By Sheila Walkington
The financial planning advice industry has largely focused on clients who have money to invest. But where do you turn if you need guidance and advice on how to better manage your day to day finances, start saving for your goals or to get out of debt?
If you are struggling with debt, your options for advice will largely depend on the severity of your debt problem and your ability to repay your non-mortgage related debt within a 4-5 year time period. While there is no shortage of alternatives, the quality and the ethics of the advice vary dramatically so be very sure you find a service that meets your needs and you understand exactly what you are signing up for.
What to expect in terms of Service and Fees
1. If you’re a well-paid professional juggling money, work, family and frustrated that you’re not getting ahead financially due to debt or inadequate money management skills, then an advice-only Money Coach may be the ticket. A Money Coach will help you clarify your goals, identify blocks to financial success and create a system for allocating monies appropriately to your short, medium and long term goals. A key component to money coaching is to help clients shed negative attitudes and bad habits around money and to provide the structure, accountability and motivation to stop sabotaging their financial goals. Fees for a 4-5 month money coaching engagement typically range from $1,500-$2,500.
2. If your debt level (not including mortgage) is very high relative to your income and no matter how you crunch the numbers, the situation feels hopeless, then your best bet is to speak with a bankruptcy trustee about the options available to you. Fees and obligations vary depending on whether you decide to go the route of a bankruptcy or a consumer proposal.
There are other credit counseling or debt settlement consultants but many are not regulated so be sure that you are clear on what service they can provide to you and how you are actually paying for their services.
The best way to get financial advice that fits your needs is to be very clear on what your challenges are and what problems you are looking for someone to help you solve. Do your homework, take advantage of complimentary consultations, ask questions and trust your instincts.
Sheila is Money Coaches Canada’s co-founder and “Debt-WHYs Diva”.
As a client turned coach I can attest to the fact that working with a money coach can have a profound effect on your life. Money Coaching, by providing a system and coaching to help you navigate the inevitable financial challenges in life, provides a holistic approach for taking the money stress out of your life. Simply life changing!