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Can A Financial Advisor Help with Debt?

Are you drowning in debt and not sure what qualified professional you should turn to? Debt is one of the largest stressors in life and can hinder you from taking the next steps in life, whether that is buying a home or entering retirement. You may already have a financial advisor or are thinking about hiring an experienced advisor; however, your biggest question is, will a financial advisor be able to help with your debt?

The short answer is….no, a financial advisor is not a professional that will be able to analyze your debts and determine which debts can be consolidated and which debts can be eliminated. The professional who would best be able to help you set up a plan to alleviate your debts is a debt advisor, however, a financial advisor will be able to help you with debt in a different way. 

A financial advisor will be able to work together with a debt advisor to help you with certain financial guidance to help you manage your debt. Usually, a financial advisor will help you with a financial plan to ensure you have enough money for retirement or to have the extra money in your pocket to afford your desired luxuries. A financial advisor will generally review your current financial situation to help you set up your future finances, they will not be able to help you annihilate your debt. 

So why utilize a financial advisor if they are not able to get you out of debt? Even though hiring a financial advisor will not help get you out of debt the same as a debt advisor, they can work with the debt advisor you hire to provide assistance and insight in another way. One of the specialties of financial advisors is that they excel at creating budgets. An advisor will look over all of your current finances, including your history, and they will work with you to develop a long-term budget to keep you on track and grow your money while eliminating your debt.

Though they cannot advise you on debt elimination or consolidation, as stated above, an experienced financial advisor will have the ability to work review your current debt and evaluate their interest rates, minimum monthly payments, and other factors. Now, depending on your debt situation you may need to take extra steps with creditors, with your advisor speaking with creditors to renegotiate your current payment terms for terms that are more favorable.  

After looking over your current numbers, a financial advisor will be one of the best professionals to help you create a more effective repayment plan in order to eradicate your debt in a much faster and more efficient way. After your financial advisor guides you and helps get you on the right track to manage your debt and relieve that constant stress from your life. Not only will your financial advisor help to get your debt under control, but they will then work with you to devise a long-term financial plan. This plan will be designed to help keep you from falling into debt again as well as working on reaching your financial goals.

Ultimately, a financial advisor is a great resource that will provide in-depth financial knowledge to help dig you out of your hole of debt that is causing you sleepless nights. An advisor will even be able to offer one of their most valuable services of financial planning to hold you financially accountable and prevent you from falling back into your debt. Having a financial advisor will give you the ability to have a better understanding and control of your finances, which will encourage better financial habits and provide financial success for your present and future.

Published by Sage Investment Advisers, LLC in Poughkeepsie, NY

Check the background of this firm/advisor on FINRA’s BrokerCheck.