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Debt Management Consultant

The job of a debt management consultant is to devise a plan to help those drowning under a sea of debt to come up for air and survive.

Debt reduction companies, debt negotiation services, and debt relief programs can also do a good job of helping you get out of debt, but their services are more generic in nature. Debt management consultants, on the other hand, work especially for you.

How a Debt Management Consultant Works

The debt management consultant goes about performing his job in a number of ways, depending on what is required by the circumstances.

For example, if the client is thousands of dollars in arrears on his credit card payments, has just lost his job, is having trouble even paying for his utilities, and is on the verge of bankruptcy, the debt management consultant may determine that debt negotiation is necessary and put together a plan to contact all of the client’s creditors to see if he can negotiate the amounts of money owed down to an amount that his client can pay. If debts cannot be negotiated, the consultant may determine that bankruptcy is the best option and may initiate the proceedings for you.

Learning to Be A Debt Management Consultant

Students take on the role of financial planners and learn how maintaining a personal budget can help them to reduce their debt.

If, on the other hand, the client has thousands of dollars of credit card debt, but is working at a full time job and simply wants a way to get his debt under control, the debt management consultant will come up with a budget and a plan to do just that.

In other words, a good debt management consultant has a wealth of knowledge and resources at his fingertips and is able to put together a custom plan designed especially for your debt situation. If he is part of a debt management group, he will have even more resources to use.

Prices vary depending on the market, but generally, a debt management consultant may be priced higher than a specific dedicated debt reduction service such as debt consolidation, debt negotiation, and so on. The reason is a good debt management consultant needs to have command of a greater number of financial disciplines. In fact, if you already know what type of service you need to get out of debt, you may as well contract with that service directly. If you don’t know, however, and you need help in figuring out where you need help, that’s when you need a debt management consultant.

The biggest challenge in hiring a debt management consultant is weeding out the good from the bad. The best way is to get a recommendation form someone you trust. This doesn’t necessarily have to be a friend, it could simply be a name brand financial advisor who has credibility in the industry.

Debt Management Consultant or Debt Negotiation Service?

A debt management consultant can help you to legally eliminate credit card debt in a much safer manner than the typical debt negotiation service. Some of these services will still leave you with excessive credit card debt even after you have paid them thousands of dollars.

The first meeting with the debt management consultant will usually be free, although it probably won’t last long. it is primarily an introductory session where he can sell you on his services and you can make a determination as to whether you feel that he knows his stuff and that you will feel comfortable working with him. Just keep in mind that the best debt management consultant will tell you what you need to hear, not what you want to hear.

0 Apr Cards – Why You Should Have One
0 APR cards or 0% APR cards are credit cards where you pay no interest, for a certain period of time, on the outstanding balances.

Consumer Credit Counseling
Although disparaged by many, consumer credit counseling can be a great help in assisting consumers to draw down their credit card debt and to get their finances on the right track.


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Copyright – 2009 debt management consultant