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Understanding the Role of the Debt Consultant


Some people will do everything they possibly can to avoid owing other people money. Others accept that, sometimes, it may be in one’s best interest to obtain a bank loan or to seek credit when purchasing some big-ticket item. That said, many people who borrowed money during the first few months of 2020, have since found themselves unemployed as a consequence of the COVID-19 lockdown. Some will have needed to seek the support of a debt consultant to cope with the problem of settling their credit accounts.

Unfortunately, not everyone in this position will take the step of seeking professional help, while others are not even aware that it is available. Often, a reluctance to approach a specialist stems from the mistaken belief that their role is a disciplinary one and that they can expect to face criticism for their irresponsible spending. While it is understandable that few people welcome a telling off, this is not the role, and it is certainly not the habit of a professional debt consultant to be critical of their clients. Instead, what you, as a client, can look forward to is positive support from an experienced specialist who is both empathetic and skilled in devising solutions to financial problems.

That, however, does not mean that you will not need to display a little self-discipline. The process of clearing your indebtedness requires that, until it is complete, no further credit will be available to you and you will need to refrain from making all but essential purchases. Your debt consultant will require full details of how much you owe and to whom and will have the authority to access all relevant information regarding the state of your bank accounts. Only once they have this information, can the process of developing a viable solution begin. The next step is to inform the credit bureau and the relevant stakeholders that you have agreed to a debt review.

The next task for your debt consultant will be to contact your creditors. The goal is to negotiate a repayment plan that will satisfy the credit providers, and which appears affordable to you. Sometimes, when there are multiple creditors and the total amount owed is considerable, debt consolidation may be the best option. In such cases, a third party will purchase the debts at a discounted price and recover them as a combined, but affordable debit order or, with a garnishee order, directly from your salary.

Before implementation, your debt consultant must first check that you are happy with its terms and that complying with them will not cause undue hardship to you and your family. If you agree to the terms, the process can proceed, and you will have taken the first step on the road to a debt-free future. At the end of that road lies the chance of a new life.

While it is unlikely that you set out to incur debts that you can never repay, it can happen to anyone. It is, therefore, comforting to know that expert help is on hand. If you or someone close to you ever needs such support, contact an experienced and understanding debt consultant at FreeMi.