Can a Financial Planner Help Me Manage My Debt?

According to the U.S. Federal Reserve, the total household debt at the end of the fourth quarter of 2014 stood at $13.5 trillion and continues to be a widespread problem across the country. And instead of asking for debt help, some people place so much pressure on themselves to handle the debt independently, which can lead to an assortment of problems.

A recent study by researchers at Northwestern University reinforced the notion that major household debt could be a significant predictor of poor health and well-being. The study found specifically that debt was linked to high blood pressure, as well as poor mental and general health, reports TIME.

If you need help getting out of debt, you might consider hiring a professional at some point. Though a financial planner might not be the first answer that comes to mind, this person can be an amazingly effective asset to turning around your debt situation.

Which Financial Advisors Can Help With Debt?

“Financial planners will look at your whole financial picture, including estate, retirement and tax planning, plus insurance needs and debt management, and help you come up with a plan to achieve your long-term financial goals,” writes Laura Shin of Forbes.

Here is a list of the different types of financial advisors that can help you get your debt under control:

• CFP: Certified Financial Planners, or CFPs, have to go through a strenuous exam that consists of two three-hour sessions. When choosing a CFP, look for the “CFP” certification logo and perform a background check.
• ChFC: Chartered Financial Consultants (ChFCs) need to be well rounded in all areas of financial planning. They’re required to complete at least nine college-level courses on financial planning from The American College and 30 hours of continuing education every two years.
• CPA/PFS: A Certified Public Accountant (CPA)/Personal Financial Specialists (PFS) has specialized training in personal finance issues and tax expertise.
• Certified Credit Counselor: According to the Federal Trade Commission (FTC), a credit counselor can help you manage your money and debt. You can find a list of approved credit counseling agencies by visiting the U.S. Trustee Program website.
• NAPFA-Registered Financial Advisors: These planners hold special membership in the National Association of Personal Financial Advisors (NAPFA), attained through extensive educational and professional mandates.

Related: Your Cheat Sheet to Financial Professionals

How Financial Planners Provide Debt Help

When it comes to providing debt help, financial planners have similar and different methods. An advisor might take a look at your spending habits and provide tips on how to cut back, or he or she might draw up a comprehensive financial plan. In many cases, the financial planner will do both.

“When formulating financial plans, I often use a spending ledger to find out where a client’s expenses are coming from and potential changes or downgrades to cut down spending,” said Carlos Dias Jr., founder and managing partner of the Excel Tax & Wealth Group. “In a case where a client has exorbitant debt, we prioritize all the balances, find out the interest rate being paid and begin with the debt with the lowest balance and pay that off first. Then we move on to the second lowest balance, etc.”

Dias also said that in certain scenarios, he’ll suggest clients roll over their debt into a home equity line of credit in order to receive a tax return deduction. But overall, he notes an essential component to eliminating debt is learning proper budgeting — and to do that, he’ll coach clients on ways to cut back their spending.

“We discuss eliminating unnecessary expenses such as cable TV, gym memberships, dining out, grooming (nails, hair, tanning) and using coupons,” said Dias. “Also, using external websites for cash-back opportunities.”

Nancy D. Butler, CFP and founder of Above All Else, Success in Life and Business, said she does several things to help people manage debt.

“First is to help them with a budget while educating them on the changes they can make to live within their means going forward,” she said. “Second is to agree to the plan of action to not only reduce current debt, but to remain committed to living within their means so the debt does not reoccur.”

According to Butler, the most important thing a client can do to climb out of debt is to stick with the plan they’ve developed. “It is important to hold them accountable,” she said. “They may want to follow the plan, but breaking old habits can be difficult. Ongoing monitoring and working with the client can better ensure they do the things necessary to remain on track.”

Read: How Dave Ramsey Helped One Couple Demolish $60K of Debt in Just 8 Months

Affordable Sources of Debt Management Help

“Most financial planners focus on wealthier people, whom they can charge $1,000 to $3,000 for a financial plan, or collect 1 percent of their assets, on average, to manage their money,” writes Tara Siegel Bernard of The New York Times. If you’re on a lower income and neck high in debt, this price is simply not doable at all.

For consumers who can’t afford to hire a financial planner but need some assistance tackling their debt, there are a few low-cost options on the market:

• Personal Finance Software & Websites: Personal finance website LearnVest offers personal finance consultation and charges a one-time setup fee of $299 plus $19 a month.
• Debt Management Companies: Other low-cost debt management companies on the web include sites such as Cambridge Credit Counseling, GreenPath Debt Solutions and InCharge Debt Solutions. The Simple Dollar recommends these planners based on their reputation, extensive services, high accreditation and low cost. For example, GreenPath specializes in credit card debt, student debt and more, and provides debt management plans with a one-time setup fee that ranges from $0 to $50, plus a monthly fee ranging from $0 to $75.
• Non-Profit Debt/Credit Counselors and Organizations: According to the FTC, these nonprofits can be found through universities, military bases, credit unions, housing authorities and branches of the U.S. Cooperative Extension Service. But be wary: The term “non-profit” does not necessarily mean that these services are free or cheap. Do your research first before signing up for their services.

Keep reading: How I Paid Off My $100K Debt in Just 5 Years

If debt has created a financial hardship and you’re unable to afford any help, ask agencies if they’re able to waive their fees. Also, avoid rushing into loans to get rid of debt. While it’s convenient to have all your debts consolidated into one single loan, the fees and interest rates charged by some lenders can propel you even further into the debt cycle.

This article originally appeared on GOBankingRates.com: Can a Financial Planner Help Me Manage My Debt?

This article by Paul Sisolak first appeared on GoBankingRates.com and was distributed by the Personal Finance Syndication Network.