How to get out of the debt spiral – look for an advisor, not a seller

Specifically on the main streets of the city. I was interested in credit, loan, service, etc. offices, all of which deal in the provision of loans and non-bank loans. There are several such offices. Most often they sell the mentioned financial services as let’s call it an element complementing the offer.

So there are travel, insurance and laundry agencies, which also offer loans for individuals, loans for companies, and also deal with debt relief. Let’s focus on the last element, i.e. debt relief?

What is it about publishing such offices?


Well !!! The most common deleveraging involves entering the rain gutter. And even more clearly from one swamp to another. The essence of action is customer dependence. First, it mediates in taking one loan, then another, then consolidates it, then the client gets one more loan, then consolidates again.

And when there is no more creditworthiness, then he gets one non-bank loan, then another, etc.
And this is the fastest way to a credit spiral.
So ask yourself:

Is this a debt relief?

Is this a debt relief?

This is not a debt relief, because if a person using such services sums up all their costs and the level of debt, it would turn out that instead of falling, it would increase dramatically.
How you can use the advice of unscrupulous people to put your loyal customer into even more debt, instead of giving advice to reduce debt. How can you get the help of people who are not advisers but sellers who add maximum commissions possible to the loan.

I observed a very interesting thing. There are always a lot of people in offices that clients should avoid. They allow themselves to be manipulated. They do not look at internet forums that warn against using their services. They sign the documents submitted and then expose themselves to additional troubles, e.g. visits to the police station.

They must be repaired from scratch


You must understand that credit consolidation / erroneously called debt relief / is just one piece of the whole puzzle. The process of getting out of debt begins when you become aware of your situation and decide on the need to change your approach to the household budget.

It starts with collecting receipts and invoices and recording all expenses. Recently, sometimes standing in shops in the queue to the cash register, I watch customers.

They pay for the purchased goods, often saying that they do not want a receipt, leave it on the counter, then it lands in the basket. You need to learn how to take sales receipts, demand them when the seller, for example, does not print because he does not see the need to register the operation. Let’s learn to care for our own portfolio as well as for the integrity of sellers.

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