But now, you enter a life after debt counselling, you’re on your own to manage your finances and ensure that you don’t get back into debt. What do you do?
Read on to find out more about what you should do after you get a Clearance Certificate, including whether or not you should consult a financial adviser.
What should you do after you get your debt clearance certificate?
Some - if not most - people become anxious and extra careful with managing their money after debt counselling because they believe they can’t handle their finances.
But is getting a financial adviser a good idea?
What does a financial adviser do?
Let’s start off with a definition. A financial adviser is a person who provides guidance and advice to consumers, and get paid for it in various different ways. They make money on fees for consulting, through commission (from suggesting certain services or companies to the consumers they advise), or from profit-percentage structure.
A financial adviser can help you create a personalised budget to ensure you achieve your financial goals. They not only help you with your investments but also with tax, savings, debt, insurance, and all that is related to your finances. Essentially, they assist with making financial decisions.
They evaluate your current financial situation and recommend adjustments where necessary with the aim of planning for your future. However, this doesn’t come free. Like any service provider, a financial adviser will charge you for every service they render to you. And, remember, they make commissions from the things they suggest to you.
How to know if you need a financial adviser?
This will depend on your personal circumstances.
You’ll have to know why you need a financial adviser and the type of financial adviser you’d need. Some advisers specialise in retirement needs, and others in insurance, depending on their interests. If you think you need assistance with your taxes specifically, you’ll need a tax specialist for that.
If you’re really worried that you won’t manage your money well, and do not trust your budgeting skills to keep you out of debt, then a financial adviser can be very helpful. In addition, they can open your eyes to ways of thinking about money that you have never considered before.
After the debt counselling process, a financial adviser can really come in handy to help you get back on stable ground.
However, in the end the decision remains yours. You are not forced to enlist the assistance of an adviser. If you feel comfortable managing money and are sure you won’t end up back in debt, then you should certainly feel free to do things your own way.
Factors to consider if you are deciding if you need a financial adviser:
-
Complexity of your financial situation: Do you have a lot of different financial responsibilities and dependents? Is there a lot going on financially, making it difficult to keep track? If so - then a financial adviser can assist.
-
Your financial goals: If your goal is just to remain stable, then you might not need an adviser. However, if you want to go big and better your financial life and wellbeing in a significant way then a financial adviser can help you with that.
-
How much you want to invest & your portfolio ideas: Investments and building financial portfolios can be confusing if you’ve never done it before. It’s easy to make the wrong decisions and get yourself into tough situations. If you’d like to better your financial life through investments or a larger financial portfolio, then it would be a good idea to seek the guidance of a financial adviser.
Need debt counselling or consolidation?
Explore DebtBusters' solutions for reducing your interest rates and unlocking cash.
Find out more -
Your risk tolerance: Here is where you have to be really honest with yourself. If you know that you sometimes spend recklessly and are not likely to strictly follow a budget, then you should consider employing a financial adviser. They can help keep you on track and away from risky behaviour. On the other hand, if you know you don’t break easily and are responsible with spending, then it might not be necessary.
Start with financial education:
Before you approach a financial adviser, you should do some research and educate yourself. This can help you understand your situation better and outline your goals more clearly.
There are various free online resources that can help you educate yourself. For example:
-
Visit the DebtBusters blog and read about various financial topics.
-
Use Old Mutual's financial tools and calculators to understand your situation.
-
Listen to podcasts on personal finance, like Freakanomics.
-
Take free courses on Khan Academy to increase your skills and knowledge.
After doing these things, you’ll have a lot more weapons in your arsenal and will be able to make a better decision on what you really need.
What if you need just budget planning and financial advice?
If you need someone to help you budget better so you don’t fall into the debt trap again, you can speak to your debt counsellor.
After you complete your debt counselling process, you may no longer require that since the process also educates consumers on how to manage their finances going forward.
Can I get financial advice if I have not been under debt counselling with DebtBusters?
You can contact DebtBusters and get a free assessment of your current situation. From there, our expert agents will advise you on what to do next.
Alternatively, you can approach a bank or a independent adviser for financial guidance, but this will cost you.
How can DebtBusters assist with financial education
At DebtBusters, we provide budgeting methods and personal finances management plans in order to solve debt problems.
If you see that your debt is becoming a threat to your financial health, we’re happy to help you beat it.
Our trained debt counsellors can help with your financial planning
We have trained debt counsellors who can help you get back on track again.
We’ll be happy to negotiate reduced instalments with your creditors, while ensuring that you have extra cash that you can use for day-to-day expenses.
We’ll also ensure that you have peace of mind while you recover from your financial distress, by stopping your creditors from hounding you.
Since the process is so well-structured, and you have sight of everything as it happens via the DebtBusters platform, you can learn a lot during the process. This gives you the tools to manage your money once you’ve received your Clearance Certificate too.
Get in touch with DebtBusters
If you have completed debt counselling or are coming to the end of the process, start planning your financial future. Get in touch with your advisor and ask for their advise.
If you’ve not yet started the process and need help, fill in our free call-back from and we can get you sorted!
For more information on how we can assist, call us on 086 999 0606 or send an email to info@debtbusters.co.za.
