Debt Counseling ? Healing Touch for the Ailing Finances

The financial stories remain similar over the months and the years. With debts becoming a nuisance, people make resolutions and resolve to stand by these resolutions. But, once on a spending spree, little do they care for the resolutions that they made with so much efforts. Debts once again begin their run. And so do the resolutions.

How many months do you intend to continue this way? With the mounting debts, repayment becomes difficult. Bankruptcy suits are filed against the debtor and he loses his belongings to the creditors. If this is not what you plan to mirror in your life, then debt counselling will be strictly recommended.

D ebt counselling is a help in the settlement of debts from a friend, relative, or an outside agency. Through debt counselling, individuals are educated about the disadvantages of debts, means to lessen the occurrence of debts, and methods of settlement of debts already incurred.

The underlying assumption in debt counselling is that if an individual wants he can surely improve his debt status. The contention of most people is that they do not know how they contract debts at the very first instance. Nevertheless, there is little to this argument other than an excuse. A proper management of the income can surely lead people out of debts.

Debt counselling requires the debtor and the counsellor to sit together for a counselling session. All matters related to the debts and the other aspects of the finances like the income that one receives, the expenditures- expected and unexpected, those requiring to be satisfied with priority, standard of living, etc. are discussed during the counselling session.

The counselling session may be undertaken in about two to three sessions. This is however dependant on the individual case factors and the counsellor chosen. Borrowers must be frank while describing their case to the counsellors because subjective elements are important in forming a conclusion.

There are basically five functions of debt counselling. In the following section we describe the functions in detail.

? One-to-one counselling

Borrowers get resources on debt management from books, self-help guides, and seminars and conferences. However, these prove of little help. With the methods described having a more generalised feel, borrowers are unable to use them to their specific case. One to one counselling sessions are arranged with experts acting as counsellors. Most of the raw material in their forming a conclusion for the case comes from the individual's account of his financial condition.

? Self-help packs

As discussed earlier, borrowers cannot completely free themselves of their responsibilities towards the debts. Nor can they resort to outside help every time when a debt comes up for repayment. The borrower will have to take certain steps on his own. A judicious use of income is always preferred. While spending, the necessities must always come first. Try as much as possible to curb the unnecessary expenses. No debts must be ever ignored. If debts do occur, then steps to fix them must start from the beginning. Such tips will be advanced to debtors under the self-help packs.

? Debt repayment plans

Debt counselling also offers to help with the debts already incurred. Debt counselling agencies study the case of the individual and suggest debt repayment method out of the various debt repayment methods available. Borrowers are made aware of the advantages and disadvantages of each method. A genuine debt counselling agency will make a suggestion and not an offer. Many lenders try to sell off their debt repayment products in the garb of offering debt counselling. Borrowers must be able to distinguish between the genuine and the fake debt counsellors. Though the scope has widened because of the internet making more and more lenders available, it will be unwise to associate with any lender without making the necessary enquiries about their trustworthiness and reliability.

? Negotiations with creditors

Making the payments to the various creditors can be a gruelling task. With creditors not lessening their demands, the debtor is in a fix as to how he is going to repay to the other creditors. Proper negotiation will be required to compel the creditors to lessen their demands. Debt consolidation agencies represent the debtors during the debt settlement process. Lump-sum payment on the debtors account acts as an inducement in the negotiation process. The amount remaining after the debts have been repaid can be used by the debtor in the manner he desires.

? Continuous help and advice

Debtors are not left to fend for themselves after the counselling ends. It is normally seen that people face difficulties in implementing the advice gained in the debt counselling session to the real life. Counsellors conduct a study of the factors that might be preventing the implementation. New suggestions or modifications to the old suggestions are made according to the demands of the case.

Some people would laugh at the suggestion of taking debt counselling as being hyper-sensitive to a triviality like debt. But debts are not trivialities. They can attain dangerous proportions if they grow unhindered. Though individual attempts of the debtors will be always welcome, these can go haywire in the absence of expert help from counsellors. With experts filling up for counsellors, debtors can rest assured that they will be fully rid of the debts.

Aditya has completed his masters in mass communications from Jamia University. If you need UK secured loans, unsecured Loans, mortgages visit http://www.ukfinanceworld.co.uk

---

FHA Home Mortgage Purchase or Refinance Loan - Why You Might Consider Getting an FHA Loan

Most borrowers have heard of FHA home loans. They are... Read More

Are You A Victim Of A Predatory Mortgage Foreclosure?

Help is available to borrowers who have claims against their... Read More

Bad Credit Home Financing - Get The Mortgage Loan You Want Even With Poor Credit

Having poor credit alone cannot hold you back from getting... Read More

Home Equity Loan Information - How to Use One Wisely

Using a home equity loan to get out of debt... Read More

A Home Equity Loan ? Is It For You?

Home equity loans are often touted as being the solution... Read More

Imagine Cutting Over $8,000 Off Your Mortgage This Year

I once helped a customer cut over $700 off his... Read More

Understand a Real Estate Appraisal

Happy New Year. Make a difference this year. "Pay it... Read More

What Your Mortgage Lender Is Not Telling You About Accelerated Mortgages

For years, mainstream banks and financial advisors have been recommending... Read More

What Is The Best Deal For A Mortgage?

Few of us invest the time and effort into researching... Read More

Consolidate Your Debt With a Home Equity Loan and Improve Your Credit Score

A home equity loan is a loan based on the... Read More

Best Buy to Let Mortgages

Are you looking for the best buy to let mortgages... Read More

Interest Only Home Loan ? Is It Right For You?

There are many benefits to interest-only mortgage loans. There are... Read More

Tips On New York Mortgage Refinance Loan

Many homeowners want to know if it worth taking a... Read More

Refinance Your Mortgage to Rebuild Credit

Refinancing your mortgage is one way to rebuild your credit,... Read More

How do I know what is the best Second Mortgage Home Loan for me?

The information in your credit history helps mortgage lenders decide... Read More

Should You Get a Home Inspection?

It's very important, and in my opinion, mandatory to have... Read More

Refinancing After Bankruptcy

Refinancing after a bankruptcy can seem like an especially difficult... Read More

Types of Home Equity Loans

There are at least two types of home equity loans.The... Read More

VA Loans, A Gift from Uncle Sam

Uncle Sam has a gift for the men and women... Read More

Bad Credit? With Poor Credit You Can Still Refinance Or Get A Home Equity Line Of Credit

Have you decided to refinance your home or apply for... Read More

Remortgage Serves To Rewind The Reimbursements Of Mortgage

It takes a mighty big effort to secure a home... Read More

What is a Current Account Mortgage?

Current account mortgages are fairly new to the sector. They... Read More

Home Equity Loans ? There?s Gold In That There House

To paraphrase an old familiar quote that goes "there's gold... Read More

Home Equity Line of Credit ? Great for Remodeling Projects

Many homeowners are lucky enough to find a house that... Read More

What Length Mortgage Is Right For You?

You've found the home that is right for you, and... Read More

Why Choose a Home Equity Loan?

There are many reasons for choosing a home equity loan.... Read More

Mortgage Marketing

W. Edwards Deming said "Marketing and innovation are the only... Read More

Home Loans For People With Poor Credit - Understanding The Requirements For a Subprime Mortgage

Home loans for people with poor credit demand that you... Read More

6 Things to Consider Before Refinancing

Perhaps you're a homeowner in need of some quick cash.Maybe... Read More

Home Mortgages: Does It Ever Make Sense to Pay Points?

Interest rates on home mortgages are often quoted with and... Read More

Who Could Benefit From A Reverse Mortgage?

What is a "Reverse Mortgage?"Also known as a Home Equity... Read More

Look For a Great Mortgage Online

People who are looking for a mortgage today have many... Read More

Mortgage Sales Hit Problems

The housing market has been buoyant over the past few... Read More