Debt Free – Trip of the Day – The Difference Between Debt Counseling and Debt Management – It is HUGE!
I get scared for the many hard working, trusting individuals who just need a hand getting a handle on their debt and to learn or change budgeting tactics. As I read post after post, blogs, newspaper articles, money management sites, I get this horrid foreboding feeling. Why? Get to the point right? Americans are so overwhelmed with debt and stress, overloaded with ads, articles, and BS that is all designed to get your money, that we have begun to miss meaning. We are being desensitized by overwhelming amounts of information, trickery, and sales tactics. Anything to catch our attention and keep it long enough to get you to punch that credit card number in. I am afraid because we have become numb to what things actually mean.
Debt Counseling: Seeking assistance in determining debt repayment tactics. Preferably ethically, safely, timely, and easy enough to follow that you won’t become discouraged. These organizations tend to allow you to manage your own debt. What you are paying (if there is a fee) for isadvice from “professionals” in the financial field. totiating balance reductions, payment management, and who you will allow to act on your behalf in order to clear debt. For a fee, and possibly even paid by the credit companies to get you signed up. Yes, the very people you may be paying for this service could also work for a credit card company you owe money to. Hmmmm.
There are pros and cons for both types of programs. Variations of the ideas are limitless. It can be overwhelming and Of course ensuring you have checked the background and references of the organization goes without saying but I can tell by looking at the media that is swirling around regarding these two forms of debt management, worries me because it can be difficult to see the difference. The ads look similar, information looks the same, and I think that companies are doing that on purpose so that they do not shy away from the unknown or sense the difference. Choose wisely and under the advice and guidance of trusted people such as your CPA.
Please make sure you are reading every bit of the information a company provides you. The fine print and the even finer print, read it all. Keep a clear mind when considering any company. I can understand that the phone calls from the bill collectors are wearing you down, the stress in insane, and you are fighting with everyone just out of frustration. But be aware that when you contact one of these companies, they have been hired to do a job and that job is to sign you up. They could make promises that are impossible to deliver, they could badger until your already weakened self restraint and common sense disappears. The not so moral companies that are just out to make money know that you are already vulnerable. Lets face it, we want to hear that there is an easy way out of the mess, so once the pressure is on, we buy into what they are selling, hoping that there is a minute chance that there is any truth. But in the back of our minds, knowing the road is going to be rough for a long time.
Please, make sure you are fully understanding what someone is trying to sell you. Know your rights, and if you don’t, consult with the local agencies, most will direct you and may even offer you more help. Know the difference between debt counseling and debt management and seek help only from those proven to care about our well being, and able to provide proof of service to others in the same situation as you. I am working to bring a few articles together that will help understand the different programs, what the implications and repercussions are, and what steps to take to ensure you are working with a reputable organization.