Comments on: Debt Help – Who can You Trust

By: Damon

Damon — Thu, 05 Jan 2012 00:23:55 +0000

You are welcome Peter, glad I could help.

By: Peter

Peter — Wed, 28 Dec 2011 10:30:21 +0000

Thanks for sharing this. It really is import to know who you can trust because if you aren’t sure it can be really a pain to the head. Thanks for these steps. Thanks!

By: Damon Day

Damon Day — Tue, 31 May 2011 03:15:41 +0000

Hello Jon,

Thanks for taking the time to share your thoughts on my site. I of course agree with you which is why I charge my clients directly for a consultation vs offering them for free, but then having a need to sell something in order to get compensated for my time and my knowledge.

One of the challenges I run into from time to time, is educating consumers that spending a little bit of money to make sure you are getting the right information, is so much less expensive then acting on the wrong advice from a sales person, simply because they were offering a consultation for free.

It is going to cost a consumer money regardless of who they talk to. The difference is that with me, you know right upfront what you are going to get and what it will cost. With a free consultation, you have no idea whether or not the advice that you are getting is because it is the best solution, or the one that the person offering the advice is getting paid to tell you.

If you don’t pay for a professionals time, then someone else has to be. At that point they are an advocate for the person paying their bills, not for the person getting free financial advice.

As Jon said, you should always ask how a professional is compensated and then weigh that against the advice that has just been given.

It is impossible to serve to masters.
Damon Day recently posted..Legal Helpers Debt Resolution Review – Secret Business Plan Exposed (dofollow)

By: Jon D.

Jon D. — Mon, 30 May 2011 15:53:07 +0000

Excellent advice. I’d add that if you meet with a financial planner and they do recommend something to ask if they receive a commission for selling that product or service. Unbiased sales-people exist offline as well as online.

That said, a financial debt consultant who does not receive sales commissions can direct you to options and explain the small print so you know exactly what you’re getting into to ease your debt.
Jon D. recently posted..ICBC Requires Original Receipts

By: Damon Day

Damon Day — Mon, 09 May 2011 03:08:55 +0000

Jeremy,
To properly answer that question for you, I would need to know much more information about your overall financial situation. I would recommend scheduling an in depth phone consultation with me so I can take a look at everything that is going on, your expected future earning capacity and your goals.

If anyone offers you advice without taking the time to really understand you and your situation, you can rest assured that the advice you are getting is very likely just a sales pitch. Don’t be surprised when the solution they offer, just happens to be the only thing they are selling.

The decision to withdraw money from a 401K to pay down debt is not a decision that should be taking lightly and is not reversible once you do it (regarding the taxes and penalties.)

In some cases, borrowing or withdrawing money from a 401K to get out of debt can make good sense, but in other situations, there may be much better alternatives that will allow you to accomplish the same end result.

By: Jeremy

Jeremy — Sat, 07 May 2011 01:36:48 +0000

I have been thinking about taking my 401k early to pay off my debt. I know the steep penalties but I am paying 18% on my cards. Plus the stress of having the debt is not good for me at all. I am in my 40s so I won’t be able to make all the money back in my 401k before I retire. Is this a really bad idea or acceptable in my spot?
Thanks
Jeremy

By: Damon Day

Damon Day — Thu, 28 Apr 2011 17:55:08 +0000

Well said Travis,

Every commercial you see is just an offer for a consumer to call in for a free sales pitch about a program that in almost every case will not be the best solution for the consumer.

In many cases it will actually make the consumers financial situation worse.
Damon Day recently posted..Legal Helpers Debt Resolution Sued in 30 Page Complaint Filed by Illinois AG (dofollow)

By: Travis

Travis — Wed, 27 Apr 2011 08:45:28 +0000

I absolutely agree with @sarah. First, the commercials are nothing more than the TV version of “link bait”. People forget all too easily that companies are in business to make money. They conveniently leave any reference to this fact out of their commercials. Why? Because in just about 100% of cases, there companies either cannot do anything substantive to fix your debt problem OR they can’t do anything you could easily do yourself by asking for help from the companies to whom you owe money. Communication is always the key.
Travis recently posted..Imagine Intelligent Advertising at Your Fingertips

By: sarah

sarah — Sat, 02 Jan 2010 15:02:00 +0000

Excellent advice as there are so many so called debt relief companies out there that will just make your debt worse. I can't stand those commercials on the radio either - I think they are all scams, people just need to start reading and understanding how debt gets erased, then seek the "worthy" professional help they need to get out of debt.

.-= sarah@Florida dui attorney´s last blog ..All About Florida Ignition Interlock Devices =-.

By: Friday Fiscals link love | Mighty Bargain Hunter

Friday Fiscals link love | Mighty Bargain Hunter — Sat, 10 Oct 2009 03:48:46 +0000

[...] Day & Associates has some general advice for finding someone you can trust for debt [...]