Debt Consolidation vs Debt Elimination
Time has Come To Embrace Debt Elimination Strategies Instead Of The Failed Debt Consolidation Strategy That The Financial Industry is dispensing as Aspirin!
One dollar of debt is one dollar too many. Billions of people are in debt, and they are looking for a credible advice to shed their debt loads. The financial industry is pushing debt consolidation anytime the borrowers qualify for debt consolidation loans. They are dispensing aspirin (debt consolidation loan) for an unidentified illness. They are helping people convert unsecured debt to secured debt in most cases. What is the success rate of these people who are signing those debt consolidation loans? What about those who don’t qualify for debt consolidation loans?
The sad news is too many people are failing with their debt consolidation efforts. ; the financial industry and its stakeholders are earning an obscene amount of money in interest and fees.
Debt is crippling a countless number of households worldwide, and many are living paycheck-to-paycheck.
Statistics Canada in September 2016, reported the state of household debt during the second quarter, the ratio of household debt-to-disposable-income is 168% – meaning households hold more than $1.68 in debt for every dollar of annual disposable income.
US household debt load is creeping back up, and student loans are ballooning despite a serious decline since the 2008-2009 recession. American household debt is almost at the pre-recession level.
The picture is grim for many households in the industrialized world. Here is a snapshot of the debt load they are carrying.
I want to challenge the industry – Banks, lenders, private lenders, mortgage brokers, loan originators, debt elimination advisors to closely to look at how they are dealing with clients’ debt and the debt consolidation loans that they are dispensing.
All these stakeholders have one goal and one goal only – their goal is to sell products, e.g., mortgages, debt consolidation loans and get paid for them.
Banks, mortgage lenders, and other lenders make interest on the debt consolidation loans they give out and earn fees.
Mortgage brokers, loan originators earn commissions and other fees.
The borrower gets a product. The borrower gets a debt consolidation loan or a mortgage. The borrower believes he or she has dealt with its debts. The truth is the client still has the same debt plus fees.
People want to become debt-free. Debt consolidation has failed the mass. They need to eliminate their debt. The only way to do that is to eliminate their debts – debt consolidation prolongs the debt struggle and makes things more expensive.
The public has been marketed to as the way out of debt is to get Debt consolidation loans – debt consolidation misleads the public. The stakeholders failed to address people debt load. Money coaches are coming to the rescue. There is a new industry that gaining momentum daily – that industry is money coaching.
Money coaches are coming to the table and asking daring questions no one dared or cared to ask in the past. The questions are:
- Why people do what they do with their money?
- What makes one person thrive financially while another continually struggles?
Money coaches understand that the subconscious money beliefs of each person dictate why each person do what he or she do with their money. And the answer goes beyond the numbers in each person life. Books are written on this topic.
Money coaches also focus on putting financial plans in their clients’ lives to gradually help them gain control over their money to achieve peace and prosperity.
Money coaches are a big advocate to stop looking at a product, e.g., debt consolidation loan, mortgage your property to pay off your debt as a solution. They are saying here is the solution to people money problems – here is a comprehensive financial plan to help you gain control over your money issues – so money won’t become an issue. They are using the product as an integral part of a solution.
Money coaches are creating, implementing and monitoring comprehensive financial plans for their clients. The money coach is helping their clients integrate their goals, income, expenses, liabilities, mortgage(s), investment(s) and insurance into an overall financial plan to:
- live within a balanced budget that works,
- successfully manage their home equity (if the borrower is a homeowner)
- execute the appropriate debt eliminate strategy to help their clients become debt free and stay debt free for life,
- improve their cash flow and liquidity
- create wealth,
- maximize tax deductions (if applicable)
This solution fairs better than here is your debt consolidation loan Mr. Client. Call me if you need a new debt consolidation loan in the near future.
They are providing this UNIQUE money coaching services using the ULTIMATE Money Coaching Platform.
What are these debt elimination strategies that money coaches and smart mortgage brokers, loan originators are implementing?
Below are the strategies you can implement in creating your clients’ financial plans. Which debt elimination strategy best serve your clients is subject to a thorough evaluation of the client’s income, debt load, and other financial resources. They are saying good buy to debt consolidation and welcoming debt elimination strategies their clients become debt free in record time.
Become Debt-Free on $5 Per Day Strategy is a unique life-changing strategy that almost every debtor can deploy to become debt-free in record time. The strategy is unique, simple and works for everyone. If you ask me, this is the only strategy every person with debt would ever need.
- Refinance the client’s home to consolidate debt is a good strategy If the refinancing of your client’s property is a vital strategy to help your client become debt-free in record time, providing it is implemented properly.
- Debt Consolidation Loan Strategy is a good strategy if your client qualifies for a debt consolidation loan. The Debt consolidation loan can be secured and unsecured. The unsecured loans are hard to come by. If your client is burdened by debt and have a challenged credit rating, this strategy is impossible.
- Debt Settlement Strategy is a good strategy if your client has 3 or less delinquent debts and have a lump sum payment to offer.
- Credit Counseling Strategy is a good strategy if your client qualifies for it. Credit counseling is an arrangement to pay your outstanding balance over a maximum 60-months interest-free. Bare in mind this option is a NOT legally binding and not all your creditors would participate.
- Consumer Proposal Strategy is a legally binding strategy. It allows your client to make a deal with its creditors and enables them to avoid Bankruptcy.
- Bankruptcy Strategy – Bankruptcy offers debt relief and a fresh start, but it should be the last strategy your client should consider.
Did you know the Money Coach Software Platform supports the following debt Consolidation strategies: debt consolidation, refinancing your client property, filing for a Consumer Proposal and filing bankruptcy? They are viable debt consolidation strategies.