Barath 1
Richard Barath
Ms. Hubbard
ENG-111
2 June 2015
Debt Management: How it Affects Consumers
Many consumers face high debts and are struggling to maintain their current bills to fit
their lifestyles. Whether they face high interest rates on secured/unsecured loans, credit cards or
have become stretched to far beyond their income, debt can become very overwhelming to
overcome. Credit scores can become effected by debt and make simple purchases harder to
achieve, placing the consumer into a higher risk category. However, debt is not all a bad thing to
have, as without debt a consumer cannot have credit, it has become a love/hate relationship that
many consumers do not know how to balance. There are a few options consumers have to
maintain their credit worthiness and overcome the debt crisis through financial planning, debt
management and understanding how credit works.
When consumers fall deep into debt they eventually turn to financial advisors, debt
managers, accountants and when all else fails a bankruptcy attorney for assistance or the
consumer suffers silently. “Across the globe, accounting and finance profession remains the
choice of career for many who are looking for great success”[ CITATION Far15 \l 1033 ]. Farakh
Farid continues to say:
“Over the past few decades finance professionals have become extremely en
vogue. According to Spencer Stuart Index of 2014 the demand for director
candidates with financial backgrounds rose slightly; 20% of new appointees have
banking, finance, investment or accounting credentials. With the recent
development in Information Technology, these professionals became even savvier,
looking to evaluate opportunities, implement new systems, and create business
Barath 2
cases to attract investment. In 2008, we saw a downturn in the global economy.
Yet even so, finance professionals remained in high demand, as they helped
businesses with debt restructuring, divestment decisions, creating cost-conscious
cultures to sustain businesses. As the economy recovered the same
contemporaries were engaged in project appraisals, raising funds, implementing
new IT solutions and new reporting tools etc. to support the growth of
businesses.”[ CITATION Far15 \l 1033 ]
A common program prescribed by these professionals within the accountant field is Debt
Management Program (DMP) prior to having the consumer turn towards bankruptcy. ”In a Debt
Management Program, a consumer makes a set amount of payment to a credit counseling agency
each month. The agency uses the funds to pay debtor’s credit card bills, student loans, medical
