Tips For Fixing Your Credit Part 3; Talking with a Financial Advisor

Finances can be a complicated thing, and in some cases, can be one of the most complicated things we will ever deal with in life. Sometimes, understanding the basics of credit and debt can only take us so far toward reaching our goals. When you need advice that goes beyond the basics, you need to consider hiring a financial advisor.

Many people don’t realize that financial advisors, are just for the wealthy, and they are just for planning future investments, financial advisors can provide a wealth of knowledge and a range of services including helping you reduce debt which will have the simultaneous effect of improving your credit.

The most important thing you can do to choose the right financial advisor for you is to take stock of your goals and have clear ideas in mind of what you want to accomplish before you even begin research. Finding the right advisor can be like looking for a needle in a haystack, but it is a crucial decision.

Choose an advisor and/or company that is based close to you. That way, if you have questions or problems, it will be easier to set up a face-to-face meeting. Not only can phone calls be impersonal, it can be easy to forget questions you wish to ask over the phone, especially if you’re not in the habit of writing things down.

Secondly, take note of how the advisor gets paid. Advisors can work on fees, commissions, or a combination of revenue sources. If you are looking for something like debt and credit consultation, you may be better off going with an advisor that gets paid on fees rather than commission as they may be tempted to sell you products or services that aren’t ideally suited to you or your needs. Granted, this idea paints a rather bleak picture of human nature, but it’s one that needs to be considered.

Never be afraid to ask any question that pops into your head, no matter how silly or unintelligent you might seem. Many financial advisors say that one of the biggest issues they have with their clients, aside from not knowing what questions to ask, is not asking questions at all. When your financial future is at stake, you must teach yourself that the only stupid question is the one that you don’t ask.

Once you find an advisor you’re comfortable with, a big part of the battle is over. The more you work together, and the more that the advisor understands your needs the more effective the relationship will be. Once your debt is eliminated, and your credit is on the rebound, then you can consider sticking with your advisor and focusing on the investment side of things.

Hiring a financial advisor is just one aspect of a multifaceted plan to reduce your debt, improve your credit, and enjoy a better financial future. With a professional on your side offering advice and support, accomplishing your financial goals will become a whole lot easier.

~Guest Blogger~