What To Expect In A Debt Consultation
If you are looking for a debt consultation in order to get control of your finances, you are doing something that a lot of consumers cannot do: admit there is a problem. You have half the battle already won when you realized that you needed help to obtain your financial freedom. It may be an intimidating thought to let someone look at your grim financial picture. You may even be a little embarrassed at what you have to show them. But please know that a professional debt counselor will not make you feel bad about your situation at all. In fact, they exist to help you out.
During your debt consultation, you should be prepared with all of your current bills and statements. Counselors need a true and complete picture of where you stand financially. This will give allow them to make an assessment and suggest the steps that should be taken to get your situation turned around.
Next, you want to be sure to have a copy of your most recent pay stubs or other documentation that shows your income. They will want to know what your “debt-to-income ratio” is to help you try to lower that ratio. Debt-to-income ratio is how much debt you have versus how much money you make. This ratio is a way that future creditors will determine whether you can handle a new account. The higher it is, the less worthy they think you are of paying a new account on time.
Once your counselor determines the best course of action, you will be able to begin a new debt elimination plan with payments you can easily afford. This plan can be completed in 6 – 60 months, at which time you will become debt-free. During this process you may or may not experience fluctuations in your credit score. However, once the plan is completed, you will be showing that you are again creditworthy. Any decrease to your credit score in the short term can be worth it in the long run.
You are not alone with financial issues that need to be resolved. You should not feel embarrassed or intimidated by the debt consultation process – it will only help you in the long run. You will learn to look at money and spending a little differently. You will see how you can use your current income to reduce your debt. Most times when people finish their debt consultation, they are mad at themselves for not doing it sooner.