Real-Life Decision Making -- Solution
You consolidate your client's bills even though he won't be able
to make the payment.
You decide to work out a consolidation plan for your client. You work with
all of his creditors to get interest removed and debt reduced. Still, when
you finish, the payment is nearly double what he can afford.
Your client assures you that a second job is all he needs to make the payment.
You explain the ramifications of default on a consolidation loan. He seems
happy with the solution and thanks you when he leaves. Still, you feel as
if you have done a huge injustice to this man.
Your instincts are proven correct about six months later when the man returns
to your office. His face is haggard, and he appears to have lost a considerable
amount of weight. "I just can't continue working like this," he says.
"Even working two full-time jobs, it's all I can do to make this payment.
I don't even have enough money to live on."
You were afraid this would happen. Now he will have to file for bankruptcy.
You could have saved this man a considerable amount of heartache if you had
helped him work through the bankruptcy in the first place.
"There really is no typical day in this business," says credit counselor
Michael Kidwell. "People call with $200,000 to $300,000 worth of debt. They
threaten suicide. They are depressed. We deal with money behavioral problems.
It varies every day."