April 17, 2018 | By RGR Marketing Blog

Debt Reduction Advice, Just in Time for Tax Time

For many of your clients, there really is no good time to get serious about getting out of debt. For others, the New Year, with its rash of resolutions to make changes for the better, is typically the perfect time. And for still others, tax season may be the best time.

For many consumers stuck on the debt merry-go-round, tax season offers an opportunity – typically in the form of a tax refund – to pay down some debt and to make a new budget. If you are interested in finding more prospective clients that are currently trying to find a way out of debt, this year’s tax season may be the perfect opportunity for them to get serious. Here’s how to find them, and what to do once you have.

Taking Stock and Sticking to a Tough Decision

The first thing anyone serious about getting out of debt needs to do, is to take honest stock of their situation, how they got into it, and how a jumpstart might help them get out of it. Counsel your clients to sit down with every current statement for every debt that they have as they compile a comprehensive list. In the list, they’ll need to list their balances and their minimum monthly payments.

Then, have them write out how they initially got into debt with each creditor. Have them write out how long they’ve owed each creditor, how many years they’ve been maintaining the debt, and how much they’ve paid to maintain that debt. Then, have them reflect on (seriously think about) what it would be like to be debt-free.

It can be insightful to have them total up how much money they would now have if they weren’t paying to maintain their debts, and make a strong case for using whatever tax refund they’re expecting to jumpstart paying off their debt.

Building a Realistic Budget

Once your clients are on-board with the concept and understand the rationale behind getting and staying out of debt, it’s time to begin the serious work of progressing toward living debt-free.

This begins with building a realistic budget, one that allows for debt to be paid down strategically, while simultaneously allowing for living in a way that makes it possible to stick with the budget.

Paying the Debt Down and Avoiding a Backslide

There are several schools of thought on the best way to pay down multiple debts. Regardless of whether you and your clients decide to go with debt snowballing or debt stacking, the main thing is to decide on the strategy that works for them and to get them to commit to sticking with it.

A little backsliding may be inevitable—cars break down, unexpected expenses do happen—but the trick is for them to get back to their strategy ASAP and to not let their debt spiral out of control again.

Other Options for Prospective Debt Settlement Clients

Lastly, when it seems as if all the options have been exhausted and there’s no other feasible way out, then the time is ripe to start talking debt consolidation or other more drastic consumer protection strategies. Debt is not insurmountable, provided there are means and the resolve to get out of it.

This tax season, your prospects are looking to get out of debt even more seriously. If you’re having trouble finding them, then it’s time to buy high quality debt settlement leads from RGR Marketing. Our trusted team of advisors is ready to help jumpstart your business today, so get in touch!

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