What does a debt counsellor do and how can they help you stay in control of your finances and beat debt for good? Find out about how debt managers and counsellors can get your finances back in the black.
What Is A Debt Counsellor?
What qualifies as a debt counsellor in Australia?
A debt counsellor is someone who specialises in financial services revolving around credit and lending. They are financial planners who are able to help you to reduce your debts through a number of proven methods, helping you with complicated form, finding you the best deals and negotiating on your behalf. When you are struggling with your finances it is always recommended that you first talk to a debt counsellor to see if they are able to help you to avoid bankruptcy and part 9 debt agreements.
Bankruptcy and part 9 debt agreements are two ways of getting out of debt that have serious consequences for you and your loved ones. Bankruptcy is the most intrusive with assets seized, homes repossessed, travel restricted and business and employment effected. This can have a huge emotional toll as well, with a number of your possessions taken from you, it can leave you feeling vulnerable and out of options. A debt counsellor can help you with alternatives to bankruptcy that don’t impede on your life as much.
There are several ways a debt counsellor can help you with your debt problems, but their most important and best tool is their connections in the industry which allow them to negotiate with your creditors to get you the best deal possible. There is no reason anyone should enter into bankruptcy before negotiating with your creditors to try and figure out a deal that is beneficial to both parties. Bankruptcy has downsides for both creditors and debtors, which is why a deal can often be struck with a reduced amount for you, the debtor, to pay.
How Can A Debt Counsellor Help You Clear Your Finances?
What are some of the methods a debt counsellor can help you to implement?
As mentioned above there are several ways a debt counsellor can help you clear your debts. Getting out of debt doesn’t have an easy fix, however, if you follow what a debt counsellor says then you will make it a lot easier to completely pay off your debts. There are a number of things you can do to make the process easier on yourself, the main one being open to your debt counsellor’s suggestions and ensure that you are committed to getting out of debt. Below are some of the ways a debt counsellor can help you with your debts:
A mortgage refinance is when you renegotiate the terms of your mortgage to get a better rate or to access the equity in your home. It is a useful tool for combining your debts into one large debt with a lower interest rate across your debts. It’s also very useful for negotiating with creditors and getting the best deal possible from them. This can often be the basis for many of the other methods debt counsellors use to get out of debt.
Debt consolidation is combing all your debts to make one easier payment, either through a loan or mortgage refinance. The idea is that you take out the amount you owe to all your creditors as a loan with a lower interest rate. After you have used that money to pay off your debts with high interest, you are then left with a debt that is easier to repay due to the lower interest rate. It is a tool for debt negotiation as well, with many creditors often accepting less than the total owed for full, upfront payment. This means that you have a lower interest rate as well as less total debt overall.
Debt counsellors are able to negotiate with your creditors and get you a better deal, aka, a lower total payment, a better interest rate and more time to pay off your debts. Debt consolidation and mortgage refinancing can be used to enhance your bargaining position. Your debt counsellor will usually have connections in the industry that make it easier for them to negotiate a deal. Offering things like full upfront payment are great ways to get you more time to pay off your debts as well as lessening the load of the debt.
Informal Debt Agreements
At the end of all the negotiations comes an informal debt agreement, which is similar to a regular debt agreement without the legally binding element. This means that if your informal debt agreement isn’t agreed to, then your creditors cannot immediately force you into bankruptcy like with a part 9 debt agreement. This is the end game for negotiations and allows you to begin the process of paying off the debt.
Debt Counselling And Budgeting
What happens after a deal has been struck with your creditors?
After you have struck a deal with your creditors, you will then start the process of paying off the debt. Whether this is through more repayments that you are able to keep up with over time, smaller repayments or a lump sum payments to the majority of your creditors though debt consolidation, you will need to take a hard look at your budget and spending.
This is where your debt counsellors financial planning experience will come the fore. Planning a budget that is flexible enough so you can stick to it is an art. If your budget is to stringent then you are very likely to fail, as unexpected situations can pop up or you can get discouraged. The best budget is one that allows for flexibility while still saving money. Your debt counsellor can help you to develop a budget that suits your finances, your debt and your lifestyle. A good budget isn’t about cutting everything you love out of your life, it’s about being smart with your money and realizing when to spend and when not to spend.
Once you have a budget and an informal agreement, your debt counsellor can act as a liaison between you and your creditors, ensure that you are paying on time and checking to make sure you are following your budget properly. They will also make sure your creditors are upholding their end of the bargain with no further legal proceedings.
Get Financial Advice Today!
Contact Get Out Of Debt Today for financial planning and debt advice
Get the financial advice that gets you out of debt with Get Out Of Debt Today! At Get Out Of Debt Today we go the extra mile to ensure that you get the best possible deal. We have a number of connections across the community and are able to reduce your debts with no defaults or black marks against your name. We avoid bankruptcy, insolvency agreements and part 9 debt agreements to ensure that your credit rating stays unaffected.
If you are one of thousands of Australians suffering from the stress and anxiety of debt then call (02) 9011 7919 or fill out the form above to be contacted by one of our debt consultants. Our debt counsellors will take special care with your case, offer a free consultation and financial assessment to help you to find the right option for you.
Some of the services provided by Get Out Of Debt Today can see your debt reduced significantly and paid off in no time at all. Some of those services include:
Stop the calls from debt collectors
No defaults or black marks
Tailored budgets and debt management solutions
Protect your credit rating
Negotiations with your creditors on your behalf
Debt consolidation and mortgage refinancing help
Get more time to pay off your debts
Reduced interest rates on your debt
Reduced total amount of debt to be paid
An alternative to bankruptcy and part 9 debt agreements
Get Out of Debt Today: An Alternative to Declaring Bankruptcy & Insolvency
Finding your way out of debt can often be an overwhelming task – you are most likely stressed (or at least should be), scared, and probably out of your depth with the wealth of legal jargon.
Get Out of Debt Today can help you. They have wiped off up to 90% off some clients debt without entering into any form of debt agreement or filing for bankruptcy. Fill out the online form at http://getoutofdebttoday.com.au to find out more and receive a tailored plan of attack for your unique circumstances. Get Out of Debt Today.