It is possible for debt to occur suddenly in any family or for any individual. The loss of a job with no savings to fall back on, large student loans, and no work after graduation or some type of medical or family emergency can all be triggers for challenges with meeting financial obligations.
In most cases, however, debt is not a single issue, but rather a pattern of behaviours around money and financial management. Often people have high levels of unsecured credit on credit cards, or they may be living beyond their means and juggling minimum payments without any way to pay down the debt. This is the most common situation with most of the clients who come to 4 Pillars.
When this is the reality, all it takes is for one financial misstep to create a significant financial problem. It may be not making a car payment, failing to pay the mortgage, or not making the minimum payments on a credit card. This quickly spirals into a growing snowball of debt, with interest rates, penalties, and late fees increasing the debt load.
Education and Rethinking Around Finances
One of the services offered by 4 Pillars is to work directly with clients to rethink their money and financial management plans. The debt consultants can work with the individual or the couple to develop a working budget that creates the opportunity for paying down debt, beginning a savings account, and developing an effective budget that limits adding to the debt load.
Understanding Credit Scores
Through this process, the 4 Pillars debt consultant can also work with the individual or couple to understand the importance of maintaining a good credit score. This is a critical factor should you choose to buy a home, take out a loan, or to make other types of major purchases.
