Debt Counsellor

The economic difficulties of different countries have been making individuals struggle to cope up with the debt they are incurring.  The increase in cost of living is making salaries smaller that it is becoming insufficient to cover the everyday necessities of individuals.  And sometimes, even with the efforts of the government, they cannot compel the employers to give a salary increase because then this may result to unemployment, a mere transfer of economic problem instead of finding a real solution.  If you are so indebted and you do not know what to do, ask for the help of a debt counsellor through counseling

What is debt counseling?  It is a solution where a rehabilitation program is made for people with more serious debts.  This is intended to prevent an individual from being in a personal administration.  This allows the debtor to enter into a debt repayment plan until he gets to settle everything and live a debt-free life once more.  How does a debt counseling process takes place?  The process requires a registered counselor. He will be responsible in formally reviewing the finances of the debtor.  The debtor makes an application which may be approved or declined.  An application or rejection fee shall be collected from the debtor. For an accepted application, a restructuring fee is also charged for the installment to be made for the actual creditor.  If a counselor fails to submit a proposal within the time allotted, he should refund the full payment made by the debtor.  A monthly after-care fee will be charged for the debt re-arrangement plan.  If the debtor wish to terminate the services of the debt counsellor after the restructuring negotiation has been completed, it is but fair for the counselor to receive 75 per cent of the restructuring fee for the work he accomplished for the debtor.

For more protection of the debtor, the counseling fee should be disclosed to the debtor before any acceptance is made.  This is for the debtor to have the option to negotiate or choose another counselor.  And if the application is accepted, a debtor should have copies of the agreement for future reference.
Why need a debt counsellor instead of taking care of it yourself?  This is because creditors are more willing to negotiate with them rather than with the debtors themselves.  Asking help from counselors will make creditors realize that debtors are over in debt.  This warrants that the debtor cannot afford to make monthly payments but is willing and doing something.  There is however a criteria to qualify for debt counseling.  A debtor must be unable to repay his debts after taking consideration of all his financial circumstances.  The debtor should also have an income.  Whether employed by others or self-employed, the important thing is for your income to be sufficient to cover your daily expenses and still have enough to pay your creditor.  A debtor must remember that he has to do something and that he has to take charge over his debt.

What is a Debt Counsellor and How to Become One?