Financial counseling is a program that offers advice and assistance to individuals in financial trouble. In short, financial counseling lets you handle your money obligations and get your life under control again.
It is advisable that consumers take advice from the financial consultant before signing any loan deal with the debt management firm. Financial counseling can be especially useful to those in need of assistance in the circumstances such as:
- Negotiating with borrowers on the money they owe – for example, the service company, the bank or other loan, the landlord, or the ATO.
- Creating an insurance claim or questioning the result of one claim.
- Accessing the details relevant to your credit background.
- Creating a budget strategy
- Identifying what financial aid may be accessible from the government and other institutions.
Financial Counselling VS. Financial Planning
Financial counselors are not financial planners or licensed debt management experts. Though financial counselors help clients with their loans, financial planners are paying to provide investment advice. Financial counselors have earned a Community Services Certificate (Financial Counseling) and must be members (or eligible to be members) of a registered National or State Financial Counseling Organization or similar.
Financial planning is all about creating your resources and meeting your economic aspirations, such as gaining financial freedom or a secure retirement. A financial planner, also referred to as a financial advisor, will consult with you to create a strategy and make recommendations about implementing it. A few ways of how they can give suggestions are:
- Pension and pension savings
- Deciding about estates
- Insurance planning
What Documentation Do I Need to Have to Talk to a Financial Counselor?
You’ll want to get the most out of your visit to a financial advisor. Collect the below details with you if possible:
- Any debt contracts, such as mortgages and personal loans
- Service arrangements, such as cell phone and Pay-TV
- Both existing and delayed bills
- A list of the people you owe your money to and how much you owe
- Any messages you got about your bills and debts
- Information on all your sources of income
- Information on the fees or benefits you receive from miscellaneous services
What to Expect During a Financial Counseling Meeting?
In the course of a meeting, the financial counselor will usually:
- Focus on presenting information and guidance relevant to the needs of the client.
- Use all relevant insight into the financial condition of a customer to plan a budget or financial status snapshot to show where their money is going.
- Advise the client about their suggestions for handling the crisis and taking back control over their finances.
- Suggest which debts should be regarded as a priority.
- Recommend how to apply for distress consideration for a wide spectrum of debts.
However, the financial advisor would not get hold of the client’s accounts or operate solely with the customer’s resources.
If you are not ready for financial counseling and believe you can manage your situation with a bit of a financial boost, try Payday Depot. The service pairs you with reputable online lenders and takes care of all processing functions.