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Debt Counselors: Do You Need One?

Those who get themselves into financially turbulent waters will sometimes seek a life preserver wherever they can. Sometimes, they reach out to a debt counselor. That can definitely be a wise move.

A skilled debt counselor can offer specialized knowledge gained through experience about which programs are effective and which are bogus. They have seen a variety of fool's gold offers come and go and know how to separate the real from the merely shiny.

Beyond practical guidance, one of the best values a good debt counselor has to offer is that helping hand. Incurring excessive debt over a long period is often more a psychological issue than one of practical skill. Difficulty resisting a debt settlement plan that looks too good to be true is hard for some people. A third party can be an objective eye.

People deep in debt sometimes have trouble seeing the light at the end of the tunnel. In the midst of a financial crisis, it can be hard to focus on the long term - especially when willpower may be the one weak area that led to accumulating all that debt in the first place.

A debt counselor can help keep such a person's eyes focused on the prize. Helping to develop a workable program is as much about setting realistic goals, and providing incentives and reminders of the worth of sticking to them, as it is about numbers in a spreadsheet.

But a debt counselor can be a hindrance if the person isn't prepared to commit to resolving his or her problem. Relying on just one more crutch to avoid accepting responsibility isn't an effective long term strategy. Short term help, for a period of readjustment, is perfectly healthy. But in the long run, it's up to each individual to manage his or her own affairs.

Many people are not naturally good at managing money. But it's a skill that can be learned. Balancing a checkbook requires only simple arithmetic or minor skill with a calculator. More often, the difficulty isn't technical, it's emotional.

Good advice is only worthwhile if it's followed. No debt counselor can ensure that. They can make a program sensible, and therefore feasible. But a person has to be willing to follow a sensible strategy and that often means changing long standing self-destructive habits. That comes harder to some than others.

When a person is willing to follow good advice, but also willing to strengthen their own inner reserves, the road may be long, but it is sure.

Outlining a realistic program for consolidation, debt forgiveness, interest rate or loan terms renegotiation is just one of the practical benefits a counselor can offer.

Helping keep you on track is part of the total package. But, ultimately it's up to each person to recognize their actual situation and meet it bravely.