Debt Management vs. Financial Planning
What is financial planning and how does debt fit in the plan?
Financial planning is the process of clarifying what your financial picture looks like today and what you want it to look like in the future. For many of us, debt is part of this picture. During the planning process, our financial advisors evaluate each source of debt and advise on the best path to balancing your debt obligations with saving enough today to fund your future goals. If you’ve read our blog post on, “Is Debt-Free the Way to Be?”, you’ll know that we consider many factors when evaluating debt and whether it should be a priority to pay off.
What if I only need help with managing and paying down my debt?
If you have accumulated a large volume of debt and are looking for detailed advice specific to paying down your debt, a debt management plan might be a better fit for your current situation than a financial plan. A debt management plan is a tailored plan on how to pay down large amounts of debt. These plans can be offered by nonprofit credit counseling organizations. As you select a credit counseling organization, be sure ask questions about any fees that you will be charged as part of your service. Once you begin to see the light at the end of the tunnel and have an emergency fund established, it may be time to sit down and create a financial plan.