Recently, there was a news article about a consumer who made 59 car payments but not his final balloon payment.
As a result, his car was repossessed.
The consumer explained that he didn’t understand what a balloon payment was (even though he signed a contract for finance setting out all the details).
This just goes to show that we need to be educated about our debt situation or we could face very negative consequences. That process starts by taking time to understand your own debt situation and debt obligations.
In an effort to get people to talk about their financial situation and become aware of their options for dealing with debt, Debt Counsellors and the media have dubbed February: National Debt Awareness Month.
‘Debt Counsellors and the media have dubbed February: National Debt Awareness Month’
The idea is to encourage consumers to take a closer look at their total financial situation. It is also an effort to drive education and awareness on the topic of debt. Many people simply try to ignore debt instead of talking about it but efforts like this get people thinking.
Benay Sager of the National Debt Counsellors Association (NDCA) which is a group of Debt Counsellors who represent more than half to consumers in debt review, says it is “encouraging to see how these days consumers are being more proactive about dealing with their debt”.
He advises consumers who are struggling to manage their debt, to “have a no-obligations consultation or assessment with a reputable Debt Counsellor to explore their current financial situation” and to “take the first step to empower themselves with the information and solutions available.”