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I read some interesting stats today on consumer debt. In 2008, the average American household had over $10,000 in credit card debt and more than half carried regular balances over $7000 (source: CardWeb.com). That means as debt counselor you have a lot of work to do.
Educating Consumers About Debt
The most effective way to get a consumer help is by educating them. Chances are that these debt weary consumers are in trouble because they lack good financial education. They don’t understand how to manage money, much less debt.
This makes credit a very dangerous lure.
Teaching your debt workout customers the basics of personal finance and responsible use of credit is a necessary first step. This will put them on the right track to financial recovery and earn you the trust you need to negotiate or counsel them out of debt.
Making Debt Counseling Understandable
Debt education sounds easy, but to most of those with debt troubles it’s like rocket science. Numbers, interest rates, late fees, settlement, repayment–these are all words that tighten their chest with anxiety.
You need to make it simple and fun. This debt workout infographic from Mint.com could be just one tool in helping to educate potential debt customers.
The Right Solution to Debt
The most important objective in offering debt solutions is getting the consumer to the right debt workout program for their situation. Walking them through a good process of educating them on debt, reviewing their financial situation, and guiding them to the most advantageous debt workout is a job you should be proud of.
