Debt Managers have become very important these days as many people have gone deep into debt as a result of the financial crisis. They help educate people and advise them about the right way of acquiring and managing their debt.
Debt managers may also guide people and help them determine the type of loan that will best serve their purpose, and explain their restrictions and requirements. They may also provide guidance on developing plans for debt management and credit counseling.
Nature of Work
Debt Managers are designated third party entities that assist debtors with repaying their debt through a debt management plan. They provide credit counseling to people with debt problems that have gotten out of hand. They help arrange debt payment with creditors and avoid personal bankruptcy. They advise people on the available options for debt relief. They educate clients to help them start managing their finances so they can make their payments on time and stay out of debt as soon as possible. The best debt managers keep in contact with clients, telephoning them and visiting them at home if necessary to help them get back on their feet. A debt manager helps people with damaged credit recover and improve their credit standing by advising them on ways to spend less than what they earn. Debt management involves creating a plan together with the debtor. The steps in the plan include identifying all creditors and how much the debtor owes to each one. After the sum of the debtor’s debts is determined, the debt manager will then total the debtor’s expenditures and income. Based on this information, debt managers will usually determine the amount of money that can be allocated for repaying the debts and give advice on how to save money and continue repaying the debt until it is fully paid. They may also negotiate with creditors to reduce the amount of debt or get the best possible repayment terms.
Qualifications
Debt Managers like financial advisors must have a bachelor’s degree, preferably in finance, accounting, business, economics, law or mathematics. Those who have gone through training courses in taxes, investment and estate planning, and risk management will have an advantage. They should possess excellent written and verbal communication skills as well as a high level of math and organizational skills. They should also have insurance bond.