Do I Have To Pay For Debt Counseling?

Do I Have To Pay For Debt Counseling?

To answer the question, “Yes you pay for debt counseling, one way or the other”. To be more specific you have to pay to avail of the sets of a registered and competent debt counselor and you also pay dearly from poor financial advice. This article will provide the reasons for both statements in the hope of elucidating readers regarding debt counseling.

Debt Counselor vs. Credit Counselor

One must differentiate a debt counselor from a credit counselor. While both operates for profit and are regulated by the government. The regulation of the former is a bit more lax than with the latter. In addition the former is allowed to collect reasonable fees depending on the sets provided while the latter has their fees pegged at a price depending on the state within which the counseling is to take place. Last and most important of all, a debt counselor can discuss several aspects of a consumer’s finances in order to better educate the same on the options obtainable in addition as proper financial planning and implementation. This method that the session will last more than a few hours. while the former is used as a step in order to qualify for a financial option such as bankruptcy, foreclosure, short sale, etc. and can be finished in a matter of a few hours.

You Pay for A Duly Registered Debt Counselor

In countries like the United States and in South Africa, debt counselors are privately owned corporations or private individuals who function for profit. However, these entities are not merely self-professed private individuals or for profit corporations. In order to be allowed to practice as a debt counselor one must undergo demanding training and qualify on examination regulated by appropriate government empowered agencies. Stated simply, credit counselors’ keep up out their professionally regulated sets to the public for a profit.

How Much Does a Duly Registered Debt Counselor Charge?

Unlike in credit counseling wherein there is an absolute standard, debt counseling fees go up and down based on supply and need. Also the fee varies depending on the service provided. However as a general rule, these fees must not be unconscionable or so shocking to the consumer. However for the minimal fee a consumer can learns ways to maximize their income and minimize their expenses. Of course it is up to the consumer to implement the same on his/her finances.

You Pay for Self Help or DIY Debt Counseling

Some consumers who are looking for a bargain opt to avail of do it yourself manuals or easy-to-understand books that make you believe that managing your finances or debt is fun and easy. Of course self help manuals are helpful tools to augment your knowledge on a specific subject matter. However there is really no replace a one on one conversation with a debt specialist who will not make light of your current financial situation. Rather the same will stress that freedom from debt is possible but you have to understand that it is a continuing course of action that involves taking your finances and your situation seriously.

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