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Debt Consolidation Is Failing The Consumer


Time has come to embrace true debt elimination strategies instead of the 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 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 debt consolidation loan 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 from arranging debt consolidation loans.

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 such as lender fees, brokers fees, legal fees, etc..

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 the way out of debt is to get Debt consolidation loans – debt consolidation misleads the public. The debt consolidation loan industry failed to address people need to get out of debt. Money coaches are coming to the rescue. There is a new industry that gaining momentum daily – that industry is money coaching.

The answer: 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. Money coaches focus on the negative money beliefs deep rooted in childhood, and they are aware that no one can experience financial abundance and life fulfillment unless they synchronize their internal selves with their financial realities.

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 selling debt consolidation loans and arranging mortgage your property to pay off your debt as a solution. They are saying let’s integrate these products into comprehensive financial plans to help people gain control over their money issues – so money won’t become an issue. They are using the product as an integral part of a UNIQUE solution.

Money coaches are creating, implementing and monitoring comprehensive financial plans for their clients. They are helping their clients integrate their goals, income(s), 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 and stay debt-free for lifepersonalize client financial plans
  • 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 a UNIQUE money coaching service using the ULTIMATE Money Coaching Software Platform.

What are these debt elimination strategies that money coaches and smart mortgage brokers, loan originators are implementing?

Debt Consolidation Alternatives

Below are the strategies you can implement in creating your clients’ financial plans. Which debt elimination strategy best serves your clients is subject to a thorough evaluation of the client’s income, debt load, and other financial resources.

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 if this debt consolidation strategy is properly implemented.

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. If your client is burdened by debt and has a challenged credit rating, it is virtually impossible to qualify for a debt consolidation loan.

Debt Settlement Strategy is a good strategy if your client has 3 delinquent debts or less 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 outstanding balances over a maximum of 60-months interest-free. Bare in mind this option is a NOT legally binding debt elimination strategy and not all your creditors would participate.

Consumer Proposal Strategy is a legally binding strategy. It allows the debtor 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 the debtor should consider.

Let’s discuss each debt elimination strategy, details the advantages and disadvantages of each and how your client can succeed with the appropriate debt elimination strategy.

All these debt elimination strategies would help the debtor becomes debt-free, but they don’t address the money dysfunctions that led them to be in debt.

The money coach can help clients discover their non-serving money beliefs and gradually change their spending behaviors and non-working money beliefs. A Money Coach will also identify areas where the client may need in-depth financial counseling in a series of frequent face-to-face meetings.

Becoming, a money coach is a serious opportunity worth exploring.

Did you know the Money Coach Software Platform enables you to implement the best debt consolidation strategy without the need of a debt consolidation loan?

Click to explore how this Debt Consolidation Software works.









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