Debt consolidation might seem easy for doing on your own, but it is not so unless you are guided by a financing professional who has adequate experience and knowledge on the subject. The financial option that is often used by people as the last resort before heading for bankruptcy acquires immense importance in the way it is implemented. This is why professional skills, knowledge and experience can make huge difference in the results. Those who are facing difficulties in meeting financial obligations due to excessive loans from multiple sources exercise the option with the help of financial professionals who specialize in debt consolidation. That is why debt consolidators are in good demand and many people have taken it up as a career.
The Role of Debt Consolidators
Debt consolidators are usually associated with financial companies that offer services in debt management. Also known as debt managers, they are responsible for working as a link between people in debt and credit companies that offer loans. They help clients to work out a suitable financial plan that would help to pay back the earlier loans by arranging for a new loan at interest rates that are lower than the interest rates of the prevailing loans of clients. In addition, they also manage the other loan accounts of clients by paying back the creditors with money obtained from the new loan. Clients are completely relieved from managing their loan account once they have appointed a debt consolidator who administers the loan and arranges for repayment to other lenders.
Important Traits for the Job
Aspiring debt consolidators need to have proper knowledge about financial services along with a good understanding of finances. An education in business management or financial management is preferable. They have to be excellent communicators with strong negotiation skills as they have to broker the best loan deal for clients. They also need to have an affinity for sales because the job involves selling financial services. Understanding and evaluating the financial health of clients correctly to use the information for working out the best methods of consolidation for the clients is the task of debt consolidators.
The size of the market in which debt consolidators operate is ever increasing. Going by the figures provided by the U.S.Federal Reserve in the Survey of Consumer Finances, the mean credit card debt for an American household is $5700. Till the second quarter of 2016, the total debt on credit cards amounts to 0.73 trillion US dollars. Added to this is the business segment that avail the facility of debt consolidation that makes the market size enormous. Therefore, taking up a career as debt consolidator holds good prospects for the future.
The job prospects of debt consolidators are highly encouraging. According to the U.S.Bureau of Labor Statistics, the jobs of financial advisors are likely to grow 32 percent by 2020. Since debt consolidators belong to the group of financial advisors, they can enjoy the benefits of high growth. The growth rate is more than double that is envisaged for all other jobs that has an average of 14 percent.