Since the economic downturn of 2008, the US economy is once again on the growth path with the rise in employment rates and household income also ticking up. However, the irony is that credit card balances are also on a record high. And with Federal rates going up consumers face the threat of paying billions towards extra interest. In 2018, the banks collected $104 billion towards credit card fees and interest a tremendous rise of 35% over the last five years and 11% over 2017. With credit card debts spiraling and consumers carrying several debts at a time, the demand for proper debt management services is growing too. That has resulted in a high need for credit counselors and debt relief experts like the ones you find at nationaldebtrelief.com who can advise consumers on the best ways of living comfortably with debts.
The growing dependence on experts for providing debt relief solutions to manage debts better has opened up new avenues for those seeking a career in this branch of financial management. More and more youngsters are keen to make a career in debt relief and consolidation services. Incidentally, the debt management sector has experienced the highest growth in the US in employing people who have knowledge and experience in money markets and financial management.
The role of debt managers or debt consolidators
Debt managers or debt consolidators can work for professional companies or offer services in debt management as an expert in an individual capacity. Debt managers play the role of linking borrowers to credit companies that offer debt consolidation loans to enable borrowers to convert multiple loans into a single one. However, it will be a mistake to view debt managers as mere facilitators of loans, which is just a small part of their job.
- The larger responsibility for debt managers is to educate borrowers and devise suitable plans to help them mitigate the hardships of carrying on with several loans simultaneously.
- They teach borrowers lessons in managing loans efficiently that help to maintain a decent credit score despite living on loans.
- How to turn around from an adverse financial situation created by availing too many debts is what debt managers can suggest and can work out a package for their clients for recovering from the crisis arising from mismanagement of debts.
- During the process of recovery from the barbs of multiple loans, they also help clients to save money while giving them the confidence of rebuilding their finances for a better future. Debt managers maintain a network with lenders who are willing to offer debt consolidation loans and help clients to avail loans at a favorable interest so that it generates savings.
- They also represent clients during negotiation with lenders for debt settlement as well as for taking a new loan.
Debt managers not only work out a debt relief plan but also ensure its implementation. It is a massive responsibility for stitching broken finances and helping clients to achieve their financial goals.
Read on to know how you can prepare to become a professional debt manager.
Required educational qualifications
To make a career in debt management, you must have a degree in higher education like in economics, business management, finance, or financial management. A 2-year associate degree in any of these streams can also do. During the course, you will learn about the basics of investment and risk management, financial laws, and laws about debt and credit. You will become familiar with the intricacies of managing business finance and learn how the money market works. You would acquire some skills required in sales and customer management that would help to work in the area of debt consolidation.
Do you have it in you?
While it might be easy to get a degree, to do well in the job you must have some character traits typical of debt consolidators. You must have the capability of using the knowledge gained from primary education and relate it to real life situations to find the cause of client ailment and suggest an appropriate solution. Every client is unique, and the better you understand them, and their problems, better would be the advice you have for them.
You must be empathetic towards clients and capable of taking logical decisions by adequately analyzing their problems. It requires excellent communication skills to sell your ideas to clients by convincing them why it is best for them and you must be a good negotiator for dealing with lenders on behalf of clients, both for getting a new loan and settling the existing ones. To succeed as a Debt manager, you should have a pleasing personality well accepted by all and have a friendly nature that helps to build professional networks.
Gain some experience
Working against deadlines and achieving targets is what you have to learn before taking up the career of Debt manager. That is possible by taking up a sales related job preferably in the financial segment immediately after completing the education that would expose you to real-life situations, and you could learn by seeing people from close quarters to understand their psyche, behavior, and expectations in a better way. You start learning how to interact with people at a professional level.
Obtain a license in debt management
In some states, it is required to obtain a license to start a career in debt management, and you should arrange for it. Check with the local laws if you at all need a license. Although the licensing requirements vary by states, there are some standard features like submission of application, taking an exam for practice and ethics and paying a licensing fee. The license is required for practicing in an individual capacity but would not be necessary if a debt management company hires and trains you on the job. Debt managers are equivalent to financial managers, and thus the licensing requirements are quite stringent.
Once you are ready, decide whether you want to work in an individual capacity in the role of a private debt manager, or would like to work for some professional companies that provide a comprehensive range debt relief services.