How Financial Advisors Can Help With Debt

You may think that financial advisors are only for large corporations or the wealthiest in society. The truth is, getting the advice of a financial advisor is most effective for people who are in debt. In this article, we will explore exactly how financial advisors can help with debt in particular.

financial advising

How Do I Start?

A financial advisor will map out your cash flow by analyzing relevant documents including bank statements, credit card statements, pay stubs, tax returns, and anything else that can give them a good view of your overall financial situation. Make sure you have all documentation to make the process more effective.

You will need to leave your pride at the door. A good financial advisor is not going to sugar-coat your finances if they are in the gutter. A good advisor will go through your expenditure in extreme detail. This is not to catch you out on frivolous purchases, but to pinpoint areas of a financial drain that you may be blind to after years of bad habits. Taking criticism is an essential part of the process if you want to be successful in getting free of debt.

How is it Possible to Minimize Debt?

The financial advisor will analyze your total debt. They will make a payback strategy of the most expensive debt (the debt with the highest interest rate) being paid back as the first priority down to the least expensive debt. Minimum repayments will be established on the lower interest debts, to avoid penalties, with higher repayments scheduled to clear the higher-rated debts.

If you cannot find the time to attend a financial advisor in person, you can use a financial advice service such as the debt relief program at The advisors have the experience and reputation to negotiate with your creditors in consolidating your debt and creating a repayment plan that is more affordable given your personal budget.

How Can I Afford to Pay a Financial Advisor?

You must think of the financial advisor as a small investment with a big return. They may cost you more than you feel you can afford right now, but in years to come you are going to have saved a lot more in time and money by implementing their strategies.

Do not resign yourself to being in debt for life or thinking of yourself as just ‘being bad with money.’ Financial advisors can show you how to make your money work for you and give you the tools to go forward in life in a financially responsible way.

In programs such as Freedom Debt Relief, you won’t be charged a fee until a settlement is authorized. They will even refund up to 100% of the settlement fees if the total cost to settle including fees is more than you initially owed. This might be an avenue you prefer to go down if you want to specifically consolidate and pay off debt.

Check for Qualifications

No matter what route you take you should make sure that the person advising you is certified. You should specifically look for an advisor who is a Certified Financial Planner (CFP).

Becoming a CFP is a standard of excellence that requires years of experience, rigorous education, the passing of standardized exams, and a demonstration of ethics. The most important part of being a Certified Financial Planner is that they have a fiduciary duty. This means that they have their client’s best interests in mind when imparting financial advice.

Do some deep research before deciding on whom you want to move forward with. Who you ultimately work with will all depend on what you want to gain from the consultation and your long-term goals. Research exactly how financial advisors can help with debt and investment and whether this is a service that you feel will benefit you both in the short and long term.

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