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Financial literacy helps you decide better when it comes to money resources. Unfortunately, not everyone improves their financial knowledge, which leads to money problems. People thought that it was okay to borrow money anytime they wanted. On top of that, they would even live above their means. They would buy and shop whenever there was a sale season. Unbeknownst to their knowledge, this attitude can suck them into the debt trap vortex.

When this happens, some people panic and make wrong decisions that they assume could help them. For instance, they would sell their cars or lands only to pay what is due. However, it may not free them from their financial problems because they lack guidance. It’s better to talk with a debt consultant to guide you on how to handle your financial resources.

Hence, let this article show you the questions to ask your debt consultant to escape the debt trap and make your life financially comfortable.

Questions to Ask Your Debt Consultant 

When meeting with a debt consultant, you should know the right questions for better financial knowledge. Keep in mind that making a financial decision is not about how smart you are as a person. It’s about considering every factor, such as your assets, savings, possible risks, and debt probability. See, achieving financial literacy is about being aware of your actions and having mindful decisions for your choices.

So, to help achieve financial literacy, here are the questions to ask during your debt consultancy:

1)  Can you show me your qualifications?

Before you start trusting your debt consultant, it’s better to ask about their qualifications to know whether they are worthy of your trust. Since you’ll be sharing your financial information, you should ensure that the debt consultant is a legit adviser. It is the first step towards your financial freedom because you’ll learn not to trust anyone you meet for your money.

Without the appropriate financial knowledge, you may be gullible to trust anyone with your money. Hence, asking about your debt consultant’s qualifications teaches you to be more meticulous when entrusting your money to other people.

Therefore, when you ask them: Can you show me your qualifications? Make sure they can give you a satisfying answer. They should share their license, educational background, professional experience, training and seminars attended. This way, you’ll get to know more about your debt consultant.

2)  How do I reach my financial goals?

Everyone wants to achieve financial freedom. However, it could be a challenge if you have a debt, whether from student loans, personal friends, or an organisation. Good news: it’s not yet the end of the world! You can still solve this by looking for debt consultancy services. As you work with a consultant, ask how to reach your financial goals even though you have a debt. 

Fortunately, they can help by assessing your financial situation. The debt consultant will ask about your monthly salary, spending habits, and the total amount of debt before giving personalised debt solutions. After this, they will take control and negotiate with the creditors to help you escape the debt trap.

3)  What are the possible risks?

Also, don’t forget to ask about the possible risks for your debt solution system. Do you need to give up some assets? Will there be an impact on your future savings? It’s essential to ask for the possible risks because you’ll be able to assess what to do to lessen the damage. You’ll also need to ask the debt consultant how to minimise the blow if risks are inevitable.

For instance, you get a loan consolidation in Singapore to pay your debts. Although it’s a convenient solution, you may end up paying for more interest in the future. The debt consolidation has a longer term for you to repay it. Hence, it could give you more financial responsibility in the future.

Another risk is the possible personal information breach when talking with a debt consultant. But, on the positive side, trustworthy consultants will ensure that your information is safe. Thus, protecting you from the invasion of privacy.

4)  How many meetings should I Attend?

During your first meeting with the debt consultant, ask how many meet-ups you should attend for the whole process. Do you need more than five meetings to solve your debt trap problems? Is one consultation enough to find solutions? Know the answers so you can prepare for the meet-ups.

Better yet, talk with your consultant about how you two will work together. Since there’s still a pandemic, you can request an online meeting over physical meetings. Also, don’t forget to respect the debt consultant and use professional words. Plus, remember to arrive on time and prepare all the necessary documents.

Building teamwork can help you achieve your financial goals. Trust your debt consultant and be diligent about escaping the debt trap. Start a year right and achieve the financial freedom you want!

5)  How do you calculate my savings, monthly salary?

Now, it’s better to ask about their calculation method regarding your financial status. Would the consultant consider your monthly salary and overall savings? Or would the debt consultant only consider the loan consolidation options? Asking these questions will clarify more about the debt solutions.

Also, you must ask about how they calculate your savings and relate it with the total amount of your debt. Don’t forget to ask every detail to avoid getting confused with the whole process. Feel free to ask questions because it’s about your money.

Your debt consultant should clarify every detail with you to avoid miscommunication and further financial problems. Therefore, you’ll achieve the financial freedom you want for the longest time.

6)  How long before I achieved financial freedom?

Finally, it’s better to ask how long before achieving your financial freedom. Although it’s your responsibility, it would be best for the debt consultant to give you an idea about the timeline of your financial solutions. You must ask about the steps you need to take from beginning to end to get more ideas about your financial solutions in the future.

Remember to ask these questions when you meet a debt consultant from Debt Aid in Singapore. Contact them to start your debt consultancy meetings to achieve financial freedom.