You have questions about money but are not sure who to ask. The internet is full of ads from people wanting to help you with your money. Unfortunately some will take all of your money so you don’t have any to worry about.
So, what is a debt coach? A debt coach works with you to improve your financial literacy by teaching you better money management skills. They guide you in creating a budget, exploring options for reducing spending, boosting savings, and defining a debt management plan to help solve your debt concerns. A virtual debt coach works with clients online to achieve these goals.
A debt coach refers to a professional who will listen and try to understand your individual circumstances and current situation. They will conduct a full financial review and analysis of your cash flow, financial health, and debt problems to help you reach financial success.
When you are looking for a debt coach, they may go by several different names. While some may sound like a debt coach, they are really financial advisors. Others may sound more like advisors but are actually debt coaches.
If you want to search for a debt coach near you, here are some of the titles you might find.
- Money coach
- Wealth coach
- Finance coach
- Personal finance coach
- Debt Coach (such as My Online Debt Coach)
Those are just a few of the names you may come across. You may have to review their web site to determine if they actually fit your needs.
In addition, many coaches prefer to specialize in a certain type of client. For instance, some may only want to work with clients making 6 figures. Others may only want to work with single moms.
There are others, but you get my point.
Some money coaches will offer a free consultation as a starting point. This allows you to size one another up to see if the other is a good fit. Others may charge a fee for their consultation that is nonrefundable but can be used toward their fee if you decide to work with them.
What Does A Debt Coach Do?
A debt coach is a person who helps others build a positive relationship with money. It’s their job to help people establish healthy spending and savings routines to maximize their wealth.
There are many reasons why someone may seek out the help of a debt coach. Perhaps they have recently lost their job and are struggling to make ends meet. Or maybe they have been dealing with the stress of their debt for years and have finally realized that they need to get it under control.
Whatever the reason, a debt coach can provide the support and guidance needed to get out of debt.
But how do you get out of the seemingly endless paycheck-to-paycheck cycle and get the debt collectors off your back? By doing things differently than you have been doing them.
And part of doing things differently is knowing when (and who) to ask for help. In this case, it’s time to bring in a coach—a debt coach.
A debt coach will teach you useful strategies for how to create personal budgets, build your savings, save for college, pay down debt, and stop living paycheck to paycheck. A good coach will provide encouragement and not judge or criticize you.
A debt coach will also teach you better habits of money management. Their goal is to set you on a path for success to financial freedom.
However, a debt coach does not do the work for you. They will point you in the right direction, provide you some tools, training, and maybe offer some options. But the heavy lifting is done by you.
The idea is to help build better financial habits. Doing the work for you would be easier for you, but it is a better lesson for you to do the work.
A financial coach works with you to help better manage money, save money, and develop a game plan of healthy, long-lasting, financial habits.
A money coach should not be providing investing advice. In fact, without a license, they CANNOT legally provide any investment advice or recommendations.
They should not help manage investment portfolios or provide any recommendations for where to invest money.
In addition, a debt coach is not a
- Registered Investment Advisor or Registered Representative
- Life Insurance & Annuities representative
- Tax advisor or consultant
- Legal Advisor, or
- Therapist/Counselor
While coaches can provide basic information on the types of investments, they are not licensed to provide financial advice. If you’re looking for investment recommendations or management, a money coach likely won’t be able to help you.
Unlike financial advisors, debt coaches spend more time helping their clients understand the fundamentals of finances, rather than recommending investments and managing investment portfolios.
A debt coach’s role is to offer education, tools, resources, and ongoing support and encouragement – not financial advice. Rather than telling clients what to do with their money, coaches give clients information, support, and tools so they can make their own qualified money management decisions.
Once you have a better idea of how to keep track of your money, you can start to get out from under your financial problems. You can figure out a repayment plan for credit card debt and other debt that is impacting your credit rating and personal debt situation. You can begin to accumulate money.
Long term, you can enjoy things like investments, a new car, a vacation, and even retirement. You know – a happier life!
How Can A Debt Coach Help Me?
If you’re sick and tired of struggling with your money, it’s time to find a better path. And in order to start on that path, you have to take the first step forward. That first step is finding a debt coach.
If you need someone to help you learn to better manage your money, a money coach may be what you want. They will help you become more aware of your money habits (the good, the bad, and the ugly).
A coach will help improve your financial literacy. They will educate and assist you in reaching financial freedom.
A debt coach will show you how to pay off debt, create an emergency savings fund, stabilize your finances, and develop an overall plan to reach your financial goals.
Maybe you’ve tried to make a budget but just can’t stick to it. Or, perhaps you’ve run up so much debt between credit cards and loans that you don’t know the best way to pay it off.
A debt coach can help you structure your budget, build a financial plan, and hold you accountable throughout the process.
If you’re looking to better manage your money or simplify your finances, contact My Online Debt Coach for a complimentary consultation.
Remember: Working with a debt coach is like working with a personal trainer. But instead of losing weight and building your muscles, they’ll help you lose debt and build your finances.
Your debt coach will show you the methods, but you’ve got to do the work. Their job is to hold you accountable to the goals you set. They will encourage you when you feel like giving up, and help you celebrate milestones along the way!
A good coach is going to walk with you as you deal with the reality of money gone wrong. They will guide you on the path to money done right.
Maybe the question isn’t how a debt coach can help you? Maybe the real questions should be when can a debt coach start helping you?
I’ve got you covered on that! Check out MyOnlineDebtCoach.com to schedule a complimentary consultation. Start on the journey to a happier life today.
How Does Debt Coaching Work?
When you work with a debt coach, they’ll show you the basics of budgeting and getting out of debt. They’ll guide you on how to set and reach your financial goals.
But a good coach knows financial goals aren’t a one-size-fits-all situation. They’ll help you choose the ones that make sense for you.
Financial coaches typically individualize their approach based on the needs and financial situations of each client. They help them make progress in the areas of their financial life that are the most important to them.
Coaches often work with their clients over the period of several weeks to several months. They may meet weekly, biweekly, or monthly to provide advice and check on progress.
The full financial coaching process typically consists of a series of steps that may include
- Building awareness around spending habits (usually by tracking daily, weekly, and monthly spending),
- Defining the financial goals, and
- Developing a budget and a financial plan to achieve those goals.
Accountability is typically a part of the debt counseling process. So, rather than managing a person’s finances, a financial coach gives the tools to help make informed and responsible financial decisions.
They will provide education, guidance, and accountability. A coach will help you define a clear financial path forward. They also help you prioritize your steps along that path.
A good coach will help you develop an action plan to move forward. They support you and help you work toward a state of financial wellness and security.
Here’s the really cool part: Your financial coach is on your side.Your coach gives you the tools and then basically stands back and becomes your personal financial cheerleader.
But most importantly, they’ll offer you hope. When your finances are under control, you will live a happier life.
Once you master the tools provided by a financial coach, you will be ready to start accumulating assets – those life-enriching things that having more money can provide!
Read our Tips On How To Save Money When You Are Broke.
What Should I Ask A Debt Coach?
If you are considering working with a debt coach, there are a few things to keep in mind.
- First, be sure you hire a debt coach that you feel comfortable with. This is someone who you will be sharing very personal information with, so it is important to find someone you trust.
- Second, be prepared to be honest about your financial situation. A debt coach can only help you if they have a clear understanding of your finances.
- The next step is to be ready to commit to making changes in your spending habits. A debt coach will work with you to create a budget and debt payoff plan, but it is up to you to follow through with it.
So how do you decide who to turn to? First you should do your homework and narrow down your choices.
Once you have decided on a few you think might be right for you, schedule a free consultation, if they have one. If they don’t have one, you need to decide if you are willing to pay their fee.
Consider the consultation or first session a type of interview. They will ask you questions during this first coach session, but you might want to ask them some as well. This is your chance to determine if you want to work with this particular coach.
You may have an idea of what you want to know about the debt coach. If you don’t, here are a few to get you started.
- Can you give me a sense of your approach and process?
- How would you propose to help me with (name challenge)?
- How are you different from other coaches?
- What is your ideal or normal client? (As I mentioned earlier, some coaches prefer to specialize in a specific type of client. If they usually work with clients making 6 figures, they may not understand someone who is struggling to make ends meet.)
There is one last question you really should consider. Instead of asking yourself if you can afford a coach, ask if you can afford to continue without one?
Wrapping It Up
Debt coaches help individuals and families who are struggling with debt. They provide education on financial management, budgeting, and credit counseling. Additionally, they work with clients to create a plan to pay off their debts and raise their credit score.
Working with a debt coach can be the best option to get out of debt and take control of your finances. If you are struggling with debt, consider reaching out to a debt coach, such as My Online Debt Coach for help.
