“Do you owe money to credit card companies?” You’ve likely seen the advertisements on TV promising to reduce what you owe to the credit card company. Some of these ads even suggest there’s a new government program to bail people out. However, there isn’t. If a client with debt asks for your advice, what should you do?

Let’s take a moment to consider the real problem. Many people spend money they don’t have without any idea of how they will repay it in the future. Credit card statements say how many years it would take to pay off the balance by making minimum payments and suggest paying it off in fewer years with larger payments, but many clients need to learn about budgeting. Often, however, they choose to keep spending. Here are some debt-reduction questions and tips to consider:

Beware of scams. Your client likely wouldn’t lend money to a dodgy family member,  borrow money from a loan shark or fall…

Read full article at www.accountingweb.com

Share.

Comments are closed.