Have a question about financial coaching? Check the list of frequently asked questions below.
Why do you not recommend debt consolidation or bankruptcy?
Debt consolidation is dangerous because you only treat the symptom of the problem. The habits—and the debt—are still there. You just moved the debt! You will pay about the same amount, which doesn't really help you eliminate debt faster. Most people take on more debt after consolidating or end up in bankruptcy because they didn't change their behavior. Bankruptcy is one of the most life-altering, negative events one can go through. Summary bankruptcy, which is total bankruptcy, stays on your credit report for 10 years. Consumer proposal, which is more like a payment plan, stays on your credit report for seven years. Bankruptcy, however, is for life. Loan applications and many job applications ask if you have ever filed for bankruptcy. Avoid it if at all possible.
How do I know if I need a coach?
Financial coaching is the most hands-on service we offer. Our coaches will help you develop and implement a plan specific to your unique situation. You may be facing a crisis like bankruptcy, foreclosure or harassing creditors. Maybe you need help building wealth or starting your small business. Even if you just have some general questions about money management, financial coaching could be right for you. Our coaches are trained to handle a wide variety of situations. They will offer detailed advice and a specific plan to make your money work for you!
How do I pay for coaching when I am broke?
Financial coaching gives you a high level of detail and individual attention. As you progress from reading one of Dave's books to Financial Peace University to financial coaching, the increasing cost reflects the increasing scope of resources devoted specifically to your situation. Although financial coaching can be expensive, it is a necessity for some. For others, however, it is a luxury. You will have to decide where to draw the line.
If coaching is a necessity, then you also have to compare it to: 1) the costs of bankruptcy, which can be $500—2,000 in legal fees alone, or 2) the cost of credit counseling, which, at $30—$50 per month for four years, would cost around $2,000. Our fees are a bargain compared to these options, plus you'll have a plan to change your financial future! Many couples also find that addressing their financial situation reduces the stress on their marriage.