A Debt Management Consultant is Often a Credit Counselor

The path to a debt free life can be difficult to follow, but debt management consultants can make finding and sticking to the best path for your situation easier to accomplish. Debt management consultants, also referred to as credit counselors, are specially trained to handle the problems of those in debt, and can be immensely helpful when negotiating with creditors.

Most debt management consultants provide assistance for a small fee, but there are agencies that offer their services free of charge. A debt management consultant’s duties include:

  • Giving overwhelmed borrowers emotional support.
  • Developing a budget with the client.
  • Advising clients on the various ways in which they can eliminate their debt and stay debt free and helping them choose the best option for their particular circumstances (i.e. debt negotiation, debt settlement, or debt management programs).
  • Giving borrowers realistic expectations for their negotiations with creditors and the effect such negotiations will have on their credit score.
  • Assisting borrowers in obtaining the best possible settlement amounts and terms.

While there are many reputable credit counseling agencies in existence, it is important to be on the lookout for scam artists when choosing a debt management consultant. It’s never a good sign if a consultant: makes the initial contact by letter, email, or phone; the demands outrageous fees or asks that you pay upfront; or refuses to send you additional information upon request. To ensure the reliability of debt consulting agencies you can contact your local Better Business Bureau to determine their rating and check the organization’s website for additional information. A personal lawyer can also assist in your search for a consultant, but we at Debtors Unite suggest working with Accredited Financial Counselors, whose services are available from our partner credit counseling agencies.


Sources:

Bailey, Jennifer Debt Management Consultants. EzineArticles.com, 5 Jan. 2006. Web. 19 Oct. 2011
<http://ezinearticles.com/?Debt-Management-Consultants&id=123599>.

Debt Management Consultants. 2011. Web. 17 Oct. 2011 <http://www.dart-
creations.com/BI/debt/Debt+Management+Consultants.html>.

How to Avoid Shady Debt Management Consultants. 2011. Web. 18 Oct. 2011
<http://www.filingforbankruptcyonline.com/resources/bankruptcy/debt-relief/how-avoid-shady-debt-management-consultants>.

Wendy Clay

Wendy Clay

Wendy Clay is a Virginia Community College System graduate and a current undergraduate at the University of North Carolina. She is pursuing a degree in public health with a minor in exercise and sports science and plans to attend medical school upon the completion of her degree. She has diligently served those around her for many years as a tutor for rural school children and as an advocate in the fight against hunger in her community and around the world.

At The University of North Carolina Wendy plans to actively participate in a student group, Health Focus, which will enable her to use her knowledge and love for health and nutrition to educate youth in the Chapel Hill/Carrboro area. She also hopes to promote voter registration amongst her fellow students.
Wendy Clay