and if so walk you through the process of filing for bankruptcy.